where was the govt at when all of these mortgage companies gave out high interest loans that shouldnt have been done in the first place? should the govt. help people who are going into foreclosure because of high interest? where are the over 1 million people in foreclosure going to find homes, whos credit will now be worse? isnt it the job of those mortgage companies to ensure that people are financially sound enough to handle the payments, now because of their bad judgement many families are left with no where to go? do you think the govt should step in and help those people? those people will now have lower credit scores than before and have a hard time finding any housing... what is the govt going to do about the increasing number of basically homeless people due to this problem?
2007-07-28 06:19:12 · 6 answers · asked by jfrench4 4 in Business & Finance ➔ Renting & Real Estate
People who take risk have to assume the risk. Only individuals know their budget and can decide if they can afford a home. If they stretch to get more home than they can easily afford they have to assume the risk.
How could a mortgage company know if you could afford to buy? They don't know how many people you support, if your car is on it's last legs, if you are about to finish an internship and increase earnings or if your parents are dieing and will leave you money in 2 years. All they can do is look at income to debt levels and use statistics to say you can borrow up to a percentage of that.
2007-07-28 06:25:55 · answer #1 · answered by shipwreck 7 · 0⤊ 1⤋
Believe me the govt is doing somethings and providing help where they can. I'm an appraiser, and what we are experiencing is a lack of licensing, accountability and legal liability in the lending section of this business. I'm sure this is about to change. The other thing is greed. Loan officers weren't held accountable for their actions, which is resulting in people losing their homes because someone decided they could stretch and bend the guidelines to make themselves a commission. This whole thing just makes me sick. If I had operated my business like some of these loan companies, I'd be in jail right now. And that is where some of these loan officers should be.
2007-07-28 13:30:33 · answer #2 · answered by Alterfemego 7 · 1⤊ 0⤋
More importantly, I think it is the job of the people getting into the mortgage to know if they can afford it or not.
How is this much different from all the people who buy cars they cannot afford, only to have them repossessed? Or folks living on their credit cards and declaring bankruptcy? Should the government step in and save these people too?
Financial irresponsibility comes in many forms.
The subprime lenders that engaged in predatory lending practices will have their reckoning. For the naive people that signed on for mortgages they couldn't afford, I hope they are more cautious in the future.
2007-07-28 14:14:42 · answer #3 · answered by godged 7 · 0⤊ 0⤋
Major problem, I agree, and now the entire economy will be suffering from it.
They are now having to step in. Look at this site
National Home Recovery Program for foreclosures http://www.nhrp.com/
Best of luck on your research
2007-07-28 13:26:00 · answer #4 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
You want the taxpayers to do what? Pay for your housing? I am sure no company hid the mortgage amount or forced anyone to buy a house they could not afford. I will be seriously PO'ed if I have to pay for not only my standard of living for my family but that of other families as well. Taxpayers should not bear the burden of people wanting to live beyond their means.
2007-07-28 13:34:45 · answer #5 · answered by Landlord 7 · 1⤊ 1⤋
Did you consider that these people might have broke one rule.
1==LIVE WITH IN YOUR INCOME, our pay check is not guranteed. People need to think REAL hard before signing papers to buy anything on credit. No the goverment has no business helping them out.
Virago Jim
2007-07-28 13:28:42 · answer #6 · answered by hotvw1914cc 6 · 0⤊ 0⤋