Will we ever learn? If you read about the continuing problems of the foreign banks (Deutsche Bank and Ocwen) not to mention good old Bank of America, you will see that their investment into Real Estate was not a good one. If you have been involved with these lending institutions in the past ten years, you know how deceitfully they operated. I know a family who lived in their home three years without making a mortgage payment. The reason was that when the foreclosure attorneys tried to trace the initial commitments, they were never located.
The manner in which these early mortgages were handled defies any normal (up until that period) transaction. Home buyer’s signed disclosures at the closing table that informed them their mortgage had already been sold! What kind of way is that for doing honest business? If you chose to do business (thousands of dollars’ worth) with a lending institution you know and trust and then discover a foreign bank or mortgage company actually holds the contract on the mortgage to your home, what can you do? Oh sure, you can refuse to close the transaction. What kind of a mess would that leave for you and the seller?
These have been accepted practices for the past ten years. No wonder the home sales market flopped.
Now I am reading about the billions of dollars, yours and mine that are forever lost in the system. Bailout money and lawsuits do not put one penny back into your pocket. The banks will survive. They will invent new ways to reach into the pockets of trusting home buyers. The cycle is beginning all over again.
Credit is king! Credit is not money. The very idea that you can promise to pay in the future, money that you do not have now, is fraud. Credit scores can be manipulated. Homes will be bought by people who cannot afford them. Why not? The government has stated that we deserve them. Whether or not you have saved enough money to buy, whether or not your income is stable and substantial enough to afford the payments. YOU DESERVE A HOME. And then in a few years, if you fall behind on your payments, you walk away….