BrainKing - Panouri de discuţii (Politics)

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17. Martie 2009, 20:23:08

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Subiectul: Re:first of all these banks were forced to make bad loans

(V): "The banking industry made a practice of talking people into buying homes they couldn't afford."

Doesnt sound right to me either... as far as i know, banks arent even involved much until a person has picked out a home to buy. Except to get pre approved, as far as I know, its usually the people trying to tell the banks that they can afford more house than is really true. So banks are like, sure you want a loan for this house without documentation, okay, pay us a higher fee and higher closing costs and a higher rate and we will do it!

Fine for many, and okay if housing prices are going straight up, but if you have a loan default and the market will not recoup the cost of the home in a sale.. well thats a problem, not to mention some of the appraisers were also jacking the appraisal price up to meet the loan standards as well.

Funny how many times the house asking price and loan amount is something like 200k, and amazing enough, the appraisal comes in at that exact amount! Again, ok when house prices are on the rise, but not so good when they arent and people end up upside down on their house loans.

anyway... what is the solution? Can anything really be done at all? Should we make it not possible to be a bit more creative when prices are on the rise and the economy is good, just to offset when things go south? I am not sure I can buy into that either!

I think it is s symptom of simply the way things are, and too bad so sad....

I know people who were building houses and selling them for a profit before they had even begun construction and even some sold again for a profit when it was being built. Well, if you choose to play that game fine, but those things never last forever, and dont come complaining to me when things go south and you cant even find a buyer years after the construction is complete! Its just the way of the world, all this knee jerk reaction every time we hit a bump in the road, doesnt make any sense to me. Get over it already.. there will always be highs and lows, get over it and move on already.