[quote=spdrun]I disagree. If people know that they will be foreclosed on if they don’t pay their loans (without a damn good reason), they’ll be less likely to take overly high loans in the first place.
Banks are not in the business of providing comfy places to live to trailer trash. 2008 was as much a fault of the losers who took the loans as of the banks and Fannie.
Lending standards were about right in the 80s. If you couldn’t show 20% down and income or assets, no deealio.[/quote]Agree, spd. This is a very apt description of the problem in CA.
Fortunately, a borrower can no longer choose to take a “overly high loan.” The lender they applied to will tell them how much they qualify to borrow and this is how it should have been all along.
All this “trailer trash” can do what they do best after foreclosure … that is, go find a well-used trailer to buy and a place to park it and skirt it. OR, just go rent a trailer that someone abandoned and left in an established trailer park. Um, unfortunately, for them, that won’t likely be in a CA coastal county but this isn’t my problem, either.
