Negative Equity Is Making Paupers of Too Many Americans

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Bring it on. The cramdown chapter 13 mortgage loan modification will let a bankrutpcy judge lower the mortgage balance to something closer to market value.

When honest Americans purchased homes pledging about 30% of their gross income to pay for that home, they fully expected the historical increase in the value of their home over the next 10-20 years to represent most of their wealth, the bulk of their savings, their nest egg for retirement and security in the equity they realized as their home grew in value. American home owners have had their wealth, their savings, their nest egg for retirement and the security for themselves and their familystripped from their lives by the perfidy of some greedy Wall Street gangs and politicians who sold them down River Lobby. Rather than give relief to American homeowners who have lost everything, the government gave the taxpayers' money, many who have lost everything to the banks that profited from the roulette of mortgage securitization.

Americans didn't "buy homes they couldn't afford". They bought homes that their experts assured them that they could afford because they were qualified based on the expert's own rules, the loan officer, the underwriter, the investor and the regulators who had the power to say yes or no.

Read the full article at: activerain.com

Date published: Dec 01, 2008

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