Upcoming Foreclosures

The real problem with the foreclosures in the US?

To me the real problem is not the mortgage companies willingness to deal out excessive loans it's Americans accepting loans that they can not afford. And now they are whinning to the government to bail them out of their financial mistakes. How about lets hold these people responsible for their actions instead of giving them a free pass. Your comments.

Public Comments

1. It's both parties' fault. The people who took out the loans didn't take the time to read what they were getting into, and the banks didn't care if these people would be able to make the payments. I want those people to learn their lessons, but I don't know if that is a good idea...It will end up hurting other industries too, like construction, and all of those stores (Home Depot, Lowes, etc). Overall though, it is in the banks' best interests to work with their customers, because they obviously don't want to take a million houses, and then have a hard time selling them.
2. I hope you'll appreciate an honest opinion. The real problem in the US is that most people are uneducated about these things. A bank will try to sell you as much as possible... but, it's up to you to decide what payments you are comfortable with. Also, why in the hell someone would buy a home with NO money down is beyond me.
3. I agree with you. However, some people are ignorant and so desperate to buy a home that they will take any terms. Some of these people don't understand that a variable rate is just that - variable - and solely controlled by the lenders whims. In my fiance's case, he is not educated enough to know how to read that sort of contract and his ex-wife was not trustworthy enough to actually pay the mortgage on time (she would often keep the money he gave her instead of paying bills). Even though they had a fixed mortgage, the interest rate shot up because the penalty for late payment was to raise the rate. Eventually, they had to declare bankruptcy in order to keep the house. Good things came out of it though: he kept the house in their divorce (in lieu of her being prosecuted for embezzlement), paid off the entire bankruptcy on his own, and opened the door to a much happier life with me!
4. I agree with you. But the companies, agents, promoters and banks should be as well. I'm tired of everybody passing the buck and all who were involved not paying the penalty too. They need to Quit selling a DREAM and sell Reality.
5. I have seen more than one person sell their home because the interest rate doubled in a year after refinancing. These people tell me they were not made aware of the rate increase. Some are able to refinance, but some are not for different reasons. I am seeing people struggle with mortgages because their gasoline, electric and gas and grocery bills have increased by 25 to 50%. In some states, homes were appraising for two to three times their values in a very short period of time. What about those appraisers, they should have known better. Real Estate Agents provide a service through their knowledge of all areas of buying and selling property, they should have known better. Same for Mortgage Brokers. How about holding all of these people responsible for their actions?
6. I think is a mix of not just the banks and homeowners, but as follow: The Buyer, Realtors, Lenders, Appraisers and Title companies, regardless of whether or not the buyer was educated enough to now what they were getting into, the chain of professionals working with them, had enough information to let the borrower know what they were getting into. The only way that this will not happen again is to regulate more and more the licensing of these professionals, in the financial world our job is to teach and help our clients how to achieve their goals, unfortunately not all of us have the same agenda. That is just my opinion
7. YOU ARE RIGHT!! It's the knucklehead that bought a house they can't afford and they knew it in the beginning. example: $1,500 mortgage for the first 24 months then goes to $3,000 and you make 45,000 per year. Idiots