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Short summary- some banks are going after some people that defaulted on overpriced homes they should not have purchased in the first place.
Banks MAY have sold the houses way under the price of the defaulted loan and PER THE CONTRACT, they have the right to go after you for the deficiency of the two.
Breaks down like this-
"Dude" buys an overpriced house in 2006 for $250,000. The house is typically worth about $75K but hey it's the housing bubble and people are euphoric right? "Dude" can't afford that, but the lender tells him that the adjustable rate mortgage rate is right now at just zero percent. Your "payments" (read- the only thing the average borrower pays any damn attention to) is "now" (key word) $XXX. dollars.
"well damn, that's not much more than I'm paying for rent. And broke arse Uncle Joe the alcoholic told me that I'm stupid to rent cause it's just "paying someone else mortgage." Besides, this job in construction is going great and I don't pay attention to trends or the news so I figure I'm in the money for years, probably decades. As a fall back plan, my stupid Aunt Sally who can't do math told me that "house prices are only going up" so I'll be able to sell it for $50K more than I bought it for, hell probably TOMORROW! I already now one guy that made $20K "flipping houses" so it must be fun and profitable. Besides, we have 2.5 children now, so this 1,200 square foot house just isn't enough, we "deserve" more."
WHAT COULD POSSIBLY GO WRONG??
And for years now we have had the "who's fault is it?" discussion.
SOCIALISTS and democrats (one in same) and even those that call themselves patriots but are unwilling to take responsibility for their own actions- blame the "evil corporations." Cause you know, they snatched you off the street, interrogated you for days and then with a gun to your head FORCED you to not read and then sign a large contract.
The REAL problem was GREED and EVERYONE was in on that.
GREED, envy and covetous was behind the borrower's motive. Most all KNEW they could not afford the houses, if they didn't, well then they need to go back to consumer math class.
GREED and covetous was behind the lender's motive. Most all of them KNEW that half the people being "approved" were likely candidates for default. The "everyone deserves to own a house" BS propagated by the gubmint and legislators are to blame also.
So is it some huge thing that now some are being chased for judgements? Is this a surprise to anyone? Really? Oh no that's right, that was in that 15 page contract you signed that you probably read two lines of (I've WATCHED people do this very thing).
So expect to hear more about "evil corporations", "predatory lending" and the like from the SOCIALIST BRAINWASHED public. God forbid they man up and take RESPONSIBILITY FOR THEIR BAD DECISIONS.
"Oh man, your an arse that was harsh." Yep, reality often is. Yet as someone who owed a considerable amount of money and scrimped and cut and paid it all off- without defaulting on a house, CC or vehicle loan, I can give some true commentary on this. Further as a business lender, I've seen and heard the BS stories from the "it ain't my fault" types that refused to pay. If your stupid enough to give their stories any credence, your rewarded by seeing them wheel 96" flat screens out of walmart two weeks after telling you they can't pay a $300. bill that's four months old. Wow, my family is pulling to make ends meet, I try to give this jerk some time and he's dropping $1200. on a frickin TV?
People CAN pay, but they will pay only what they want to pay. However when a JUDGEMENT haunts them for the rest of their life because of them saying "screw it", once again, they have no one to blame but themselves....
Responsibility.... if we all used it, the world would be a much better place.
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