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

To: ggersh who wrote (287788)	10/29/2010 5:43:32 PM
From: Valuepro	Read Replies (1) \| Respond to of 306849

"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!" But Congress effectively tied you hands and told you to lend to anyone who applied, lest you find yourself in trouble for discrimination in some form or other.

To: ggersh who wrote (287788)	10/30/2010 1:34:23 AM
From: Skeeter Bug	Respond to of 306849

>>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!<< the ENTIRE POINT of the loan was CREATE A DEFAULT. 1. the banks gave the bad loan ON PURPOSE - the worse the loan the better. 2. the banks got it fraudulently rated AAA. 3. the banks bought multiple CDSes betting the toxic waste would default, but paying AAA rates for the insurance. 4. the banks securities the mortgages. when a $500k loan defaults, the banks get a check for $2 million from the CDSes (assuming 4 policies) and the actual home itself. the only problem was they lost the right to foreclose by screwing the pooch on the paperwork - and the lawsuits will fly right now.

To: ggersh who wrote (287788)	10/30/2010 1:35:46 PM
From: Pogeu Mahone	Read Replies (1) \| Respond to of 306849

No bonus for you!-g-

To: ggersh who wrote (287788)	10/30/2010 9:36:31 PM
From: Neeka	Read Replies (1) \| Respond to of 306849

I gave your post a rec ggersh because to possess honesty and integrity are more important than anything else a man can do.

To: ggersh who wrote (287788)	10/30/2010 10:10:43 PM
From: skinowski	Read Replies (1) \| Respond to of 306849

If I go to a bank and ask for a $1,000,000 who's duty is it to do due diligence? Banks made money on issuing loans, but soon their responsibility - and exposure to risk - would end, as they would unload them to government sponsored entities. The bank would no longer have its a$$ on the line, and that's where, it seems, was the breakdown in the system. There was plenty of financial motivation to issue loans -- but not to do DD. Part of it was the bubble mentality -- who cares if the guy can't pay.... everyone knew that real estate can only go up. Take it back and sell it for more. No fear.