As always they are very predictable-another half truth-the mortage process can be complicated and the borrower puts alot of trust in the individual representing the mortage companies........
2007-11-29 01:38:17 · 8 answers · asked by Anonymous in News & Events ➔ Media & Journalism
I think some people are too naive to make six-figure decisions, and trained professionals exploited that.
2007-11-29 01:40:49 · answer #1 · answered by Anonymous · 2⤊ 0⤋
I feel it is the fault of both the mortgage companies and the purchasers. The purchasers should be educated enough to know the differences with the loan options and if not should consult a real estate professional prior to signing. If the loan documents are too difficult to understand they should have invested a hundred or so for an attorney to look over the papers and decipher them for the purchasers in easy to understand lay language. This is a capatilistic society, buyer beware. Because a home purchaser was not educated in loan options is not the fault of the mortgage company or lender. If the home pourchaser gets into trouble financially it is the home purchasers fault. It seems ridiculous that someone would enter into the biggest purchase of their lives without understanding what they are doing fully.
Regarding the lending institutions, I believe that with the credit reports in hand and the financial history available and spending and paying histories also available then there should be better scrutiny on whether this potential home owenr could purchase. It has been the greed of the industry to sell a mortgage or loan that has exasserbated the situation and played on uneducated home buyers ignoarnce. However, ultimatley it is the home buyers responsibility to understand what loan options are out there and be fully aware of what they are doing. Otherwise, rent until they understand.
2007-11-29 01:45:12 · answer #2 · answered by sammie_miles 3 · 2⤊ 0⤋
The average person is incredibly naive and ill informed about money. They were exploited due to this inability to understand the mortgage process. May did not understand what they had signed up for. Or gambled that they would be able to refinance in 5 years before their rate went up.
The trouble is we are all being hurt by these bad decisions now because as homes are taken over by the banks, we have empty houses on our street lowering everyones property value and causing a glut of homes on the market.
2007-11-29 01:45:38 · answer #3 · answered by Anonymous · 2⤊ 0⤋
I think that is true, to some extent. When you purchase a house, you're "supposed" to understand all of the terms for your loan. (Your real estate agent or lender should go over this with you carefully so you do understand) A lot of lenders will pre-qualify you for an amount-maybe even double what you thought you could afford, but it's up to you to decide what you can afford. Don't just jump and buy a home at the most they qualify you for....remember these mortgage companies want your money too. Those who purchased with adjustable rates, knew (or should have known) their mortgage payment would go up.
2007-11-29 01:51:51 · answer #4 · answered by annabella0007 2 · 1⤊ 0⤋
It's both.
People didn't know their homes were going to depreciate. Plus people always think their wages are going to increase, they're going to save better etc.
On the other hand, there are predatory lenders. There are sharks who will take your money and/or your house in any bank, from the "lower credit" lender, to the biggest lenders in the country doing loans on mansions.
The big problem I have with the whole deal is when they start talking about us taxpayers bailing them out - which will happen just like Neil Bush's S&L swindle. Coincidence? A Bush was president during both. Hmm.
2007-11-29 01:45:39 · answer #5 · answered by doug4jets 7 · 2⤊ 0⤋
That's wrong; The crisis is here because of the lenders offering these 'smart A.R.M.' or 'baloon' type home loans. These loans only work when the housing market to continues to rise. Well, the bottom fell out and now tons of people are in forclosure and it's gonna get worse.
2007-11-29 01:41:39 · answer #6 · answered by Anonymous · 2⤊ 0⤋
It's certainly not ALL their fault, but to give them a pass is stupid as well. Americans are totally out of control in spending. We are getting into unbelievable debt and you can't just blame it on the guy that's willing to give you the money. You have to take some responsibility for your actions in life. If you don't have the income to afford to buy a new home... DON'T DO IT!!
2007-11-29 01:43:14 · answer #7 · answered by kathy_is_a_nurse 7 · 2⤊ 0⤋
I feel we trusted the Lending company and we got taken advantage of. Shame on them they should be responsible for loaning to those who they knew could'n afford it in the long run.
2007-11-29 02:43:31 · answer #8 · answered by openminded 6 · 0⤊ 1⤋