Every conversation I hear about the record foreclosure crisis revolves around greedy borrowers buying houses they cant afford, speculators getting bad loans cause they want invest in property and are therefore greedy, and greedy crooked lenders making bad loans. But there are other things going on in our society that might seem to point as at least possible other causes. For example, Did you know that there are many types of subprime loans? one type is for someone with good credit who maybe can only afford a $200,000 house, and gets a rate that is artificially low for a year or 2 just so they can qualify. Another type however is for people who do not have the down payment to buy a house and therefore get an adjustable rate mortgage with higher rates, and possibly even higher rates in 2 or 3 years. Still another type is for people who do not have the requisite computerized credit score, which means that you automatically have to get a high rate adjustable loan as well.
2007-11-16
02:14:27
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3 answers
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asked by
ballerb j
1