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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Valuepro who wrote (287784)	10/29/2010 5:15:20 PM
From: tejek	Respond to of 306849

"it is a crime to give someone a loan that they can't pay back." No, it's crime to borrow money you can't pay back. Does a lender have to have any more social obligation than the grocer who sells steak to someone who should be buying meat loaf? Can't people be responsible for their own actions? Excellent point. What happened to personal responsibility? In this last real estate cycle, all players threw caution out the window thinking rising prices would continuously bail them out of their mistakes - lenders and borrowers alike. There may have been some borrowers who were too stupid or ignorant to know what they were doing, but I doubt it was the majority who now find themselves underwater. Ever heard of "liar loans"? You can't be an unknowing liar. Exactly. And all those people are trying to blame someone else for their stupidity and hubris.

To: Valuepro who wrote (287784)	10/29/2010 5:30:50 PM
From: ggersh	Read Replies (5) \| Respond to of 306849

No, it's crime to borrow money you can't pay back. Does a lender have to have any more social obligation than the grocer who sells steak to someone who should be buying meat loaf? Terrible analogy IMO. If I go to a bank and ask for a $1,000,000 who's duty is it to do due diligence? It was the banks that both gave and named the loans, "liar loans"! Sorry if you take this the wrong way, but if I'm the one loaning money out I would be damn sure the party I'm loaning money to has the ability and the collateral to pay back that loan!

To: Valuepro who wrote (287784)	10/29/2010 6:18:42 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 306849

VP forging Good faith Estimates is certainly a crime. What planet have you and tejek been on?

To: Valuepro who wrote (287784)	10/29/2010 8:24:39 PM
From: S. maltophilia	Read Replies (1) \| Respond to of 306849

<<No, it's crime to borrow money you can't pay back. Does a lender have to have any more social obligation than the grocer who sells steak to someone who should be buying meat loaf? >> Is it not also a crime to sell a loan you made to someone you're fairly sure won't pay it back, representing it as a legitimate security? Which crime is bigger?

To: Valuepro who wrote (287784)	10/30/2010 10:41:51 AM
From: Les H	Read Replies (1) \| Respond to of 306849

"In this last real estate cycle, all players threw caution out the window thinking rising prices would continuously bail them out of their mistakes - lenders and borrowers alike. There may have been some borrowers who were too stupid or ignorant to know what they were doing, but I doubt it was the majority who now find themselves underwater. Ever heard of "liar loans"? You can't be an unknowing liar." A lot of desperate people were pushed into refinancing their homes and pulling out the cash to pay off medical debts and other big debts that could've been discharged in bankruptcy court without losing their homes. Because of their financial circumstances with often no jobs and huge medical debts, these people could only get high interest rate loans on the new much higher loan balances that they had no hope of ever making payments on. They had no business being sold loans. The states tried to clamp down on the predatory lending practices but was blocked by the Bush administration on the grounds that these were national lenders over whom the states have no jurisdiction.