The Blame Game and the Subprime Mortgage Lending Meltdown

August 22, 2007

  • August 22, 2007 at 2:23 am
    DWT says:
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    Maybe its just that I take a different approach, but as a home buyer I look at what payment I can handle and still maintain the lifestyle that I want. That being decided, I can then work with a lender to determine if they can get the payments to match my criteria.

    And as for any of the variable rate loans… honestly if something looks to good to be true, it ususally is.

  • August 22, 2007 at 2:23 am
    Mr Truth says:
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    Don’t forget to put some blame on the Federal government and “civil rights” groups for putting the heat on lenders to loan money to people in various minorities that really did not qualify in order to avoid being charged with discrimation.

  • August 22, 2007 at 2:24 am
    Homeowner says:
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    A professional loan UW would not give a loan to someone who has no means of paying it off.

    The signs said “own cheaper than your rent” but they don’t tell you the other items you have to pay for – electricity, gas, garbage, water, taxes, maintenance, lawnmower, etc.

  • August 22, 2007 at 2:27 am
    Greedy says:
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    When greed comes in the front door, all reason runs out the back! This is a far more complex problem than any of you are giving it credit for but it boils down to greed. The greedy are homebuilders, realtors, mortgage brokers, financial institutions, bond underwriters, financial managers, and yes speculators (many of whom buy these homes to turn them.) If they all get burned severely it will be perfect justice! But don’t come looking to the rest of us to bail you out!

  • August 22, 2007 at 2:31 am
    dwt says:
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    Don’t start the minorities routine…

    The heat was put on lenders to loan money to all people who generally would not have been acceptable risks…

  • August 22, 2007 at 2:34 am
    DWT says:
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    Let’s not forget about the home buyers…

    How many of us know people who went out and bought homes way above their heads simply because they could get a loan?

    Heck even my 20 year old son was smart enough not to take out a loan on a motorcycle he wanted because they wanted to charge him 22%.

  • August 22, 2007 at 2:37 am
    Compman says:
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    You really need to come out from your zone you call reality and see what the real world is like.

  • August 22, 2007 at 2:40 am
    Homeowner says:
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    Then I gotta get back to work. I’m passionate on this because I lost over 10% of the value of a house I owned for 4 years (percentage factoring in sale price, commissions, fees, etc).
    Compman, I disagree with you to a degree. Where I was the average home price was 160,000, not excessive. If you make $50k and can budget you should be able to afford that, but I guess many buyers had lots of other debt or lower incomes.

    It really ticked me off that while us & others were trying to sell our relatively new homes and not getting buyers Ryland was having their crews work full days on Sundays and holidays just to keep putting up houses – even though theirs were not selling either.

    Ryland stock – over $80 January of 2006, now at $32. They are getting what they deserve.

  • August 22, 2007 at 2:53 am
    GB says:
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    “The problem was that lenders would not work with the people who honestly wanted to work things thru, hence the resulting foreclosure when the homeowner was out of options.”

    A homeowner’s options end when he chooses his loan. After that his only options are payment or forclosure.

    As for losing your 10% in 4 years. That is a short time to be turning around your house, especially if you bought in an area that had a steady supply of new homes on the market. Your mortgage payments were supposed to be investments that returned income for you. They are payments that secure housing for you. If your 10% worked out to $20k, or $5k/year, that was a living expense. ( living in a house for about $400/month isn’t so bad )

  • August 22, 2007 at 2:54 am
    GB says:
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    my last post was supposed to say;

    “..Your mortgage payments WEREN’T supposed to be investments……”

    sorry about that.



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