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If it sounds to good to be true…

March 8, 2009

From a Washington Post article:

In the past year alone, the number of borrowers who failed to make more than a single payment before defaulting on FHA-backed mortgages has nearly tripled

How do you POSSIBLY end up in a situation where you purchase a home and can’t even make one payment?

Everyone, it seems, is making the claim that it is predatory lending…they just “tricked” people into taking these loans. Well, I know that unscrupulous lending is going on, but on the other side of that coin is the fact that people allowed themselves to be duped into it.

You don’t get something for nothing. If you have no money, no credit, and possibly no job, what makes you think someone is honestly going to give you a great loan?

I think the blame game goes both ways. Certainly these lenders who were duping borrowers and the system need to be stopped…but we can’t forget that a great number of borrowers simply put blinders on and took on mortgages that I’m sure in the back of their mind they knew were too good to be true.

There’s a lot of “creative” lending out there for people who need it…but when it boils down to it, at the end of the day you have to have the income to pay that mortgage.

Now, if they can prove that these lenders deliberately deceived these people and they would have no way of knowing what they were getting into…well that would be a different story. But I just don’t think that’s going to happen, because I think a majority of people did know they were walking right into a losing situation, and they did it anyway.

And I don’t particularly feel like paying for their mistake. I have my own mortgage to worry about…one that I entered into responsibly and pay every month…what a concept.

~T the D

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One Comment leave one →
  1. The Ripley Porch permalink
    March 8, 2009 2:40 pm

    By the end of 2009…I think half of the population will have mortgage issues. We will eventually get to a point where the banks don’t care….there’s no buyers and no credit to offer. The truth is that the stimulus package and the government effort to prop up the mortgages and banks…are going nowhere.

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