Bruce Marks is a socialist whose group has been shaking down major lenders for “partnership” contributions for years. I suspect Countrywide has cut off the money for his organization so now he is going after it. Countrywide may be having its problems, but being an irresponsible or predatory lender is not one of them.
What exactly is Country wide expected to do? Not ask people to make their payments? Crazy.
I really find it hard to have any sympathy for people who don’t read the fine print. These homeowners should have done their homework.
Yawn.
Homeowners in peril have their own problems. They have chosen, however unwisely, to put their future earning capabilities and monetary security at risk. They have a legally enforceable contract, which they signed of their own free will (albeit subject to some selective blindness), which binds them to repay a given sum of money according to an agreed set of terms. The biggest problem, is variations in the rate of the interest on the unpaid balance. They signed on perhaps an “interest only” or “below market rate” interest bearing loan, and did not realize what “amortization” really means. The effect is, that on any amortized loan, the initial payment is mostly payment on interest, with only a very small amount going to reduce the principal of the original loan. So even after a year, or two or three, most of the original debt still exists.
There is a way to beat this. Determine how much the principal is being reduced each month, then pay two or three times that much in addition to the agreed monthly payment. This one act alone can reduce the loan repayment by literally years.
And do not fret about the lender going “broke”, as the obligation is often no longer held by the original lender anyway, though they may be acting as the servicing agent. And even if they still hold the paper, all these insturments are passed to the hands of a court-appointed receiver, as “successors and assigns”.
If you fail to pay regard (and the agreed monthly payment), the “successors and assigns” are in a well-established position to pursue you for the remaining debt, unless satisfactorily discharged in some manner.
This is a lot like those folks that bought Enron stock for $5/share and watched it climb to $100 and they scream that they had been “cheated” out of $95 when it fell back to its true value.
1) Alan Greenspan urges Americans to take out ARMs for a "better deal".
2) Bush signs the "Bankruptcy Reform" Act, which includes numerous provisions making it harder for consumers to obtain protection from foreclosure--including killing the medical exemption (those who went broke solely from healthcare bills and not from buying plasma TVs) which was in the bill before March 2004
NACA is a socialist organization that uses guerilla tactics to “negotiate” ridiculously good terms for unworthy people. They then ask these “clients” to go on the offensive against ALL mortgage brokers and banks as well. Basically a breeding ground for left-wing “corporations are evil” activists.
“Subprime loans are issued to borrowers with poor credit histories who often lack the funds to make large down payments.”
Seems to me that someone with poor credit history should not be given a loan at all.
Sorry, but this does indeed smack of predatory activity, especially since the corporation knew ahead of time that these people were a poor risk.
There’s enough “blame” to go around on both sides in my opinion.
They should just ban stupidity, and it will all go away.
Here’s a novel idea-how about instead of schools teaching young skulls full of mush about global warming, and how to put a condom on a cucumber they return to teaching things such as economics and the economics of running a household.
ping
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Making huge quick profits writing mortages for folks that logically would not be able to honor their contracts, bundling these worthless deals and selling them to other fools was clever, to a point. But like junkies they just didn’t know when to quit. There is a fine old saying that seems to apply “when you owe the bank $1000 you have a problem, when you owe the bank $1,000,000 the bank has a problem.
I hate to break it to you, but some of these people still won’t be able to make their payments even if they get refinanced at 0% interest. Some people have bought more than they can afford hoping to make a killing by selling quickly. How are we to help them?