Y’know, it’s good that finally somebody’s actually planning to do something about the thing that’s been growing over mortgages… The thing is, for many it’s going to be a case of too little too late. There’s going to be a lot of people losing their homes over this fiasco because in their mad rush to worship at the altar of the almighty dollar a lot of lenders have actually made it too easy to get those mortgages.
Don’t get me wrong, as one of the millions that want to live the “American Dream” and buy a home, I want the mortgage financing to be really easy to get. Except that if it means I can lose that home a few years down the road then maybe that mortgage shouldn’t be that easy.
Time was, getting any kind of loan involved being able to assure the lender that you can make repayment. The problem with this mortgage thing going on now is that it looks very much like they’ve stopped bothering with that and made it a lot easier for people to get the financing… and then when somebody finds themselves unable to make payments that they really weren’t ready for in the first place, the lender comes in and forecloses the loan and takes the home. The family in question loses everything they’ve put into it and the lender has a home that they can turn around and sell at a profit. Not only that, but if they handle the financing on it for the new buyer they have a chance of pulling the same stunt with them.
Reforms making it harder for this kind of thing to go on should have been put in place a long time ago but of course politicians can’t put a fire out until the barn has burned to the ground.
WASHINGTON â€” President Bush on Friday announced a set of modest proposals to deal with an alarming rise in mortgage defaults that have contributed to turbulent financial markets over recent weeks.
Housing analysts said it was highly likely the limited steps Bush outlined will be expanded in coming weeks by a Democrat-controlled Congress intent on responding to growing voter anxiety as up to 2 million homeowners worry about losing their homes.
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