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patb.
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April 10, 2007 at 8:39 AM #8801April 10, 2007 at 9:17 AM #49649
kev374
ParticipantI’m sick and tired of people not accepting responsibility for their own choices. Yes, it’s a bad loan but she should’ve researched all aspects of it before signing the documents. How difficult is it to read up a little about the different loans possible and which ones to avoid? These stupid lazy people do not want to do any due diligence on their part and now start fingerpoint at everyone else except themselves.
Even if a loan officer tells someone a negAm is a good idea because home prices will appreciate it cannot be construed that he misled anyone because it is possible the loan officer is foolish enough to believe in perpetual appreciation himself!
April 10, 2007 at 9:56 AM #49653Borat
ParticipantEven if a loan officer tells someone a negAm is a good idea because home prices will appreciate it cannot be construed that he misled anyone because it is possible the loan officer is foolish enough to believe in perpetual appreciation himself!
Huh? So the homebuyer is to blame because they are stupid but the loan officer is NOT to blame because he is stupid? Sounds like somebody has been listening to talk radio. Everyone is to blame — borrowers, lenders, and whoever bought the MBSes. All of them are gonna ask uncle sam to bail them out. The media is setting you up right now to blame the homebuyers because the lenders and MBS holders want to get their bailout money from your tax $$$. As usual the little guys will get shafted and the big guys will get richer with your tax $$$.
April 10, 2007 at 10:00 AM #49655kewp
ParticipantThis is key:
Predatory lending. In this case, complex mortgage terms and interest rate risks were not fully explained as required by federal law. The borrower is usually the victim.
Assuming thats the case, the culpability is legally on the lender. Of course, victim proneness is always an issue.
April 10, 2007 at 10:27 AM #49659Anonymous
GuestBoth are to blame, but the woman is claiming that she is some sort of hapless victim. She signs an important document – one that will affect her life for 30 years – and she doesn’t even bother to fully read and understand it.
The next dude in the article, after learning his lesson from a bankruptcy, actually reads before he signs. All she had to do was that. If she had problems comprehending it, then she should have asked a friend who is familiar with legal documents or better yet, hired a lawyer.
People screw up because of greed, stupidity or whatever, then cry to the media about it and expect bailouts. People need to be responsible for their own actions.
April 10, 2007 at 10:28 AM #49658hipmatt
ParticipantKerrie Russo kept her New Jersey house but learned a costly lesson after signing up for a 'negative amortization' loan that she says she did not fully understand.
Sorry Kerrie, but you, like many others aren't a victim here. You bought a house in which you could not afford with a normal loan. You then took out a risky loan which would allow you to afford the payment for while. How is that hard to understand? Then the payment went up and now you are a victim? Boo hoo… Yes you are a victim of greed and stupidity.
April 10, 2007 at 10:41 AM #49660ParticipantDon’t forget that the mortgage companies are also victims of their own greed and stupidity. What did they think was going to happen when they made those loans? This is what happens when your country stops making things, it gets taken over by conmen who don’t know how to run an honest business.
April 10, 2007 at 11:25 AM #49664recordsclerk
ParticipantWhy would anyone loan money to someone who could not make payments for a traditional loan? The banks were banking on appreciation and so were the victims/homebuyers. There are no victims in gambling.
April 10, 2007 at 11:33 AM #49665ParticipantBorat, I’m in no way suggesting that loan officers are not greedy or predatory. Some definitely are. But the nature of aggressive salesmanship is a factor is all businesses. This is similar to the many foolish people who buy cars above MSRP but who is to blame for that? It’s a tough world out there and if you’re stupid you just don’t survive, end of story..I can’t feel sorry for stupid people!
What I am saying is that the consumer who fell for it is the biggest idiot of all and is in no way accepting that responsibility. A VERY big purchase like a home or a refinance requires VERY careful thought and due diligence by the consumer. Apparently this consumer was completely idiotic and signed whatever was presented in front of them after the loan officer finished with the sweet talking.
Secondly, some (not ALL of course!) loan officers in this business are totally inexperienced (never experienced market declines before) and themselves believe that a NegAm can work due to 10-15% annual appreciation offsetting the negative balance. If homeowners have thought the same way by extracting all their equity why can’t LOs think that way too by suggesting NegAms?
FINALLY, I have personally seen a NegAm contract. The DISCLOSURES ARE VERY CLEAR IN SIMPLE TERMS. This is a Fair lending requirement. You can only be excused for your stupidity if you can’t read English, even then you should’ve got a translator before signing. Most of these morons DIDN’T CARE when they signed, they just wanted the lower payments NOW thinking property will appreciate later. So they have nobody to blame BUT THEMSELVES!!!
Predatory sales is not something new, it’s been around since the dawn of man. It’s individual responsibility to research and guage what is good for them.
[end rant]
April 10, 2007 at 11:33 AM #49667cr
ParticipantThe problem has been the utopian hysteria mindset that home prices are on an infinite year over year increase at the ridiculous rates we saw from 2002-2005. We all know that. Both parties are to blame buying into this propaganda; the lender for lending money to people who are in collections with Domino’s pizza, and the buyer for thinking they could afford a McMansion on a McDonald’s salary.
You can thank the Democrats for bailout talks in an effort to secure the White House in 2008, but as the reality of this mess sets in, I really think there simply won’t be enough money to cover it. The war in Iraq has cost what, 400 billion? Resetting Loans are 5 times that just for 2006-2007.
LA Times had 2 articles today: one on bad loans outside Subprime and one on kev374
ParticipantWould also like to add that many LOs are definitely to blame and the industry is fraught with shady practices but I don’t believe for one moment that the consumer wasn’t a willing participant in this scam. Yes, a small minority may be true fraud without the knowledge of the consumer but in most cases the consumer knew something shady was going on but didn’t care to know…they just wanted the lower payment. Now they act like they are the victims and the LO is the bad guy? No, they are BOTH criminals equally!!
If you earn $40,000/yr and the LO is giving you $1200/month payments on a $600,000 home with zero down, does anyone on this earth believe those numbers actually work for the entire life of the loan? There isn’t anything shady in this deal? Or perhaps I am overestimating the intelligence of the American people. Perhaps many in our country don’t even understand basic math! Oh the humanity!!!
April 10, 2007 at 11:48 AM #49670ParticipantPeople will look back and ask how they could have been so stupid. I just hope responsible taxpayers aren’t burdened with giving the stupid people more money they won’t be able to pay back.
I don’t disagree, but just notice how the media is manipulating you already to focus on the buyers; while you are distracted they will bail out the banks and lenders with your moolah and leave the FBers high and dry. That’s the 3-card-monty play. The same thing happened with the new bankruptcy law a couple of years back. Everyone talked about irresponsible borrowers while in the background citibank (who was already enormously profitable) got handed that piece of legislation that will allow them to be even more profitable and do even more shady predatory lending to even more vulnerable people. It is true that the borrowers are irresponsible but these usurers need to be brought to heel or this will just repeat again and again. We are witnessing the looting of our country.
April 10, 2007 at 11:54 AM #49671PerryChase
ParticipantThat’s why we need to let the market clean itself.
When lenders go bankrupt, they’ll learn not to make stupid loans in the future. When borrowers go bankrupt, they’ll know not to sign stupid loans in the future. They’ll tell their children and grand-children to beware of stupid loans.
April 10, 2007 at 12:13 PM #49675Bugs
ParticipantBut the kids will still watch the hip-hop videos and aspire to the hip-hop lifestyle of being the thug and getting paid.
I’m afraid that living buck wild will be in fashion for a long time to come.
April 10, 2007 at 1:47 PM #49681kicksavedave
Participant“Like many borrowers who were sold mortgages they couldn’t afford, Russo says that when she called the broker to complain, she was told that because she failed to read the fine print, the responsibility for getting in too deep was hers.”
Damn strait it was!
“After coming up with about $14,000 to get out of the downward spiral into yet another loan, Russo says she’s learned an important lesson.”
“I have learned a new term called ‘predatory lending,’” she said. “And that is what I am a victim of.”
Oh Bull FCKNG SHIP!!!! You signed it, you didn’t read it, it’s YOUR fault that you didn’t like how it turned out!
All ya had to do was tell the LO, no thanks! But you would have actually had to read the document to know that now, wouldn’t you?
Screw these morons!
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