Those slackers signed up for more loan than they could afford.

[WingDinger]

This is the conventional wisdum from the right.

So did my parents, and most of yours. Back in the days of the american dream, you extended yourself. You worked hard, and EXPECTED the system to start elevating you into the middleclass.

Even though my parents lash out at the slackers, they tell their story as a man and wife, that bought a house without enough security, had kids starting when still employed pumping gas. Should they, or any of our parents done so now, they too would be the subject of spitting and ridicule.

And yet, those that have already climbed the ladder, before it was yanked up, insist that the american dream is the same. That bootstraps have not rotted or been turned into whips.

Without faith, that the system will function to the benefit of the worker, even if not at this moment, we are already a feudal society. Should this lack of faith be institutionalized, only revolution can restore it.

Make your choice corporate america. Real bootstraps, or revolution. And make it snappy. My boots are draggin ass 10 paces behind me. With all of us worked to the bone, and bloodshot, it is simple to pick out the whites of your eyes.

[cthulu2016]

1. Almost nobody signed up for more loan than they could afford

if we use a useful meaning of "afford."

You buy a property that appreciates in value. If your cash-flow goes south then you sell the property for more than you paid for it,.

And nobody complains.

The only problem with any of these loans is that the market value of real estate went down.

If it had not gone down there would have been no crisis, no problem. We wouldn't hear a thing about people losing their houses because they would be selling their houses.

So the only fault lay in thinking real estate would go up forever, and that dumb view was held much more (or at least as much) by the rich than by the lower middle class. Much of the housing bubble was driven by people who owned more than one property.

And those people were obviously not the Fannie/Freddie affirmative action penniless deadbeats of republican mythology.

[WingDinger]

4. Houses always going up, never really was, but for coasts.

Most areas with real weather, take almost as much maintainance, as increase in value. That large increase in value, was manufactured as a bubble, knowing full well it would pop. Capitalism has grown to become musical chairs. Downturn, depression, oh, thats normal. Say those that profit from feast AND famine.

[quaker bill]

8. Not true here

I live at one of the epicenters of all this cr*p. They were selling with reverse amortizing "interest only" notes (the reverse part being that not even the full interest charge was covered by the payments) to people without income verification or credit checks. These bogus notes were then bundled asap into securities and sold to the highest bidder. There was no earthly reason to believe these people could make even the token payment, which would balloon in three years. They were sold to folks on the notion that prices would continue to rise and when the balloon came due, they could sell at a profit and use the profit to get into a conventional loan.

More or less entire subdivisions went into foreclosure all at once.

[WingDinger]

10. Yes, fiduciary responsibility has been replaced with caveat emptor. SUCKERS.

[ms.smiler]

18. quaker bill, hopefully I won’t be explaining that which you already understand.

The banks had trillions in investor money to lend, so they didn’t care who obtained a mortgage loan. The more loans sold, the more mortgage backed securities the banks could sell.

The banks designed the MBS to fail, that’s why so many defective mortgage products were sold to home buyers. The banks purchased insurance, Credit Default Swaps, and awaited the day the mortgages would blow up on the homeowners and the MBS investors. The banks even pledged the mortgage loans to multiple Trusts and often insured the loans for twice their value. It was a Ponzi after all and the time soon arose when the MBS failed and the banks could collect their Swaps, all while their own money was never at risk and when they didn’t own the loans. Then the banks sold the failed MBS off to the U.S. government and the Federal Reserve, collecting trillions more on top of the Swaps.

So that’s what happened with the loans, but what about the mortgage liens?

Everything that happened with the Promissory Note was tracked privately and secretly within the MERS database. Only the original mortgage lien appeared in our public land records. The banks, via the mortgage servicing companies they own, can return to our public land records at any time and simply file a fraudulent Assignment of Mortgage and claim to own the loan. This explains why document mills exist and why so few foreclosure cases include the original Promissory Note.

By re-creating the loan on Main Street, the banks can steal trillions of dollars of real property from homeowners.

WingDinger - Those right wingers always look past the responsible monied parties so they can place blame on ordinary hard working Americans. Consider these facts: less than 1% of home buyers purchased more home than they could afford. 50% of sub-prime borrowers actually qualified for prime mortgages but were sold sub-prime because those loans were more profitable. In 2006, 80% of mortgage loans sold contained fraud.


I’ve been researching mortgage/foreclosure for over 3 years. I filed suit against my mortgage servicer and the trial is presently scheduled for May of 2012. http://www.scribd.com/mssmiler

[boston bean]

2. I've seen the same sentiment here on DU.

and no, I won't go find the offenders. anyone who is thinking of asking me to, will just have to take my word for it.

[got root]

15. link

http://www.democraticunderground.com/?com=view_post&forum=1016&pid=4272

[1monster]

3. When we applied and recieved those loans, we could afford to pay them all off in cash. Including

our mortgage. But that was before the banks literally stole over a hundred thousand dollars from us and the other banks raised their interest rates (somehow legally) far higher than what would have gotten a loan shark five to ten in the slammer, and Congress decided to pass the euphemistically named law "Help Keep America out of Debt."

I don't apply for any loans or buy anything on credit anymore. At today's rates, I can't even afford a $100 loan.

[WingDinger]

6. Those who found ways to steal all the profits, also found ways to charge YOU for the shortfall. And

blame anyone but the profit stealers. {USURY}

And furthermore, ending personal bankruptsy, puts the kybosh on feeling strong enough to take a risk{start a business}.

[CJCRANE]

14. And it was the banks/corporations, through Hank Paulson, who asked for the taxpayer to bail them out

That's what the above poster is forgetting.

[SixthSense]

7. Back in the day of the real American Dream

you could achieve a middle class lifestyle without becoming a debt slave to do it

[cyglet]

9. And

you had job security.

[WingDinger]

11. Yes, it was unseemly to send you to the glue factory at forty.

[Tuesday Afternoon]

12. amen.

[L0oniX]

13. The more $ people make the more they spend instead of staying where they are at and saving the money

I see people all the time with the new car, nice cloths and home but yet they have no money saved. They put on the appearance of having it great but have no food in the pantry.

[CJCRANE]

16. IMO the banks are mostly at fault.

If I lend someone a $1000 and they can't pay me back...who is the bigger idiot? Of course, the lender is the bigger idiot, that's the conventional wisdom. Don't lend money to people who can't pay you back. If you do then you expect to take a hit.

[ellenfl]

17. according to an item in my local paper, a study found that 50% of foreclosures

in florida, california, nevada and other high foreclosure states, were investment purchases. we're not talking poor people, most likely of color, as the rw likes to claim. investors walked away from their upside down mortgages.

ellen fl