This is a perception issue also. People have become convinced they should be living in a very expensive home without the corresponding income level to support such a lifestyle. With the home comes cars, furniture, vacations etc. Spoiled Americans now sweating bullets.
2007-04-03 09:47:24
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answer #1
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answered by zp055att 6
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Just because you have a subprime loan doesn't give you an excuse to be stupid. Of course everyone is the victim so I'm sure some sh*thead senator will call for the bail out and then the responsible person that doesn't get in over their head, goes to work and pays taxes will get screwed over once again
2007-04-03 16:44:05
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answer #2
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answered by freemulch 2
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Well, some of it is they have lenders giving out mortgage payments with 13% interest so these people's house payments are $2000 a month and then if they lose their job they are done for, so I am a little sympathetic. People want to own a house, and you can't always predict being downsized or whatever. If you don't immediately find a new job, there is no way to keep up that kind of payment.
The interest rate is way too high for one, double the usual average rate which makes the payment unreasonably high each month. That is something that probably shouldn't be allowed as that is probably leading to these kind of problems for people that probably don't have a lot of money.
2007-04-03 17:42:39
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answer #3
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answered by Karen 4
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well... also I'm tired of the "boo hoo" stories I've heard about the lenders that were "just trying to help people out"...
you give someone a loan that anyone with a brian would know couldn't pay it back... it's very poor business... except the CEOs will probably cash out and run to the Caribbean... no different than stealing...
and often, your idea of "responsibilty" is bad for the economy... throwing a large number of houseowners out on the curb is never good for the overall economy, these people stop spending and become less productive...
2007-04-03 17:10:14
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answer #4
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answered by Anonymous
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I hope not. Just remember that the news media doesn't tell you about the 80% of subprime borrowers who sat down and did the math. They figured out how high the monthly payment could go, and figured out whether or not they could actually afford it.
They only tell you about the 20% who didn't plan ahead.
2007-04-03 16:49:59
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answer #5
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answered by DOOM 7
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predatory lending practices & predatory realty brokers are as much to blame...Every one dreams of the castle. So few achieve the dream...we all should learn to live with less and there will be more to do the things that need doing.
The government will never bailout the tax payers..only the lending institutions.
Funny how that works.. we( the taxpayer) pay, and then we pay again.
2007-04-03 16:41:01
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answer #6
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answered by tincre 4
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The government is not the answer....PERSONAL RESPONSIBILITY!!!!
If people would lear to save and to budget these things would go away. Like payday loans and credit cards - you play with snakes you will get bit!
I feel that more personal econimcs should be taught in high schools...teach them how to handle money and the traps of debt. But it all boils down to personal responsibility.
2007-04-03 16:43:34
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answer #7
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answered by Anonymous
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I agree, but you have to also concede that the predatory lenders are criminally negligent. Whole business models are built around the assumption of failure of these subprime loans (benefits to lenders being tax write-offs, etc.). That's not ethical, nor is it beneficial for the economy.
2007-04-03 16:37:29
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answer #8
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answered by Anonymous
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Those people aren't victims, they could have said no. They just needed to make some sacrifices to pay their bills like the rest of us do.
2007-04-03 16:36:25
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answer #9
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answered by smoothie 5
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We won't bail out the borrowers, we'll bail out the mortgage companies.
2007-04-03 16:33:49
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answer #10
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answered by Crabboy4 4
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