dslreports logo
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
350
share rss forum feed
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1
Reviews:
·Millenicom
·Embarq Now Centu..
·Comcast
·CenturyLink

Smells like a mortgage backed security deal!

It appears Verizon used the same technique to con Fairpoint that the unethical mortgage companies used to defraud home buyers. Con home buyers into buying a property that the mortgage company knows the home buyer cannot afford and trick the home buyers into taking responsibility for a debt the mortgage originator knows that the home buyer can never pay off.

ITALIAN926

join:2003-08-16
kudos:2
Reviews:
·Verizon FiOS

1 recommendation

Re: Smells like a mortgage backed security deal!

BULL !!! Im tired of hearing how the banks were completely at fault for the housing meltdown. Theres this thing called PERSONAL RESPONSIBILITY. People ( and companies) should know how much they can buy & borrow. If people were responsible, and didnt overspend, our country would be in much better condition.
chgo_man99

join:2010-01-01
San Jose, CA

Re: Smells like a mortgage backed security deal!

I bit disagree with you. Many homebuyers had originally in mind a home of smaller value they planned to buy but then at the bank, financial "advisor" persuaded them they can afford a bigger or better dream house! How do you think many of them insisted they cannot afford more than what originally they planned? Everybody was involved, I do not see that customers are without fault, but banks, realtors were undeniably very unethical and ignored warning their customers. Many were also tricked and encouraged to buy believing their house value will always rise, like it has for decades told so by realtors.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA

Re: Smells like a mortgage backed security deal!

said by chgo_man99:

I bit disagree with you. Many homebuyers had originally in mind a home of smaller value they planned to buy but then at the bank, financial "advisor" persuaded them they can afford a bigger or better dream house! How do you think many of them insisted they cannot afford more than what originally they planned? Everybody was involved, I do not see that customers are without fault, but banks, realtors were undeniably very unethical and ignored warning their customers. Many were also tricked and encouraged to buy believing their house value will always rise, like it has for decades told so by realtors.

That would be extremely naive to believe that a houses value will always rise. The blame lies with the home owner by not doing their proper research.

And by the same token no one but Fairpoint is to blame here. It is certainly not Verizons fault. Fairpoint had plenty of time to research, consult etc. and they still went through with the deal. They weren't forced to do it. Hopefully the courts rule in Verizons favor and also force the creditors to pay the legal costs for verizon.

jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1
What can the responsible citizen do about it? I am careful with my spending. I even make every effort to vote for leadership that is against overspending; although, it seems that these candidates rarely have a legitimate chance of winning. I'm willing to make significant lifestyle changes in order to help prevent this economic ship for capsizing, but my voice is merely a whisper amongst the gale of shouting demands for entitlements.

ITALIAN926

join:2003-08-16
kudos:2
Reviews:
·Verizon FiOS

Re: Smells like a mortgage backed security deal!

The responsible citizen unfortunately gets the shaft. Thats the real crap. While all the morons over spent and bought homes out of their price range, most of us had common sense. Not only do we have to subsidize their losses through bankruptcies and foreclosures, the prices of houses WE bought were inflated due to inflated demand.

Regardless of what any BANK tells me, I can do simple arithmetic, and KNOW whats sensible.

footballdude
Premium
join:2002-08-13
Imperial, MO
said by Mr Matt:

It appears Verizon used the same technique to con Fairpoint that the unethical mortgage companies used to defraud home buyers. Con home buyers into buying a property that the mortgage company knows the home buyer cannot afford and trick the home buyers into taking responsibility for a debt the mortgage originator knows that the home buyer can never pay off.

If the loan is never going to be paid off, then the only way that mortgage company can make any money on the deal is to sell the mortgage to another financial institution. Enter Fannie Mae and Freddie Mac. Those government entities were willing to purchase the mortgages and they eventually got to the point where they couldn't cover all the bad paper. Why does no one ever complain about the fat bonuses and hefty salaries pulled down at Fannie and Freddie?
--
Dresden - I work in Accounts Payable.
Random Bad Guy - In what capacity?
Dresden - I make sure everyone gets what's coming to them.