[citation][nom]kinggraves[/nom]Those dastardly banks, expecting you to pay your mortgage and taking the house when you never pay it. They should've known people were too stupid to understand how a loan works and turned them down.Just pay for everything yourself and don't depend on credit/loans. They don't make their money to lend you off of money trees, they make it by taking it from the last guy. It's how credit works.[/citation]
you dont get it, predatory loans. they know these loans will fail, and they sell them off to someone else to deal with, because even if they sell the loans at a loss, they get money from the government as insurance.
they sold these packages (which memos in company say they called them "bag of [explitive], Hiroshima, Katrina, and other disasters) packaged and sold them to someone out of country, for 500 million, that company after some time realized that they had lost 450-470 million on that deal.
the banks are commiting fraud on a massive scale.
lets also go into how they bet money, as in for every 1$ they have, they make X$ of extremely risky investments. if i remember right wells fargo is the best one in this reguard, only betting about 76$ for every 1$ they have, and the bet is evaluated somewhere in the 4-5 times out national gross domestic product... yea, they are the BEST one as in investing the least amount of moment like that.
now on a more macro scale, you have banks targeting minority's with predatory lending, now lets go on what that means.
a fixed rate mortgage will not change, same as always. a adjustable usually starts out better than that fixed rate, and they say you can switch to a fixed after X amount of time.
lets say both people pay 1000$ a month for their home, now over time, and a short time at that, the ajustable rate forces one to pay 2500$ a month, and the other is still 1000$
most people cant handle that 2500$ so they have to foreclose.
now here is where its even worse. the banks don't always foreclose, so you still have to foot the bill for a home you cant live in, and are forced to keep up with maintenance.
there are some people who really cant pay their homes for valid reasons like they lost a job and such, and there are people who get screwed hard by the bank... and the people who get screwed out number the "i lost my job" people by a large margin.