it was also the fact the original lender did not care if there was a default because they were out of the risk by selling the note.
It is so bad that many notes can not be found. Note holders have actually lobied, and got, lost note reconstruction laws modified. (you don’t actually need to have the physical note if the judge can order the note as paid to prevent a future holder demanding payment.)
I suspect some of the sleazier bundles will be found to have duplicate sales for the same mortgage promisory note.
We are going through a financial surgery, there is going to be a recovery healing time and better in the long haul.
-— — -—
ATTENTION: STEALING ELECTIONS ON FNC
Yep. And when you did make a down payment, it couldn’t come from a ‘piggyback loan’.
Even if Wall Street hadn’t sometimes been lax in slicing and dicing mortgage-backed securities, there’d still be a lot of bad mortgages out there—looking to roost somewhere.
It is a mess but IMHO both the borrowers and the instituations are at fault there are very few borrowers who did at not at least have some doubts they would not be able to repay the debt year after year. Many would have realised it meant both of them continuing to earn the salaries they were and hoping against hope that interest rates, utility bills etc etc did not go up substantially.
Bottom line is of course you should not lend money to people that stand a good chance of not repaying it but also those borrowing IMHO must bear some of the responsibility.