New Laws for 08' (foreclose, mortgages, credit card)

[SALUKI_LOVER]

http://www.newsobserver.com/news/story/850201.html

[rcarrillo]

From the "Mending lending":

>>>In which homeowners are discovering that they can't afford their mortgages. <<<

How does someone "discover" that? Did they read the 3-4 places on the application and loan documents where it is listed? Same thing about adjustable rates... its spelled out. Im all for driving out any lender that committed fraud or deceived their clients, and yes some did.

But I think a lot has to be said for consumer reading what they sign (credit card, student loans, auto loan and mortgage) and take responsibility for their purchases. No one forced them to buy a home 2x what they could afford. While the lender should have denied it the buyer needs to step up as well. I know "personal responsibility" are dirty words and don't win votes, but I am just waiting for the day they institute government run housing for all to "protect us".

>>>The changes give consumers more rights and make it tougher for a lender to issue a shaky loan.<<<

I would think that lenders would also not want to issue shaky loans..... its not like banks want to lend money that will never be paid back. I know I do not want a client to buy a home only to lose it later. Of course, there was a lot of greed and lenders lost sight of reasonable standards. But they make it sound as if lenders like making "shaky loans" and the only way to stop it is with more laws.


Just feel the need to put in my 2 cents whenever I see articles on this with soundbites from politicians. Same as lenders with greed, most have their own agenda for the laws they sponsor and the consumers best interest is usually not #1 on the list.

[findingmesomeday]

Originally Posted by rcarrillo

From the "Mending lending":

>>>In which homeowners are discovering that they can't afford their mortgages. <<<

How does someone "discover" that? Did they read the 3-4 places on the application and loan documents where it is listed? Same thing about adjustable rates... its spelled out. Im all for driving out any lender that committed fraud or deceived their clients, and yes some did.

But I think a lot has to be said for consumer reading what they sign (credit card, student loans, auto loan and mortgage) and take responsibility for their purchases. No one forced them to buy a home 2x what they could afford. While the lender should have denied it the buyer needs to step up as well. I know "personal responsibility" are dirty words and don't win votes, but I am just waiting for the day they institute government run housing for all to "protect us".

>>>The changes give consumers more rights and make it tougher for a lender to issue a shaky loan.<<<

I would think that lenders would also not want to issue shaky loans..... its not like banks want to lend money that will never be paid back. I know I do not want a client to buy a home only to lose it later. Of course, there was a lot of greed and lenders lost sight of reasonable standards. But they make it sound as if lenders like making "shaky loans" and the only way to stop it is with more laws.


Just feel the need to put in my 2 cents whenever I see articles on this with soundbites from politicians. Same as lenders with greed, most have their own agenda for the laws they sponsor and the consumers best interest is usually not #1 on the list.

I hear you. My cousin (in South Florida) is upside down in her house. They had no business buying this house and when things unraveled and it all came down like a house of cards, she immediately said she was going to file bankruptcy and foreclose. I tried to talk her out of it and all she said was "but I have no equity in the house--what else am I supposed to do?" Well, I guess maybe saving up a down payment and buying a house you could afford would have been 2 good first steps?