Who is responsible for all the defaulted mortgages?
The banks that irresponsibly loaned or people who took the mortgages knowing they couldn’t afford them? Obviously there are also people who fell on hard times, I’m not counting them….
Tags: Defaulted, Mortgages, responsible
Ultimately the people are to blame. The banks may have offered loans that the people couldn’t afford, but the people didn’t have to accept those loans! For every person that got way over their head with a mortgage they couldn’t afford there are two people who were responsible and smart enough to buy homes they could actually afford. We aren’t hearing about those people, of whom I am one. All we hear about in the media is the idiots who thought they could buy a house way out of their price range and somehow not lose that house when they couldn’t pay for it later.
it’s a nightmare isnt it! not just mortgage company’s but what about all these credit card companies etc that give people these big credit limits when they damn well know that they won’t be able to repay them!!!!!!!
Borrowers who were unrealistic in their ability to repay the loans.
No one forced people to buy things they could not afford.
It’s both, but people were pushed into having the dream, but who will suffer? You can bet it will NOT be the bankers who dreamed up stupid plans, the sole purpose of which was to make themselves ridiculously large bonuses!
It is the responsibility of the person who took out the mortgage to pay their debt. Some got into variable interest rate loans they could not afford. Lenders also had a responsibility to make loans only to those who were qualified. The government forced many lenders to make loans to low income people who were not qualified. There is plenty of blame to go around. The ultimate responsibility rests on the one who took out the loan. They should have never obligated themselves to a mortgage they could not afford.
Its the banks/lenders as well as the people.
I would not buy a house if i knew i was really not capable of paying the monthly interests.(we should get realistic).But if my lender is able to convince me that i can, i might just fall into it.After all, we all dream of owning a house.
The lenders , on the other side, are fully aware of what you can repay/not. They pull your credit , they know exactly where and when you defaulted, your earnings and so on.But its in their interest to give loans, which they do.(I can say all this with confidence simply because I am a lender too, but thankfully we are pretty conservative.But i am aware of companies that give loans JUST LIKE THAT….at super high rates)