No one put a gun to the homebuyers head and forced them to sign the loan. And no one has a *NEED* for a house, when renting is a viable option.
The buyers knew what they were getting... and if not, a fool and his money are soon parted.
yeah, those homeowners should have known about the corruption taking place in the banks and financial institutions. They should have expected an intentional attack on our economy. Screw them!
Big talk from someone who is living in gov’t housing I’m paying for,, eating food I’m paying for,, wearing clothes I bought for you...
all forclosure and bankruptcy law is premised on the notion that primary residence property will remain steady and hold or improve value. The pre-2005 bankruptcy reform even envisioned the only way to have 100%+ lien on a home is via fraud or churning of financing.
The banks were pushing the future increase in home prices and essentially telling buyers that the price will not go down but will go up. You HAD to use one of the bank’s appraisers (ie Bank of America had a list appraisers you HAD to use or you would not get the loan)
in most situations it was CHEEPER TO BUY than it was to rent.
There were no angels.
HOwever it has to be noted that the bank got exactly the security they sought and gave.