that they just signed?
Apparently not, otherwise the sub-prime debacle might not have occurred.
Of course, wily mortgage brokers, who understand this, took full advantage. The fact they collected fees from $10,000 to $30,000, and much more- whilst keeping schtum- speaks volumes about the kind of culture this country has become.
C’mon folks, it’s time to stop feeding on our young.
I mean, when car dealers take more time to go through the paperwork than the brokers, realtors, and escrow companies, you know something just isn’t right.
When it comes to signing mortgage papers- hell no, we don’t know.
What we need to do is insert a a new link in the chain- an advocate for the buyer, since that seems to have been missing (or someone curtailed a certain “committment” to their “profession”).
Most people need another professional, an advocate that can bottom line it for that person about to sign the death vow. After all, for most Americans, it is the single, biggest, most important financial commitment they will ever make.
You don’t think executives read all of their paperwork either, do you? Hmmm? That would make them responsible for the decisions they make.
Something like this is obviously needed but, of course, this might jeopardize a sale if the buyer knew the pooch getting screwed- was them.
That would be so un-American!
A Slight Quibble
As the above article also points out :
By some estimates, subprime lending has accounted for as much as half of the past decade’s rise in the U.S. homeownership rate to 69% from 65%.
Two things: if 2.4 million loans default over the next few years, as predicted, then look for that rate to drop below 65%. (The dirty “sorta” secret is, many people who already owned their house found it far too easy to re-fi and cash in on their equity, and now some face foreclosure.)
The other thing– well, IYAM, the real home ownership rate is closer to 1%. As in, that’s the number of people who actually own their home outright– who do not pay “rent to the bank.” Or “refinanced” at usurious rates.
You never really “own” it until the debt is all paid off. Sure, your name is on the deed, and all the paperwork points to you when the economy or your job goes tits up.
But don’t try to corrupt me by convincing me I should buy into the lie that tells me I own the house I live in- just because I have a mortgage.
What does “Own” mean anyway? It’s not like we can take our home- or anything else- with us when Dr. Mort comes a-callin’.
Ownership is a pretense, a falsehood. If it makes you feel good living a lie- well, welcome to the United States, I’m sure you’ll enjoy the rest of your stay here.
As the wise man once said:
You can never own beer, you can only rent it.
Applies to everything, really.