Poll: Like Oh My God Correct me if i am wrong please!?

Question

Ok i am the type of guy, that i will hear about someting in the news and listen but not look at the whole thing ok.

well a few mothes ago there was a big who har about the american housing

i was watching a program about it last noght and i want to make sure that i have it completly right

Ok America comes up with mortgage sellers, the banks come up with something called a sub prime mortgage,

The WHOLE of america goes for it and get one without asking the question. What haappens after the 5 years will the payments still be fixed or believing the sellers and saying that they will be moved on to another loan.

The Whole of america goes for this then everybody is surprised (and this is the bit that worries me is that they all say they wern't expecting this but it clearly says) and can't pay there morgates and the banks being the greedy idiots reposses all of the houses and then say we have lots and lots of property that we can't sell please tell me if i went wrong anywhere

oh and dosn't it show what happens when you become too greedy ?

Answer 1

Here's where you went wrong.
People with bad credit desperately want money to buy a house. Banks tell them no, so they find a mortgage broker who tells them yes. The broker works for his commission obviously and starts telling them about all these "great" programs with really low monthly payments and people get all starry eyed thinking they can buy more house than they really can afford.
They fail to hear that interest only loans, and ARM's etc all have payments that skyrocket after a few years. Sometimes your payment can DOUBLE because of this. They don't listen to the broker and clean up their credit so they can qualify for a conventional loan before their rates adjust.
It's nobody's fault but their own that they didn't research, and that they tried to buy a house when they had no business doing so.
Buying a home is a great investment unless you have lousy credit, then it's the worst mistake you could ever make.

The @ss-clown below me has no clue what he's talking about. Bush didn't force these people to beg for loans when they had no business doing so. Bush didn't force banks to approve people they shouldn't have. Way to eliminate personal responsibility William, you're everything that's wrong with this country. Blame it on someone who had NOTHING to do with it. NICE!

Answer 2

I won’t deny that there were unscrupulous mortgage officers out there, but the news is largely ignoring that the buyers didn’t bother to pay learn about what they were doing. If 9 people said a person couldn’t get a loan and then #10 gave a different answer, why wouldn’t a consumer be concerned that #10 wasn’t on the up and up? A whole industry is getting a black eye in the media, while consumers are made to be the victims. Even in stories that address the issue, the fact that people weren’t reading what they signed tends to be skimmed over.

FYI, not all subprimes were ARMS. It’s possible to get a fixed rate subprime loan.

Answer 3

You got the part wrong where you think this is the "whole of America." Sub-prime mortgages only applied to those who never should have qualified for a mortgage in the first place. They couldn't really afford the house or the payments or the taxes or the expenses, yet they went ahead and signed on the dotted line anyway.

For those of us who have high incomes, low debts, and a manageable mortgage, we're just fine! Oh, except for the fact that we're keeping the country afloat on our backs while the government (that's us by the way) bails out these people.

Answer 4

I didn't go for it, but I agree that the driving force behind our capitalist system is greed. Look at the Grammy's, no longer are our artists artists, albums are judged purlely by record sales. When 10 million people get duped whether its a brain dead mortgage or a poopy cd someone behind the curtain is cleaning up and its the average hard working Americans that foots the bill. People need to wake up and understand the true cost of avarice before its too late for this nation.

Answer 5

Dear Kemodo 344, I waited to respond, as I wanted to see the general response to your overview. I appreciate the answers from people with limited knowledge, but give advice as they were experts. The FACTS are Sub prime Mortgages started in the late 80's as a new ave. to increase mortgage numbers. As major lenders realized the potential to soften Underwriting Guidelines a competition started to developed to relax Guidelines even further until we were approving loans with very little documentation to identify their ability to pay. Couple that scenario, with the influx of new hires in the business, with little, or NO professional training, and you have a formula for disaster! Greed was a major player in this fiasco, lenders were told time, and time again it was just a matter of time! My associates and I have documented proof to these facts and have forwarded them to the proper authorities. Although retired, I am still advising atty"s on R.E.S.P.A. violations to be included in pending lawsuits.

Answer 6

And the best part is that the banks go crying to the government and the government lowers interest rates to help out the banks. The house buyer, even if he were duped into thinking that all would be well, gets stuck with higher interest payments while the banks come out smelling like a rose because the government has bailed them out. The individual gets shafted while the banks that set up this scam make out fine.

Answer 7

The whole of America most certainly did not get subprime mortgages. The subprime market is only about 10% of the pie. The people that got subprimes assumed the market would continue to rise and failed to understand the financial terms of mortgage they were purchasing.

No one should every sign a contract they do not understand.

Answer 8

For some it's plain greed, for some it was dreaming that in 5 years, they'd be making more income to afford the payments.
If I would have bought a house using this plan, I would have sold it the 4th year and made some $$$ on it, and buy a house with that cash that I could really afford!

Answer 9

You are misinformed with regard to the percentage of people who did this. Those who did, did so knowing the consequences. The number was certainly a minority. None of this has anything to do with our president, as some without the facts have stated.

Answer 10

Essentially your correct. You can thank the Bush Administration for this current mortgage fiasco as well as many others.
To jump start the economy (without thinking it through at all) the Bush Admin proposed allowing creditors to issue sub prime mortgages. These mortgages were basically issued to peopel who wouldn't normally qualify because of there track record, ability to pay, or even credit risk. While on paper it's a good idea because it does get things moving quickly, what was forgotten was the trade off.

To allow these mortgages, lenders applied ARM's (adjustable rate mortgages) which for all intensive purposes is criminal highway robbery!!

Thank the people who voted for Bush not once, but TWICE for this current mess were in!!!!!!!!!!!