Do you think this attitude is one of the main reasons for the housing crisis?

[Fatty]

http//biz.yahoo.com/brn/081029/23677.html?..pf=family-home<br />
<br />
Read number 14. What really sticks out to me is My wife and I did not even know what types of loan we are getting. At that point, we had no choice but to finish the deal and unload the truck. The settlement agent did not know anything about the other terms and conditions. She suggested we should get more detail from Blood-sucking Mortgage<br />
<br />
You did have a choice... dont f**ing sign, stupid. <br />
<br />
This article sums up my main problem with the housing crisis. People knew that they were getting into a bogus loan, signed anyway, and now blame it on everyone else. Loan docs have about 60 pages explaining the loan backwards and forwards.<br />
<br />
Anyone else have an issue with this?<br />
agent smith - Id be happy to explain amortization to you. I can knock that book from 10000 pages to about 1. its not hard. Did you even see mccain in the question? Do you even know what the word amortization means? I could draw you a graph of how every one of these loans works... but im afriad if you dont know what a rectangle is you might have difficulty with it.<br />
tribeca belle - again, this whole woah is me attitude for poor uneducated america. IF YOU CANT READ, YOU SHOULDNT HAVE A MORTGAGE. you dont have to be educated to read in plain letters where the loan docs say ADJUSTABLE RATE MORTGAGE. its in huge letters on the note. doesnt take a rocket scientist to figure out that adjustable does not mean fixed<br />
Let me be clear about something, to all the pity hearted fools that think america was taken blindly... I worked in mortgage. I advised people properly, against risky notes. THEY DIDNT CARE. they just wanted what they wanted. and now are complaining that it didnt work out. Are you really telling me that it is not someones fault for getting into a 500K home on 2K a month salary? Any moron knows thats a bad idea. everyone had dollar signs in their eyes. greed got the best of americans. WE ARE NOT VICTIMS<br />
Gunny C - perfectly stated. my point exactly.<br />

 

[Ben]

Yes I do.


I just bought my house.....my aunt was my agent and I still ask 12 times before and during the signing if it was a FIXED rate.

I trusted no one.....and I did not get screwed.

 

[GoldStandard]

I do

Basically Americans are too poorly educated to make their own financial decisions. No child left behind was Bush's only chance for greatness.

We got what was coming to us. Greed is always there and someone is always trying to take what you have. Today the defense is education in the past it was bloodshed.

 

[AgentSmith]

I have a 10,000 paged document that you need to read (and it is required reading) if you vote for McSame as president.

I expect you to read it all, understand, and be able to explain back to me how amortization is mathematically derived. If you cannot do this, you will be prosecuted in full.

 

[axsooted]

yup, not his fault. how could he have ever had the foresight to predict a future where he wouldn't be able to afford a half a million dollar home on a part time job?
no worries, on November 5th all his (and the rest of you) troubles will magically disappear. there will be enough snacks for the whole family for a whole week, forever and ever.

 

[tribeca_belle]

We know that predatory lending practices were taking place. If you expect all Americans to be or to become sophisticated about transactions before signing, then you are very naive yourself.

Blaming the victims who are losing their homes is the exactly wrong approach. That is another way of saying that nothing can be done until people become more knowledgeable, financially savvy and careful. That's not going to happen any time soon.

 

[blindguyrocketmailcom]

No--that was not the cause of the housing crisis. It's blaming the victims.

These people--and millions of others--were victimized by epidemic predatory lending. Mortgage firms were allowed to issue mortgages far beyond the safe limits of the reserves they had. Federal regulations were not enforced, allowing sub-prime mortgages.

None of those things are the fault of the innocent home buyers.

The ONLY people who are trying to blame them are the criminals who were responsible for this. And the gullible people like yourself who have been taken in by their propaganda.

 

[GunnyC]

I didn't read it but I have said from the start that the largest problem with the housing crunch/crisis is simply too many people getting loans that should not have (thanks to Congress and trying to use federal guaranteed loans as a payment to ensure high risks got a home) and too many buyers either too lazy, too short sighted or just too ignorant to understand what they were signing. The Mae and Mac problems were trying to get ineligible buyers who were minorities a free ride to get what they felt was owed them (not all cases but too many) and other people getting greedy and taking advantage of it to flip houses and make a fortune easily or buy more then they could afford (using non-fixed rate loans) to impress others or figuring they could sale it for a profit prior to the balloon payment or increase in rates/payments hit. Banks/loan companies were forced into the granting loans by Congressional (not Presidential) actions and good business practices went out the window. I have never and would not get anything besides fixed rate; if I can't afford the payment on the house I want with a fixed rate you save money and make a bigger down payment or settle for what you can afford instead of your dream house.

 

[justplainjim]

You really don't get it.

The people were hit over and over again that being in debt was a good thing, that getting loans was the American dream and they bought into it.

It is not the people who are to blame, it is the lending practices.

But more importantly, the Federal Reserve System that shoved this down America's throats. The Federal Reserve System, contrary to popular belief is NOT a federal entity, but rather a private entity where not even our congress knows all the players in that system.

How does it feel to have all our money, our interests rates, our money supply, our lending practices being controlled by a few extremely rich people?

====

For information about that and other enlightening issues, download this

TVU Player
http//pages.tvunetworks.com/downloads/player.html

Then I would tune into
Channel 68078
Exposing 9/11, police state and tyranny
Documentaries about 911 and other social issues over and over again.
There is enough there to interest everyone. Including partisans from both the left and right.

Peace
Jim

.

 

[SCOTTM]

I have a problem with it.

Mortgage loan documents are pretty standard, and every lawyer who handles real estate deals knows them inside and out.

Maybe we need a law that requires every lender to add $500 to the mortgage loan it is offering to pay an independent attorney to review the documents and tell the borrower what his or her obligations will be. Part of it should be something like, ?Your payment in the first year will be $600.00 per month. Then it will increase to $1,500 per month.?

Most people aren?t going to read a 60-page document. If they do, they won?t understand much of it. Many of them don?t know what ?amortization? means, so they sure don?t know what ?negative amortization? means. When things go sour, it?s always someone else?s fault. They buy a $200,000 house with a zero-down mortgage and then find out ?their? house is now only worth $150,000. So they?re not ?owners;? they?re renters! They put nothing down and have nothing at stake, so they walk away. And a few of them trash the house on the way out the door.

Will you lend me $1,000 so I can go to Las Vegas and shoot craps? I?ll repay you if I win. If I lose, I won?t be able to repay you. That?s the type of deal lenders and lower-income borrowers were making during the housing bubble.

Credit is credit. You either have the ability to repay your lender or you don?t. If your ability to repay is based on the raises you hope to get or an increase in the value of your house that you expect to see, then both you and your lender are just plain stupid. The lender will take the loss, but those who conveniently defaulted do not realize is that when they default on a mortgage, they will never, ever qualify for a mortgage loan again. They will be renters for life.

Our politicians forced mortgage lenders to make sub-prime loans, and the borrowers who got them are not ?innocent victims.? If someone gets into a contract he doesn?t understand, he shouldn?t get into it. ?Predatory? lenders were a product of political pressure. They sure do look ?greedy,? but weren?t the borrowers also greedy? They were looking to place a huge bet with borrowed money and keep the profit if the bet paid off. When it didn?t, they just walked away and let the lender take the loss. Now, those are great odds ?Heads I win, tails you lose.?