| reply to neowulf
Re: Some investors are not very smart. "Yet the 2005 regulation change makes it so the bank no longer has to make sure the loan can be paid back, in fact that is exactly what the banks were looking for, they wanted people to default on their mortgage so they could foreclose and then turn around and sell the house at a profit, while pocketing whatever interest and down payment they did make."
I was in banking for a number of years before I grew-up and I can tell you the LAST thing a bank wants is to sell property. It sounds nice but it's not true.
Do you really think that a bank would knowingly loan money to someone who they thought could not/never pay it back?
They were forced to loan money to certain groups under penalty of huge fines or the ability to merge with other banks.
Good history but not what really was going on.
Thanks |
