Why ppl can't pay their loans and we have more foreclosures?
2007-11-18 10:43:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Check out Jon Markman's article: "For a Few, Credit Pain Means Profit" dated 11-15-2007 on the MSN Money website
2007-11-18 11:29:10 · answer #1 · answered by LUCKY 4 · 0⤊ 0⤋
Lenders offered ARM loans which were scheduled to rise in interest rate after a few years, and a whole pile of buyers were gullible enough to take those loans. Which was more stupid....the buyer or the lender ? Flip a coin on that one.
2007-11-18 11:20:48 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
The same thing that causes all crisis. Stupid people. People who thought it would just go up and up and up. Also let's not forget the bankers who were stupid enough to give people you and I wouldn't loan five bucks to enough money to buy a house for a quarter million dollars.
2007-11-18 10:53:38 · answer #3 · answered by jds792 3 · 1⤊ 1⤋
Main reason is a corporate greed.
And depends on who is eveluating the situation now is the best time to buy real estate.
2007-11-18 10:50:17 · answer #4 · answered by StanTheMan 6 · 1⤊ 1⤋