Did you notice how many politicians and CEOs of different financial institutions blame people for their foreclosures and that they were not supposed to be given mortgages/loans in the first place? Let's see, if someone worked at GM or Chrysler and had a good salary and what was a pretty stable job in the past, with over $40/hr, and they suddenly lost their job because of a bad economy and outsourcing work to foreign countries, how is this person responsible for their own misery? They say that 1 in 54 homes in the U.S. are foreclosed. They are going to tell me that all of these people did not deserve to get a mortgage? Maybe some of them were not financially stable when they got their mortgage, but not all of them and this is not the reason why the economy is bad. The big shots should cut their bonuses and greediness and start taking responsibility instead of blaming innocent people. According to them, no one should have owned a house unless they had $500,000 on their bank account. In that case, you do not need a mortgage or a bank for that matter, you can just go and buy your house.
Banks and lenders blaming others
- Thread starter Boxer100
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There were a lot of shaky mortgages made, but that's on the lenders who approved the mortgages, not the people who applied for them. It's the lender's job to make qualifying decisions on loans.
The bankers and lenders need to quit pissing and moaning and whining and suck it up and realize THEY fscked a whole lot of people. It's time some bankers lost their homes.
The bankers and lenders need to quit pissing and moaning and whining and suck it up and realize THEY fscked a whole lot of people. It's time some bankers lost their homes.
Individuals also need to take some responsibility in this. Loads of credit card debt, living paycheck to paycheck, applying for mortgages they can't afford? Sorry, banks aren't the only ones responsible.
Hopefully after this mess is over people will learn to be responsible with their money and stop trying to compete with the Jones'. But that's just wishful thinking.
Hopefully after this mess is over people will learn to be responsible with their money and stop trying to compete with the Jones'. But that's just wishful thinking.
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yes som' people did get laid off.... but lots and lots bought ALOT of house.
Perhaps americans should learn to moderate their spending and buy the 300,000 house and not the million dollar one. In california people dropped alot of money on huge houses when they could have lives just as comfortable in moderation.
Perhaps americans should learn to moderate their spending and buy the 300,000 house and not the million dollar one. In california people dropped alot of money on huge houses when they could have lives just as comfortable in moderation.
This is true.
People really do have a lot of responsibility in this. A banker canNOT know exactly how you spend your money.
You can have 2 different people who both make $500,000 and say they are both applying for the same amount of mortgage. ONE of those people may be able to pay the mortgage with no problem. But just because the other person makes the same amount, doesn't mean they don't have bad spending habits. So that person's spending habits can mean that with their lifestyle they really CAN'T afford it, but their "income" says they can.
Unless bankers start handling your entire budget for a year before giving you a loan, they will never know exactly whether or not you can afford it. If YOU can't afford your house, don't blame it on the bank who gave you the loan. Take responsibility for the fact that only YOU and YOU ALONE can entirely know your financial situation and whether or not it is something you can afford.
Sorry but yeah some people have recently lost their jobs and it causes them problems. But they didn't just start randomly loosing jobs, the economy going bad had to start somewhere. And the foreclosures started before so many people started loosing jobs.
But of course the American way is to always blame everything on someone else, as stated before. And also the American way is to expect everyone else to take care of it for you.
People really do have a lot of responsibility in this. A banker canNOT know exactly how you spend your money.
You can have 2 different people who both make $500,000 and say they are both applying for the same amount of mortgage. ONE of those people may be able to pay the mortgage with no problem. But just because the other person makes the same amount, doesn't mean they don't have bad spending habits. So that person's spending habits can mean that with their lifestyle they really CAN'T afford it, but their "income" says they can.
Unless bankers start handling your entire budget for a year before giving you a loan, they will never know exactly whether or not you can afford it. If YOU can't afford your house, don't blame it on the bank who gave you the loan. Take responsibility for the fact that only YOU and YOU ALONE can entirely know your financial situation and whether or not it is something you can afford.
Sorry but yeah some people have recently lost their jobs and it causes them problems. But they didn't just start randomly loosing jobs, the economy going bad had to start somewhere. And the foreclosures started before so many people started loosing jobs.
But of course the American way is to always blame everything on someone else, as stated before. And also the American way is to expect everyone else to take care of it for you.
So what happens if someone bought a home and 3 years later they were laid off? How could they predict the future? They do not have a magic ball. Even if the people that were laid off wanted to sell their houses, they cannot do it now without losing a lot of money. The economy going bad started when billions of dollars were spent on the war (nothing is produced in a war, only loss occurs), and not on things that will keep the economy stable like investing this money in the production sector.
What we're missing is the findings that these banks, during the housing boom, (which has been artificially manipulated) have been making unsound loans to buyers who did NOT have debt:income ratios within the accepted bounds. And it's not just the housing loans that have undermined the banks; there is so much money tied up in loans to commercial concerns that have tanked in the wake of mismanagement. And then there is the growing group of people over 65 who had plenty of money set aside for retirement . . . in company funds, 401ks, etc., who have seen their retirement funds dwindle to nothing.
It's a house of cards, and even though some individual homeowners do bear some responsibility, they're only the crest of this wave of financial disaster, a disaster fomented by the avarice of corporate America and it's wh0re, our government.
It's a house of cards, and even though some individual homeowners do bear some responsibility, they're only the crest of this wave of financial disaster, a disaster fomented by the avarice of corporate America and it's wh0re, our government.
Banks did not up and decide one day to make loans to people that didn't deserve it...IMO some gov't programs also helped that along.
I don't agree with much of that...but honestly I was also..not aware of it...now I am and regardless of who or what was responsible I do not agree with it. The intent might have been good hearted...but it just flat out blew up.
One of the issues I differ with our current Pres/party on is the above...
I don't agree with much of that...but honestly I was also..not aware of it...now I am and regardless of who or what was responsible I do not agree with it. The intent might have been good hearted...but it just flat out blew up.
One of the issues I differ with our current Pres/party on is the above...
I dont get the bail out thing, nor do I understand welfare, incorporation, bankruptcy or any other program that serves as a bad choice safety net. Living within our means is not something that most Americans do, even huge companies. I'm not preaching, I'm in the same boat week to week. Perhaps without all the safety nets we would all be more responsible.
This thing is much bigger than "their" fault or "our" fault. and we all share blame.
I'm all for helping somebody out that deserves it, and I'm all for not letting these corps get so ****ing big that they are "too big to fail".
Part of the gov't regulations that were taken advantage of had other regulations lifted that allowed them to be exploited the way they were. Our economy has been teetering since the early 2000's with lots of little cover ups so things didn't seem so bad to the public.
Some regulations were enacted to get lower income people and minorities into homes, but those policies were NOT a problem until they decided we needed to have more growth in our economy because things weren't looking good, and lifted regulations on selling and created debt "swapping". That is when the floodgates opened.
and the blame is 2 sided. Banks had historically been lenders to people that could pay or at least had a good probability of paying. They looked at debt to income ratios and saw that if you had a job paying X amount of dollars for how many years and looked at your situation. If you bought that house for X dollars and were paying X amount in a mortgage you couldn't go right back and ask for 20K more for a new vehicle unless your debt went down, or you pay went up.
We were house hunting in the middle of this fiasco, and we had lenders swearig up and down were were great customers and could afford about 100K more than were could. I remember sitting there and one guy said, "why not buy 2?" with our credit scores income we should get 2 loans and buy two homes.
Luckily my wife is smart or I may have, but we had the same numbers he did and there was absolutely no way in hell we could afford that, but they were willing and trying to sell us that loan. It wasn't about us selling the lender on us being good people to lend to, they were trying to convince us to take more money than we could afford. They knew they could dump the debt by swapping and not have to have any assets to back up the bad loan they just gave to somebody else. All numbers on paper and easy to make things look a certain way and "create wealth"
So I 100% believe the banks are responsible for a large portion. They knew what they were doing, and instead of being a bank they decided to operate differently.
But I also blame the borrowers. It didn't take a rocket scientist to figure out that with our vehicle loans, and student debt load that we could not afford 500K loans that they were begging us to take. We ended up going thru a smaller bank that was much more traditional, and ran things the way they should be. They didn't approve us for near the amount many other places had, and we didn't spend what they approved us for anyway.
Many people took advantage of this and bought more than they could afford. I know this, they tried to get me to do it, and I know people that are so house broke right now they are seriously considering quitting and starting over. If I didn't know them and feel somewhat sorry, I would be laughing that they were so stupid to think they could have afforded a 400K house for 300 dollar a month mortgage payments.
But not everybody did this, some did buy within their means, but their means has disappeared, job loss or many other things. Those things are normal, they happen in any economy at times, but coupled with all the bad loans and bad decisions it makes this situation much worse for everyone.
I ramble so to the point, there is enough blame for everyone.
I'm all for helping somebody out that deserves it, and I'm all for not letting these corps get so ****ing big that they are "too big to fail".
Part of the gov't regulations that were taken advantage of had other regulations lifted that allowed them to be exploited the way they were. Our economy has been teetering since the early 2000's with lots of little cover ups so things didn't seem so bad to the public.
Some regulations were enacted to get lower income people and minorities into homes, but those policies were NOT a problem until they decided we needed to have more growth in our economy because things weren't looking good, and lifted regulations on selling and created debt "swapping". That is when the floodgates opened.
and the blame is 2 sided. Banks had historically been lenders to people that could pay or at least had a good probability of paying. They looked at debt to income ratios and saw that if you had a job paying X amount of dollars for how many years and looked at your situation. If you bought that house for X dollars and were paying X amount in a mortgage you couldn't go right back and ask for 20K more for a new vehicle unless your debt went down, or you pay went up.
We were house hunting in the middle of this fiasco, and we had lenders swearig up and down were were great customers and could afford about 100K more than were could. I remember sitting there and one guy said, "why not buy 2?" with our credit scores income we should get 2 loans and buy two homes.
Luckily my wife is smart or I may have, but we had the same numbers he did and there was absolutely no way in hell we could afford that, but they were willing and trying to sell us that loan. It wasn't about us selling the lender on us being good people to lend to, they were trying to convince us to take more money than we could afford. They knew they could dump the debt by swapping and not have to have any assets to back up the bad loan they just gave to somebody else. All numbers on paper and easy to make things look a certain way and "create wealth"
So I 100% believe the banks are responsible for a large portion. They knew what they were doing, and instead of being a bank they decided to operate differently.
But I also blame the borrowers. It didn't take a rocket scientist to figure out that with our vehicle loans, and student debt load that we could not afford 500K loans that they were begging us to take. We ended up going thru a smaller bank that was much more traditional, and ran things the way they should be. They didn't approve us for near the amount many other places had, and we didn't spend what they approved us for anyway.
Many people took advantage of this and bought more than they could afford. I know this, they tried to get me to do it, and I know people that are so house broke right now they are seriously considering quitting and starting over. If I didn't know them and feel somewhat sorry, I would be laughing that they were so stupid to think they could have afforded a 400K house for 300 dollar a month mortgage payments.
But not everybody did this, some did buy within their means, but their means has disappeared, job loss or many other things. Those things are normal, they happen in any economy at times, but coupled with all the bad loans and bad decisions it makes this situation much worse for everyone.
I ramble so to the point, there is enough blame for everyone.
I agree with Renee and release. I don't deny that there were people who got into loans that they shouldn't have, but I would guess that there were many more who thought that they were being responsible in buying. I know of people who got 5 year ARMs and the banks just told them not to worry, that they would refi the loans when they expired and everything would be hunky dory. Everyone was saying "buy, buy, buy," people thought of home ownership as part of the so-called American dream, and real estate was thought to be an asset the value of which just went up. Of course hindsight is 20/20. Presumably this is true for a lot of us.
I think the problem is a lot bigger than home buyers being greedy, or even individual mortgage bankers being greedy. I think it's a problem of an utter lack of oversight and a whole industry being built on financial products that no one really understood.
I think the problem is a lot bigger than home buyers being greedy, or even individual mortgage bankers being greedy. I think it's a problem of an utter lack of oversight and a whole industry being built on financial products that no one really understood.