to me. Everytime big business does something wrong or a certain plan of action doesn't work out, dem's want to attack big business and hold the little guy harmless. What would America do without the hand outs dem's always come up with to bail them out.
How about they share the responsibility? The Lenders made these loans knowing or at least suspecting there would be issues down the road. The borrower's took out the loans knowing or at least suspecting they wouldn't be able to make their payments when the ARM kicked in. Many of my closings, the BO has stated they figured to start with the ARM for a few years then re-fi later. Only problem with that, you can't foursee every obstacle that will grace your path. And to top it off, An inflated housing market finally starts leveling off and correcting itself.
This mess did not happen over night, and it won't be solved with a bandaid. There needs to be some serious corrections made to the process.
Personally, to me, rather than foreclose on properties and take the loss when you have to sell below market value, I think the Lenders would be better served refinancing these loans at a better interest rate making it affordable for the BO to keep the home. The Lenders still make huge profits and the Bo still has a home. Everybody wins. Simplified?? Perhaps, but does everything we do have to be complicated? Instead of being greedy and trying to make maximum profits, why not make a good profit and make yourself out as the good guy. You have helped someone keep their home, isn't that the idea anyway?
I've never understood why Lenders make one person pay more than another in interest for the same product. If I charge one man xx.xx for a printer, then turned around and sold the same printer to another for xxx.xx because he was different in some way, wouldn't I be breaking the law?? Discrimination??? Why is the lending market any different than any other business?? I know it's based on your credit history. But that is also discriminating. It favors one over another. I don't necessarily think that credit history is irrelevent, but it does discriminate against those who make less money. Those less able to pay their bills in a timely manner or unable to afford them at all, i.e medical bills, are penalized because of their status and thus end up paying more for their home than others with more income. If they ( the lenders ) gave the same rate of interest to everyone, there would be a lot less foreclosures and more Americans owning their homes. Just an observation I have been contemplating. |
