Re: The facts about who caused the current economic disaster
Quote:
Originally Posted by
brewguy
This goes way beyond lending to minorities. I looked at several foreclosed houses in our area and couldn't believe the loan history. Some were really run down and would have been for many years and yet you could see every year they would refinance for more money. Several were last financed at $350k and now selling for $100k. The banks just kept lending more and more money using adjustable rate loans. They knew that no one would be able to pay them back once the initial rate ended.
Still not to say that Clinton didn't kick it off.
it was a no lose situation for the banks.
they continued to give home equity loans and mortgages because they couldn't lose.
if you did default for whatever reason they wouldn't allow people to catch up their loans because the loans were insured by companies like AIG, and it actually was more profitable for the banks to foreclose because they were made whole from the debt because of their insurance policy paid the debt and as an added bonus they still retained ownership of the property and whatever they sold the properties for after the foreclosures was an added bonus
Re: The facts about who caused the current economic disaster
...and we were told by media articles that banks are not in the real estate business and do not want to be engaged in it.