What is your opinion on the huge crisis in home owner lending? Are the main crooks going to jail?

The over valued home loans deserve major prison sentences IMO. One guy made 4.5 billion is serving 4 yrs. and pays back 2B. He'll still be a billionaire after prison.


Should the buyers have been more astute about the loans?


If you can afford to buy these foreclosed properties for a song is it ethically wrong? Someone is going to buy them.

What is your opinion on the huge crisis in home owner lending? Are the main crooks going to jail?
It's a huge scam. I remember when my parents died and they had the value of their home listed....one I live in now...and pay taxes on.......they said it was worth 280,000 dollars. I laughed......said no-way is this house worth that....I was told LOCATION, location, location.....value would only go up. Within the first year it dropped 100,000. But I'm still taxed on the upper amount. It's dropped 20,000 since then......due to location, location, location......





People were duped into going beyond their means because rent was so high.....now it's a vultures dream. No, the real criminals aren't suffering. Nor are any of these McMansions worth what even the low price is. They are so cheaply made you will re-building it from the ground up in less than 10 years. These beautiful condo type complexes will be the new "projects" in no time. I know here it is really nice looking JUNK that people are stuck with.....going insane trying to save....than will be fall apart dumps in no time. I don't live in a McMansion.......more less a "habitate for humanity" house. No basement...no frills. It's a major scam all the way around. Supposidly I can rent it for almost 2,000 a month.....I don't think it would survive a family with children. Heck it's falling down around me as we speak. Wasn't always like this.....this was the result of re-building after a massive tornado. Junk...pure junk.
Reply:no different than the Corporate Raiders of the 70's. Remember mr. junk bond himself ..Michael Millican ?.....see it's been so long I can't remember myself. Stole 400 million , paid a 200 million fine, did 4 years in Club Fed.Oh yeah, the SEC took his 'traders' license away....but could still sit on a board as an adviser. The guys going to jail now, don't worry they will buy a presidental pardon from G.W. BUSH..who say's crime doesn't pay ?....your mother lied to you.
Reply:Buyer beware ! Unless you were one of the glorified thieves that took place in the disaster, there's nothing wrong with purchasing foreclosed property -- again Buyer Beware of the thieves you deal with lest you be stuck holding the bag.
Reply:banks say no for good reason. pity some people won't take no for an answer. Those writing the loans will prob never pay for the harm they've done, but I would regard all such as inherently corrupt and never employ them.
Reply:I don't think ethics are practiced in today's business world. I think the bankers got greedy. They extended loans to people who were financially unable to keep up payments. Good enough if a few banks go under. We have plenty of banks around here. It's interesting that many bankers have "friends" they notify when a property is foreclosed on. These vultures get a very low price on homes and vehicles too.
Reply:The crooks should go to jail for misrepresenting a home.
Reply:My biggest gripe is why make home loans so complicated? It used to be loans were fixed and percentages that any moron could figure. So, either you could afford the monthly payments or not...there weren't any balloon payments or other nonsense to get in the way of realistically and logically knowing whether you could afford the house you were about to buy from the beginning to the end. And a bank or mortgage company wouldn't loan you the money if you could not make the payments...simple economics 101, no make that 1!
Reply:Put the blame where it belongs! Idiots bought homes they couldn't afford and now want you and I to bail them out.
Reply:first of all i would like to hear more about the guy going to jail -- is this a fact or something someone dreamed up = i would say dreamed up -- the main crooks is the system that allows folks who should not be buying house able to get loans -- who every dreamed up interest only loans and arm's was a great business man -- but these loans are only for fools -- suckers who are willing to put there future on the line just to be a home owner!!! in the time of easy credit and folks not worrying about paying bills do not blame the lenders!!! as for some one stepping in and making a profit on the fore closers here again it is just good business and there is nothing unethical about making a great business deal!!! if i came to your house right now with title to my car in hand and wanted to sale it for $25.00 because i no longer could afford it every one on this site would be breaking their necks to come up with the $25.00 !!!!
Reply:Those interest only loans are good for 5 years Then they have to refinance. Two years ago every one was buying home and bidding on them. Three years from now they have refinance. Every one will foreclose . I Think the bank should let these people refinance at alower interest rate to save the country but they wont sorry for my spelling
Reply:OK, so these teaser mortgage rates are a real "come on" but where is personal responsibility in all of this? People do not want to wait for what they want. They want it now....no matter what. When I was in the market for a home, the lenders keep telling me I could afford a grander home....I knew that I would be house poor if I followed their advice so I bought within my means. People can only be taken advantage of if they allow it. The old addage: "if it seems too good to be true then it probably is" rings true here, as does "buyer beware."
Reply:Who's the guy serving 4 years for home loan fraud? There's no way anyone has been convicted yet, no less than a billionaire that can afford to throw lawyers at a problem forever. This home loan problem was more of a mess by the loan agents that didn't tell the homeowners what was going on, then the brokers who bundled the loans together and dumped them on the securities market.


As long as people keep having kids, and people keep immigrating here, there's going to be an increasing demand for homes. I don't think it's ethically wrong to buy a house in foreclosure. You'll probably actually be helping.
Reply:%26gt; huge crisis in home owner lending?


My opinion is that Congress should just outlaw the "teaser rate mortgage." All mortgages should start at their actual rate, because there's no guarantee that someone's going to be making more money 2-5 years from now, and no guarantee that the owner will be able to refinance 2-5 years from now.





%26gt; Are the main crooks going to jail?


Nope. The problem is that they're not crooks. There wasn't any law against the incredible stupidity and greed that was going on 1999-2005.





%26gt; Should the buyers have been more astute about the loans?


Yep.





%26gt; If you can afford to buy these foreclosed properties for a song


They're not being sold for a song.
Reply:Once a crook always a crook they will always find a way.


Best thing to do is know who your lender is.


Yes they will always be the ones to buy them..what happens most of the time the man with the money sits back and watches for it to keep dropping then steps in and buys.
Reply:That is a great question! My son and his partner both 2 properties in South Florida for quite a bit of money. Now these properties are devaluing rapidly, they have been on the market for over a year, with no one interested in purchasing them. They are 5 and 6 bedrooms each. They still make the payments, most of it is interest, plus the high property taxes. I had advised NOT to purchase another home for investment value, but kids do not listen. They are "cash" strapped do to overvalued property, now rapidly decreasing in value. There also is a huge surge in properties for sale out there, people are looking for good deals. mortgage does not support selling at a loss, just to get out from under it.. They also purchased in a gated community, where there isn't much exposure for someone looking for a house as you can't just drive through a neighborhood and see a house and fall in love with it.
Reply:money money money--come and take my house after i burn it to the ground and collect the insurance.





greed by bankers to make billions more then they already making. forecloses, pity that the government can run a war for trillions of dollars and not assist the average home owner keep their property. what is this country coming too?
Reply:In my humble opinion, this scheme was cooked up and allowed so that the War could take place and the US would use it's real estate to keep the economy afloat. Now that it is falling apart the Govt. is going to allow people to have other means of refinancing these homes, so that the War can continue. This is an over simplified answer but it is true. I mean think about it, who is really benefiting from the war...anybody care to take a educated guess? Those who have invested interest in oil, are the same with invested interest in rebuilding Iraq. I wish the youth of today would do what the youth of the 60's and 70's did more of and it ain't drugs! lol!





As for buying a house at a lower amount...that is the name of the game and even before this problem it has always been the name of the game, in fact maybe that is where the Monopoly Game name originated from! lol! Go for it!

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