Quote:
Originally Posted by will2power
You act as though there is no consequence to the banks for people defaulting on their loans. You're forgetting of course that the bank that made the loan, paid the full cost of that loan to whoever was selling it minus whatever was left on their loan due to the mortgage company that holds the title. Banks DON'T WANT YOU TO DEFAULT ON A LOAN! It's money lost for them too. Foreclosure is expensive, and they run the risk of not recouping the cost of the loan when that happens. When you default on a loan, the bank has to absorb the cost of your mistake.
And what about the other people who have had their homes foreclosed on prior to this? In the 200 plus years of buying and selling land and homes in this country? Should the government pay for them too? The only difference between today and yesterday, is that people back then didn't whine about their misfortune--they tucked their chin, and got on with their lives.
In the end, it's your responsibility. You chose to take out the loan. No one forced you. No one swindled you into it. Take a little personal responsibility, learn from your mistake and move on.
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I am not disagreeing with you. But I am saying that the banks should have been perhaps a bit more circumspect in who they loaned to and what product they were using. It is an amalgamation of both party's greed and desire that led us here. I absolutely agree that in the end the individual should have made a smarter decision but the banks should have too. To blame only the individual is to negate the fact that you did have some predatory lenders looking to sell loans that were risky at their inception. A 5/1 ARM based on the LIBOR is intrinsically unsafe and was a product that was offered to me by a mortgage broker. I had the good sense to refuse, but not everyone is as smart as me (just kidding, I'm stupid...) Yes the individual should have been better educated, more prepared, less naive, whatever. But the banks do share in some of the blame. of course the banks don't want you to default but, as I cited in my earlier post, they aren't making it easy for the average schmo to get themselves out of the pickle either.