1. Bank does stupid sup-prime loan with “no income verification for $300,000 house
2. Bank puts loan in pool of loans and sells as marketable security
3. Investors make big money off of the dividends supported by the mortgage rates
4. Buyer pays Mortgage for 12 -24 months, all of a sudden loan adjusts, buyer can’t pay, buyer gets foreclosed on.
5. House now has a balance of $298,000 BUT low and behold house is now worth $330,000
6. Bank does another stupid sub-prime loan with “no income verification”
7. Bank puts loan in pool of loans and sells as marketable security
8. Investors make big money off of the dividends supported by the mortgage rates And it goes on and on UNTIL:
9. Buyer pays Mortgage for 12 -24 months, all of a sudden loan adjusts, buyer can’t pay, buyer gets foreclosed on.
10. House now has a balance of $328,000 BUT low and behold house is now worth $295,000
11. UH OH!!!
See what we have here?
Corporate greed and now, the Chickens have come home to roost. If the borrower has to pay for their stupid choices, why shouldn't the investors and the Lenders?
I'm just saying...
What's up Bro - I'm with you - it's definitely corporate greed here - definitely.
Posted by: Darius T. Williams | 04 October 2008 at 08:19 PM