All of these things you are ignorantly accusing him of not having tried, he tried. Short sale, renting out rooms, loan remods...the works. He's been
going through this for a year. I talked with him at length today, not only him but people who have known him for years..his neighbors (you know like
the real ones who live next door) and he really has tried everything. He doesn't even want to keep the house.
So, if he doesn't want to keep the house, what's the point?
Listen, I understand that foreclosure is a painful process - I get that. And I do feel empathy for the borrower. But if he can't make the payments,
he needs to do the right thing - And that is, move on. Turn the keys over to the bank, vacate the property, and get on with your life.
So don't think your petty ideas of "Well he signed a contract, it's his own dumb fault" will ever get very far with me. Yeah...he signed a
contract. And yeah, he trusted that the banker was telling him the truth when he signed it. He's 53!! That's his generation. The trustworthy banker
and honest business.
It's not the bank's fault that the borrower didn't understand his loan contract. Even after the loan closed, the borrower could have taken all of
the loan documents to an attorney who could have easily explained his loan if he had any questions.
It's up to the borrower to understand what he is signing - Not the other way around. If he signed a contract - any contract - and didn't know what
he signed, then that is his own fault. Lesson learned. Get counsel. Read the fine print. Truly understand what you are signing.
The borrower took a risk - He was betting that the house would appreciate, and he could cash out later with a hefty check for the appreciated equity.
He gambled, and lost. The borrower was greedy.
Now, he wants to blame his banker, instead of his own greed, for his losses. If the house had appreciated threefold, I am sure he wouldn't have been
crying the blues.
The banker was a banker and essentially conned him into signing onto something with rosy promises of the future and fed him dreams of future home
Sounds more like a broker, not a banker. A sub-prime mortgage broker. These are the ones that were selling these sub-prime loans. Most retail banks
were buying this paper, not originating these kinds of loans.
Regardless of who exactly originated the loan, no one put a gun to his head and made him sign the contract.
He wasn't conned. Naive, perhaps. Stupid even. But not conned. To be conned, someone would have had to profit.
I can assure you that the bank isn't profiting from the onslaught of all of these defaulted loans. Hence, bank failures. Every Friday. Like
"Of course it's in the bankers best interests to get that loan paid back" How so, when they have essentially driven down property values through
bogus loan trading, created this foreclosure crisis and then bought up the foreclosed homes in huge lots for pennies on the dollar. It's having your
cake and eating it too and probably the most disgusting displays of callous economic barbarism in modern history
Sub-prime mortgage brokers, who wrote fraudulent loan applications, are the main cause of this crisis. They wrote fraudulent loan applications, as
did borrowers. They inflated people's incomes on loan applications, and outright lied about a borrower's income, capacity to repay, job history,
etc. They even doctored credit reports. Sometimes, borrowers didn't even exist - Hence the term, "straw buyer". Fraud on a massive scale to
Banks were defrauded by these brokers, and these borrowers. Banks wrote checks for $200,000 houses that are now worth $100,000, and the borrowers
have skipped town leaving the bank holding the bag. Banks got royally screwed in this process.
The formal term is mortgage fraud. The loser is the bank. The bank is who gets defrauded when mortgage fraud takes place. Unfortunately, there was
so much mortgage fraud, that there aren't enough resources to prosecute these crooked brokers and borrowers.
So, no, I don't have a lot of sympathy for crooked borrowers that lied on their loan applications, inflated their income, doctored their job history,
and now cry the blues because they can't afford a home they never deserved in the first place. A lot of these people never put any money down, and
never made a single payment, let alone pay property taxes and property insurance! Must be nice!
And, I might add, banks are NOT buying up foreclosed properties. Investors - and some big name Wall Street investment outfits - are buying foreclosed
properties, not traditional brick and mortar retail banks. Retail banks are doing everything to unload these properties as fast as possible, not buy
[edit on 4-5-2010 by CookieMonster09]