“Number six is the real kicker, $35,447.00 in wages and some lender made him a loan on a $638,206.00 house. Someone should be in jail!! “
The story doesn’t ID the lender, but I’ll bet you a burger it was WAMU...
“Someone should be in jail” — that’s the ticket. Let’s jail “somebody” because they are at fault. It’s not the fault of the borrowers who obviously have no understanding of basic economics. It doesn’t take a rocket scientist to calculate a mortgage payment, understand how a mortgage operates and figure out the loan-to-value and payment/income ratios.
The problem lies with two people only - the borrowers who thought they could speculate in real-estate.