Quote:
After a five-year boom, the housing market went bust last year. Higher interest rates and weaker home values clobbered homeowners, especially higher-risk subprime borrowers with adjustable-rate mortgages. Foreclosures and late payments have soared. Lenders have been forced out of business and hedge funds and other investors in mortgage securities have taken a big financial hit.
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these morgage lenders got what they should of know would happen . they used any and all outlets to give out there moneys. and im sure they a bunch were shady at best to prequalify the home or buyer. (i know of one group of loan sellers ) that would scam the lender and think nothing of it in the detroit area . they fudge the value of the home to get more $$$$ for the borrower. or they rearrange the borrowers net income .to get him a loan. knowing he couldn't make or keep the payments . and the lenders would only look at the end proffits. not what if are great money ideas back fired on us . they didnt care as most would sell the loans for a quick proffit to a bank in bulk deals. and the banks dont have the man power to check every buyer or home. that they bought in the bulk sales to make sure it's worth what the papers claim . so now they are sitting on a bunch of paper thats is to ruff even to use as toilet paper. when there billions on billions of dollars turning hands and everyones making money .who looks at a possible pit fall ?