Does someone know the answer to these questions: Thanks!!!?

Question

Who is responsible for the numerous bankruptcies associated with increases in adjustable rate mortgages, the lender or the borrower? Why?

Answer 1

ultimately, it is the lender's responsability. They are the ones who took a gamble and hoped it would pay off big. It was they're money in the first place and they chose to place it in a risky investment. If I lost $100.00 at the poker table, is it the dealer's responsability. Investing is a gamble as well and when you place your money in a risky proposition, hoping to hit it big, then you only have yourself to blame when it goes belly up.

I'm not saying the borrowers are guiltless here. I'm just saying that the responsability is ultimately in the lenders hands. They always could have said no.

Answer 2

When you research housing with the purpose of purchasing, YOU, need to make sure that nobody is railroading you into a purchase that you cannot afford. YOU must do your homework and decide that YOU will have the finances to handle your mortgage for some years, YOU must write and plot your position in anticipation of any evil and cruel day which you might have to face. The way of the world is to pull the buyer in at any cost. Lowering rates to entice and then those same rates being raised hurts everyone. I bought a house and was able to live in it for about 5 years. Throughout the entire time, I had problems with flooding in the basement. Eventually, I became so sick from the mold and mildew and spent so much time in the hospital, that I had to give up the house. I could not afford the amount of work that was going to be necessary in order to fix the problem and of course, by the fifth year, my mortagee had changed hands 6 times!!! I don't know WHO I bought my house from. At any rate, they were cold and callous and had no concern for my health or desire to help me. I got out of the house and left it to them. I blame myself. I should have done more research. The seller was out for himself - and he was supposed to be a friend.

Answer 3

I think this is a good question! If you bought a car, thinking it was going to work, and then it breaks down, and the seller says, "you bought it, it's your problem," we call that a crime. This situation is a bit like that. It depends how people were sold the mortgages. If they were told, "don't worry, in a couple of years, the interest rates will be low again!" then they were "sold" a lie. Are they suckers? Maybe, but maybe the salespeople were unscrupulous. Mortgage rates are complicated and people don't always understand the rules...I think it's important that consumers are informed and not misled...

Answer 4

The lender, because they gave loans to people who were bad risk. They then try to rip them off with the high interest rates. Big business is not and never has been our friends.

Answer 5

Both. Because they went into contracts whose risk consequences were not understood by them. But this is natural. People learn based on past decisions that turn out to be mistakes by hindsight. We must go ahead instead of trying to find out a scapegoat. We take responsibilty for all adverse events that happen by willingly suffering rather than placing blame correctly or incorrectly.