Why would people buy houses they can't afford :xJandurin
Because they're jerks, and in this consumerist era, it's all about your perceived value. Having an expensive home makes you look successful. Needless to say, if the woman had gotten a 200k home, she wouldn't be in this situation. Most likely, she was just paying off the interest in her mortgage payments.
Why would people buy houses they can't afford :xJandurin
maybe they could afford it at the time and was told that they could just refinance later at a lower rate. stuff like that happened as well because the agent still gets that commission.
[QUOTE="Jandurin"]Why would people buy houses they can't afford :xOntain
maybe they could afford it at the time and was told that they could just refinance later at a lower rate. stuff like that happened as well because the agent still gets that commission. One should be able to reasonably assume a certain level of ability, though. Regardless of what agents tell them.
[QUOTE="Ontain"][QUOTE="Jandurin"]Why would people buy houses they can't afford :xJandurin
maybe they could afford it at the time and was told that they could just refinance later at a lower rate. stuff like that happened as well because the agent still gets that commission. One should be able to reasonably assume a certain level of ability, though. Regardless of what agents tell them. the assumptions of the nearly all the professionals in finance turned out to be wrong as well. who could predict that their home would drop 200k in price and that there would be an economic crisis. we don't know if they would have been fine had those not happened.
This is why the economy sucks, not because of terrorist, or anything, its our own fault, mostly we really only have to blame our spending habits. Everyone wants to be like a celebrity, but without the finances to do so. Now I think the market with the people loosing there money because of liers can also be to blame, but it is still because people can't do the job they are told to do.
The markets are based on people being dumb they are expected to go up and down. I just don't think there was a plan or an expectation for things to get this bad. Great thread title by the way, only reason I entered this thread.
People are always going to be dumb. There is no way around it. I put more blame on the banks.
jsmoke03
word...how can someone get approved for a loan that big just driving a bus I like the story about how at one point World Savings (later bought by Wacovia, and then Wells Fargo) actually approved loans when they couldn't verify employment ... by photographs of people standing near a truck or something that claimed it was part of their self employed business.
People are always going to be dumb. There is no way around it. I put more blame on the banks.
word...how can someone get approved for a loan that big just driving a bus I like the story about how at one point World Savings (later bought by Wacovia, and then Wells Fargo) actually approved loans when they couldn't verify employment ... by photographs of people standing near a truck or something that claimed it was part of their self employed business. hahaha how stupid can some of these people b? or should i say greedy....
[QUOTE="jsmoke03"] word...how can someone get approved for a loan that big just driving a busjsmoke03
I like the story about how at one point World Savings (later bought by Wacovia, and then Wells Fargo) actually approved loans when they couldn't verify employment ... by photographs of people standing near a truck or something that claimed it was part of their self employed business. hahaha how stupid can some of these people b? or should i say greedy.... Well if you're just originating the loan, then packing it up in some securities that you sell. All you are concerned is with is getting the loan done and sold because that is when you get paid... after that nobody cared.
Well if you're just originating the loan, then packing it up in some securities that you sell. All you are concerned is with is getting the loan done and sold because that is when you get paid... after that nobody cared.duxup
[QUOTE="duxup"]Well if you're just originating the loan, then packing it up in some securities that you sell. All you are concerned is with is getting the loan done and sold because that is when you get paid... after that nobody cared.Jandurin
Sounds criminal. Well some were. They couldn't even get people to qualify under the INSANELY loose limits there already were so they lied. Often without even telling the home owner.
I'm not going to blame them for taking out the loan for the house. it's the "american dream" and if someone is stupid enough to lend you that much and tell you that you can afford it who are you to question :P but really i don't want my taxes to have to "save" these ppl. then again in some ways i'd rather they have it than the ppl that made money making these bad loans. all the top guys in these bail out accepting companies are just as responsible if not more so because at the end of the day those ppl still made millions while we clean up the mess they made. they don't really get punished at all.
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