Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

Quick, Everyone -- Into The Foreclosure Sanctuary!

Recommended Posts

City Attorney Mike Aguirre has filed a lawsuit against Bank of America and its new subsidiary Countrywide. The central complaint of the suit appears to be that Countrywide engaged in fraudulent practices by putting people into high-risk mortgages and that Countrywide, as Aguirre put it in a press statement, "originated loans with little or no regard for the borrowers’ financial ability to afford the loans or to sustain homeownership" The suit is intended to prevent Countrywide (now Bank of America) from initiating foreclosure on any homeowner who has a high-risk mortgage and who actually occupies the home.
"If Aguirre wants to put a halt to foreclosures without changing loan balances, he won't help many people. And if he hopes to force reductions in loan principals, he could cripple the mortgage market..."
It's true that many borrowers were defrauded. But a lot more borrowers weren't defrauded. Most of the borrowers who have defaulted or will default on their mortgages are in that situation because they willingly took on high risk loans in order to buy homes that they couldn't really afford with the intent of profiting from home-price appreciation.
Whether these borrowers acknowledged it or not, they were taking a big gamble on the housing market. When that gamble didn't pay off, they bailed out.

A sizable subset of this group, incidentally, lied about their incomes so that they could purchase more expensive homes than the lenders would have allowed.

Do all these people really get to be in the sanctuary too?

Full article:

http://www.voiceofsandiego.org/articles/20...scano073008.txt

Share this post


Link to post
Share on other sites
It's true that many borrowers were defrauded. But a lot more borrowers weren't defrauded. Most of the borrowers who have defaulted or will default on their mortgages are in that situation because they willingly took on high risk loans in order to buy homes that they couldn't really afford with the intent of profiting from home-price appreciation.

Not quite true because those that where defrauded will have helped to push up house prices, meaning that those what weren't were still affected.

The bank also lent them the money on the gamble that house prices would continue to appreciate so they themselves are not innocent.

However I'm still waiting for the lawyers to figure out it's time to go after the FED for negligence.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.