Subprime Fraud - Day of Reckoning

[dessert]

I saw the 60 minutes show too. It was unbelievable and I agree that the CEOs should be held accountable.
What really struck me though was the guy sitting in front of the map of Stockton showing all of the foreclosures and explaining how the loans had been sold and re-sold so many times that the local real estate folks couldn't even determine who owned some of the homes.
I think an enterprising soul could just drive through, pick one he likes and pull up the sign in the front yard and move in!
Just put up drapes, cut the front lawn and you're in like flint. I bet it happens before this is all over.

[hankster]

Many buyers got caught up in the frenzy and figured the train to real estate riches
was leaving the station and that they'd better jump on quick. Combine that with
lenders willing to finance anyone with a pulse, and the stage was set for this debt
disaster.

[Marquette]

Quote:

Originally Posted by Caroline This seems like a good place for a shout-out to my credit union.

We're dumping our bank in favor of moving back to our credit union as well. They're fast, friendly and local. It's actually a credit union for employees of a large hospital so I'm fairly certain they'll continue to do alright.

[Spanky]

Quote:

Originally Posted by dessert What really struck me though was the guy sitting in front of the map of Stockton showing all of the foreclosures and explaining how the loans had been sold and re-sold so many times that the local real estate folks couldn't even determine who owned some of the homes. I think an enterprising soul could just drive through, pick one he likes and pull up the sign in the front yard and move in! Just put up drapes, cut the front lawn and you're in like flint. I bet it happens before this is all over.

We were in Stockton, CA in December 07. There were about 2 to 3 houses on each block (about 10 houses) with a sales sign. Most of these houses, with stucco exterior, were about 6 to 7 years old. The list prices were not that cheap -- about $380K. DW did not like the area. She said that the city looked depressed and the outskirt was mostly farmland.

[Spanky]

After viewing the video, I feel that everyone was responsible including the lenders, Wall Street, mortgage brokers, real-estate agents, appraisers, closing agencies, rating agencies, and borrowers.

Here is a link for more stories:
http://homeguide123.com/articles/Top...s_of_2007.html

[Retire Soon]

Eric Petroff gives an excellent explanation as to why all parties involved should share in the blame for the subprime crisis:

Who Is To Blame For The Subprime Crisis?

[UncleHoney]

In the summer of 2004 my sister was looking for a mortgage. I mentioned it to my neighbor, a mortgage guy, and he gave me one of his cards. I told him she probably had a sub-zero credit rating and he said, "No problem, send her over, We can make it happen".

I figured she had enough problems and never did give her the card.

[barbarus]

While I'll continue to enjoy reading these article, the subpirime/Alt-a/prime mess is being presented as it were news.
These ideas were being discussed for several years on the Internet, yet now we are given the impression that the lights just turned on and some terrible new phenomenon has suddenly emerged.
While the ballgame is just begun, we are ending the first inning.

Didn't you notice

[Spanky]

Quote:

While the ballgame is just begun, we are ending the first inning.

8 more innings to go? No, thank you.

[audreyh1]

I was impressed that they used an expert of the caliber of Jim Grant of Grant's Interest Rate Observer.

Audrey

[Walt34]

As my DW says, "The problem with loans is they always want you to pay them back. Plus interest."

Both of us were astonished at the pre-qualified offers we got in the mail when working, and neither could figure how we'd make the payments without both taking part time jobs or "just saying no" to food.