Quote:
Originally Posted by msb3079
See i look at it the opposite way... i don't think those loans should even be available... for the most part... or if they are.. it shoudl be a law that it be disclosed on a seperate sheet in big bold letters... read aloud and signed.
is it impossible that some people may have been dishonest during the process and at closing?
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Of course, the act of lenders granting loans to "high" risk borrowers at the cost of excessive interest rates knowing that they will make more money off them when they default has been a scam that encompasses almost every type of credit lender for years, although the Adjustable Rate Mortgage is just latest incarnation of this questionable business tactic.
The bottom line: these borrowers should have never been approved for the loan, and most likely, they even knew that they shouldn't even be trying to buy a house in the first place, but the lenders saw an opportunity to make a "quick" buck knowing that the buyer would most likely default on their loan. These borrowers were never forced into the contract, and ultimately, need to be responsible for their own actions, regardless of the business tactics of the lender.
Something else to remember, if the government steps in and gets involved in buying these loans out or offering any sort of financial assistance, then you have the government effectively regulating just one more thing in our lives (although, any sort of regulation on big corporations trying to take advantage of people, isn't really a bad thing.)
