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Originally Posted by Shadow
While it's true that the some lenders were forced into making subprime loans, as we're seeing now, many lenders and mortgage brokers actually committed fraud when dealing with the banks and such.
I agree that the banks/mortgage companies that were forced into subprimes should have access to thier property; however, it's getting harder and harder to separate the wheat from the chaf out here 
Then again, as I mentioned in my earlier post, if an otherwise upstanding citizen should suddenly and without cause or effort of thier own, fall upon financially hard times, should the banks and lending institutions at least try to work with them?
It's like the credit card companies...we want, we want, we want....but you only have so much blood.
A little negotiation would or could have prevented a huge part of this financial mes we're in....among other things.... |
It is true, some mortgage brokers (not lenders) did break the law but those were isolated cases and there were/are laws that they were prosecuted under. Who else should pay for their crime, the honest ones or the tax payers? And in most cases the extent that they broke the law was by request of the borrower. But that in no way was contributing the our current situation in any significant way.
Should lenders try to work with the borrowers? ABSOFREAKINLOUTLY! Lenders never worked like that before. Don’t pay, get out. But now because of the number of defaults they are working a little harder to try other options. It’s better for everyone if something can be worked out, or at least tried to. They are only now figuring that out, too late for some and too late for us who were sitting on the sideline watching this collapse around us. But as you have seen, even changing the terms of those loans didn’t help as most of those still ended up in default.
Now, our wonderful gubmint is trying to crap up the works even more with the “cram down mortgage” bill being discussed. You loan $200,000 secured by real estate, the borrower doesn’t pay. You ask the judge to allow you to foreclose and take back the property. The judge decided that not only is he not going to grant you that foreclosure but he thinks that the mortgage principle should only be $100,000 because that’s all the borrower can afford. Sucks to be you and you then get out of the very risky mortgage business. That’s going to go a long way to help us who play by the rules.