GoFuckYourself.com - Adult Webmaster Forum - View Single Post - "They feared they could not pay, but signed they say, under pressure"

kane · 04-06-2008, 02:26 PM

It used to be that getting a mortgage was a hard thing to do. They scoured your credit and you had to explain every little blemish. You needed a down payment, a solid work history and they needed to know that you were able to pay back the loan. I had been told several times banks wanted to keep your mortgage payments at or around 25-30% of your monthly income. In the last 6 years or so that has changed. Now they will sell to anyone that is breathing. There are a lot of people to blame here and we all now paying the price.

I think a lot of people spent more than they could afford figuring that they would live in the house 4-5 years then sell it or refinance it when the variable rate became unlocked and went up and they would walk away with some cash in hand. What they didn't plan on was that millions of other people had the same idea or just didn't understand what they were getting into. A friend of mine lives in an area where they have a ton of new houses. 5-6 years ago they sold everyone of the houses in the development before they were even built. Now, literally, 35% of them are for sale. He laughs because the houses on both sides of him and across the street are all for sale it makes him look like he has a haunted house or something. It is driving down the value of all the houses in the area.

What pisses me off is how the media is making it out to be the banks fault solely. They seem to take the slant that these people that are being foreclosed on are victims. The reality is both are reaping what they sowed. The bank lent money to someone they knew might have trouble paying it back and the lender bought more house than they could afford and now they are stuck together.

I'm of the opinion that the white house and the fed reserve worked hard in 2000-2001 to lower rates which artificially inflated the housing market and set off a housing boom. This help lift a flagging economy and made things appear to be better than they were. Very little was actually done to strengthen the economy and now it is biting us in the ass and there is no little band aid they can put over the gaping wound we are starting to see appear.

04-06-2008, 02:26 PM
kane Too lazy to set a custom title Join Date: Aug 2001 Location: portland, OR Posts: 20,684	It used to be that getting a mortgage was a hard thing to do. They scoured your credit and you had to explain every little blemish. You needed a down payment, a solid work history and they needed to know that you were able to pay back the loan. I had been told several times banks wanted to keep your mortgage payments at or around 25-30% of your monthly income. In the last 6 years or so that has changed. Now they will sell to anyone that is breathing. There are a lot of people to blame here and we all now paying the price. I think a lot of people spent more than they could afford figuring that they would live in the house 4-5 years then sell it or refinance it when the variable rate became unlocked and went up and they would walk away with some cash in hand. What they didn't plan on was that millions of other people had the same idea or just didn't understand what they were getting into. A friend of mine lives in an area where they have a ton of new houses. 5-6 years ago they sold everyone of the houses in the development before they were even built. Now, literally, 35% of them are for sale. He laughs because the houses on both sides of him and across the street are all for sale it makes him look like he has a haunted house or something. It is driving down the value of all the houses in the area. What pisses me off is how the media is making it out to be the banks fault solely. They seem to take the slant that these people that are being foreclosed on are victims. The reality is both are reaping what they sowed. The bank lent money to someone they knew might have trouble paying it back and the lender bought more house than they could afford and now they are stuck together. I'm of the opinion that the white house and the fed reserve worked hard in 2000-2001 to lower rates which artificially inflated the housing market and set off a housing boom. This help lift a flagging economy and made things appear to be better than they were. Very little was actually done to strengthen the economy and now it is biting us in the ass and there is no little band aid they can put over the gaping wound we are starting to see appear.