"Victims"??? More like opportunists who are now being called on their stupid lending practices. The lending institutions & the people taking out the loans KNEW they couldn't afford to pay the mortgages once they ballooned. It was all a game. Now those of us who didn't "play the game" have to pay for it???? BS. No one comes to my defense when I make a bad trade. No one should come to their defense. The borrowers DESERVE to be out of their houses. The lending institutions DESERVE to go under. Those entities & transactions never should have existed in the first place. The fed cutting interest rates won't solve the problem. The "problem", which was actually done years ago by the lenders, will now work its way out & those who supported those mortgages will have to pay. Too bad. No one forced them to do those transactions. Stop acting like children. Pay for your mistakes.
No, not all of them. Many are young families, first-time buyers, who were truly victimized by unscrupulous RE brokers or lenders. Some buyers were led to believe their teaser rates were fixed for 30 years. Some buyers were not told about negative amortization. Some buyers were victims of fraudulent sales and lending practices -- that is well documented, and those victims are left holding the bag because the fly-by-night mortgage lenders are probably out of business now. There is no one to sue, no one to collect damages from. Part of the blame for the mortgage mess lies with our government. They were negligent for not having reasonable regulations in place to protect buyers (and the marketplace) from liar loans, neg amortization, etc.
Bullshit. If you're too stupid to read the documents you're signing when making the biggest financial transaction of your life you deserve what you get. If you're too stupid to do due diligence when entering into a contract you deserve what you get. If you're too stupid to conduct yourself with the rest of the adults in the world you deserve what you get. opm8
Mortgage and Real Estate are cyclical industries, its usually a 7 year cycle. It started in 1998 and ended in 2005 and it will have down turns for a few years and come back so viciously that the demand can not be met and things will fly off the hook. It explodes like a neutron bomb. Where else do you think this pent up desire of not buying house for few years will go? Been there done that twice.
Hmmm... So it's not the buyer's responsibility to understand the transaction? Wow. Well documented? Links please? Can you explain what 'reasonable regulations' could possibly prevent sharp practice among lenders who are dealing with buyers who don't know enough about the process or the various ways in which they need to protect themselves? Possibly the government should review every transaction to ensure that the lender is not engaging in 'liar loans [whatever they might be] and neg amortization'? The key word here is prevent. I cannot for the life of me figure out how the government could prevent this. Punish lenders who defraud, sure, but prevent them from engaging in business with a willing participant? (This is assuming that anything you mentioned is actually illegal, which is not clear to me. Uncrupulous possibly, but illegal? If I sell you a car for $50,000 but the car is worth $10,000, that's not illegal. It just means that you overpaid.
they should just walk away from the home...go rent save money and start over... working like a debt slave is for the birds...
Gimme a break, Buyers were just plain GREEDY to get in on the home appreciation angle. No Government bail out, please!