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Except when this happens : https://www.google.com/search?q=bank+of+america+wrongful+foreclosures https://www.google.com/search?q=bank+of+america+wrongful+for...

by eksith 13y ago

Except when this happens : https://www.google.com/search?q=bank+of+america+wrongful+foreclosures https://www.google.com/search?q=bank+of+america+wrongful+for... You're right in that paying a mortgage will make foreclosure "unlikely", but it's not impossible. Also note, BofA was among many predatory lenders. I.E. those institutions that have outright lied, misled or otherwise duped borrowers into mortgage deals that were woefully unfit for their financial situation. They continued this practice in renegotiations for loan modification after the market crash. This was revealed by several BofA whistleblowers: https://www.google.com/search?q=bank+of+america+whistleblowers https://www.google.com/search?q=bank+of+america+whistleblowe... Which makes payments to prevent foreclosure unlikely as well.

clarky07 13y ago
That's why I said unlikely. There were some issues, and those are unfortunate, but most people had it coming. As for the "predatory" lending, I still have no sympathy. If you are taking out a loan for hundreds of thousands of dollars, you should be doing your own due diligence. It's stupid of them to give those loans because they will lose money, but the guy taking that loan still needs to know if he can afford it or not.
- eksith 13y ago
  Due diligence is impossible when being lied to, isn't it? I don't think you know what Predatory lending really means. A lot of people saying, "well they should have looked into it" etc... haven't met anyone who's fallen victim to it and, from my experience, haven't had to face true adversity. This isn't a knock on you, I don't know you. This just from meeting people face to face who say "well it wouldn't happen to me. I've got common sense!" When the piece of paper presented to you is delivered with a smile and a lie (in many cases, half the contract missing), it's not just a matter of diligence. You're not above human fallibility. http://en.wikipedia.org/wiki/Predatory_lending http://en.wikipedia.org/wiki/Predatory_lending
  - clarky07 13y ago
    >Due diligence is impossible when being lied to, isn't it? I don't think you know what Predatory lending really means. Nothing in your article says anything about lying. The main idea is - "imposing unfair and abusive loan terms on borrowers." The main practices included adjustable rate mortgages that relied on housing prices to continue going up. People took out loans that they could just barely afford at the low intro rate hoping to either sell or refinance after the prices went up. Other practices included simply offering bigger mortgages than people could afford. Basically the banks and the borrowers were both greedy and wrongly assumed that house prices would continue to go up. When they didn't, both parties got screwed. The borrowers got foreclosed, and the banks lost a lot of money on the houses they got back. Lots of people lost a lot of money in the housing crisis (me included sadly), but that doesn't mean they were victims, and it doesn't mean they had to be foreclosed on. If you lost your job and couldn't find another one, that's one thing. If you simply couldn't afford the loan you took out, that's on you. I know the loan docs include lots of pages, but when you are borrowing hundreds of thousands of dollars reading them is probably a good idea. I'm pretty sure even the predatory lending docs still included the % interest, amount borrowed, monthly payments, etc.

by eksith 13y ago

clarky07 13y ago

That's why I said unlikely. There were some issues, and those are unfortunate, but most people had it coming. As for the "predatory" lending, I still have no sympathy. If you are taking out a loan for hundreds of thousands of dollars, you should be doing your own due diligence. It's stupid of them to give those loans because they will lose money, but the guy taking that loan still needs to know if he can afford it or not.

eksith 13y ago
Due diligence is impossible when being lied to, isn't it? I don't think you know what Predatory lending really means. A lot of people saying, "well they should have looked into it" etc... haven't met anyone who's fallen victim to it and, from my experience, haven't had to face true adversity. This isn't a knock on you, I don't know you. This just from meeting people face to face who say "well it wouldn't happen to me. I've got common sense!" When the piece of paper presented to you is delivered with a smile and a lie (in many cases, half the contract missing), it's not just a matter of diligence. You're not above human fallibility. http://en.wikipedia.org/wiki/Predatory_lending http://en.wikipedia.org/wiki/Predatory_lending
- clarky07 13y ago
  >Due diligence is impossible when being lied to, isn't it? I don't think you know what Predatory lending really means. Nothing in your article says anything about lying. The main idea is - "imposing unfair and abusive loan terms on borrowers." The main practices included adjustable rate mortgages that relied on housing prices to continue going up. People took out loans that they could just barely afford at the low intro rate hoping to either sell or refinance after the prices went up. Other practices included simply offering bigger mortgages than people could afford. Basically the banks and the borrowers were both greedy and wrongly assumed that house prices would continue to go up. When they didn't, both parties got screwed. The borrowers got foreclosed, and the banks lost a lot of money on the houses they got back. Lots of people lost a lot of money in the housing crisis (me included sadly), but that doesn't mean they were victims, and it doesn't mean they had to be foreclosed on. If you lost your job and couldn't find another one, that's one thing. If you simply couldn't afford the loan you took out, that's on you. I know the loan docs include lots of pages, but when you are borrowing hundreds of thousands of dollars reading them is probably a good idea. I'm pretty sure even the predatory lending docs still included the % interest, amount borrowed, monthly payments, etc.