N.C. faces foreclosures despite tough...

N.C. faces foreclosures despite tough mortgage laws

There are 19 comments on the Asheville Citizen-Times story from Jan 28, 2008, titled N.C. faces foreclosures despite tough mortgage laws. In it, Asheville Citizen-Times reports that:

North Carolina's tough mortgage laws, enacted almost a decade ago, have helped the state weather the foreclosure crisis better than most.

Join the discussion below, or Read more at Asheville Citizen-Times.

Laura Owens

Appleton, WI

#1 Jan 28, 2008
Why is it a mortgage brokers fault that someone bought more house than they could afford?? Is it a car dealership's fault if someone buys a car and it is repossessed? If the buyers knew the payment, the rate, knew the potential for ARM adjustments, and everything else covered by a closing attorney at closing, isn't that the buyer's decision? You can't legislate common sense. I don't want NC legislation to decide what I can eat, charge on my credit card or buy. That is my decision. New laws enacted Jan. 1 make it tougher for folks to get a mortgage. I'm not sure how that helps.
Thomas

Shelby, NC

#2 Jan 28, 2008
I agree Laura....

The people who took the sub-prime loans and/or bought more than they can afford, are the ones at fault.

I know some will argue that the terms were not explained clearly enough, but still the people had to know that getting a large loan with low payments had to have some 'strings' attached.
Jake

Asheville, NC

#3 Jan 28, 2008
Laura Owens wrote:
Why is it a mortgage brokers fault that someone bought more house than they could afford?? Is it a car dealership's fault if someone buys a car and it is repossessed? If the buyers knew the payment, the rate, knew the potential for ARM adjustments, and everything else covered by a closing attorney at closing, isn't that the buyer's decision? You can't legislate common sense. I don't want NC legislation to decide what I can eat, charge on my credit card or buy. That is my decision. New laws enacted Jan. 1 make it tougher for folks to get a mortgage. I'm not sure how that helps.
Many mortgage brokers seduce clients into thinking that they can afford a loan and the client mistakenly trusts them. This problem is caused by ignorant homeowners and deceitful lenders. By contract, it is the home or auto purchaser's responsibility but it is unethical for a lender to sell a service that he knows will harm a client. An industry that is deceitful needs regulation.
Ghost Dog

United States

#4 Jan 28, 2008
Reagan took the regulations off the banking industry and allowed the Savings and Loans to go under as a result of his "VooDoo" economics. Bush is the same way and the whole mess is because the mortgages were not held by local banks but sold several times with Bear Sterns and others making money for their stock holders, etc, during the sales. It was a ponzie scheme, sort of like a pyramid scheme and the homeowners and taxpayers were left holding an empty bag while the CEO's and investors with inside knowledge made out, along with real estate agents, developers, etc. who got out while the scheme was doing good. Just like cars, you can spray a cheap paint job on one, put on some fancy wheels and sell it to an unsuspecting, gullible person. People with no money, no credit and no assets/equity in anything were allowed to buy expensive, overpriced houses with ARMs that tripled or quadroupled the original payments as the interest rose from 3.5% to 10%. What was it PT Barnum said about fools? But the repugs ran the scheme, made it possible with deregulation, nobody watching the bank, the books or enforcing regulations, no "oversight"!

Since: May 07

Sherrills Ford, NC

#5 Jan 28, 2008
Bush promoted home ownership as the way for citizens to improve their lives and this is the thanks he gets. I bet he can't wait to get out of the WH! What a thankless job president of the United States is. Makes me wonder why anyone in their right mind would even consider it!
Fred

Auburn, AL

#6 Jan 28, 2008
mlc9852 wrote:
Bush promoted home ownership as the way for citizens to improve their lives and this is the thanks he gets. I bet he can't wait to get out of the WH! What a thankless job president of the United States is. Makes me wonder why anyone in their right mind would even consider it!
Well, have you seen the crop of people who are running for the President? Are any of them in their right mind?
Fred

Auburn, AL

#7 Jan 28, 2008
Ghost Dog wrote:
Reagan took the regulations off the banking industry and allowed the Savings and Loans to go under as a result of his "VooDoo" economics. Bush is the same way and the whole mess is because the mortgages were not held by local banks but sold several times with Bear Sterns and others making money for their stock holders, etc, during the sales. It was a ponzie scheme, sort of like a pyramid scheme and the homeowners and taxpayers were left holding an empty bag while the CEO's and investors with inside knowledge made out, along with real estate agents, developers, etc. who got out while the scheme was doing good. Just like cars, you can spray a cheap paint job on one, put on some fancy wheels and sell it to an unsuspecting, gullible person. People with no money, no credit and no assets/equity in anything were allowed to buy expensive, overpriced houses with ARMs that tripled or quadroupled the original payments as the interest rose from 3.5% to 10%. What was it PT Barnum said about fools? But the repugs ran the scheme, made it possible with deregulation, nobody watching the bank, the books or enforcing regulations, no "oversight"!
An OBVIOUSLY CLUELESS comment! NONE of these loans resulted in triple the original payments. Get a clue or shut up.
Tre Tailor

Swannanoa, NC

#8 Jan 28, 2008
Laura Owens wrote:
Why is it a mortgage brokers fault that someone bought more house than they could afford?? Is it a car dealership's fault if someone buys a car and it is repossessed? If the buyers knew the payment, the rate, knew the potential for ARM adjustments, and everything else covered by a closing attorney at closing, isn't that the buyer's decision? You can't legislate common sense. I don't want NC legislation to decide what I can eat, charge on my credit card or buy. That is my decision. New laws enacted Jan. 1 make it tougher for folks to get a mortgage. I'm not sure how that helps.
Comparing mortgages to buying cars is like comparing apples and oranges. The car dealer doesn't know if you will qualify for a loan or not, whereas a mortgage broker holds all the cards. They knew what kind of mess we'd be in now, but chose to ignore it due to their own greed.
asheville cat

United States

#9 Jan 28, 2008
Laura Owens wrote:
Why is it a mortgage brokers fault that someone bought more house than they could afford?? Is it a car dealership's fault if someone buys a car and it is repossessed? If the buyers knew the payment, the rate, knew the potential for ARM adjustments, and everything else covered by a closing attorney at closing, isn't that the buyer's decision? You can't legislate common sense. I don't want NC legislation to decide what I can eat, charge on my credit card or buy. That is my decision. New laws enacted Jan. 1 make it tougher for folks to get a mortgage. I'm not sure how that helps.

YES, IT IS THE MORTGAE BROKERS FAULT IN MOST OF THESE CASES. THEY ARE SUPPOSED TO BE TRAINED TO KNOW TO REFUSE LOANS TO THOSE WHO DO NOT HAVE THE CREDIT OR THE MEANS TO PAY FOR THESE HOMES.
GDL

United States

#10 Jan 28, 2008
Does anyone have a MTA, negative amortization loan? They started at 1% interest and what are they now? How much has your balance gone up while you paid the minimum payment. How big is your pre-payment penalty? Banks stuffed their balance sheets with these products because they are great for the bottom line, and they get paid by how their bottom line looks! The same for ARM mortgages.
native

Asheville, NC

#11 Jan 28, 2008
Tre Tailor wrote:
<quoted text>
Comparing mortgages to buying cars is like comparing apples and oranges. The car dealer doesn't know if you will qualify for a loan or not, whereas a mortgage broker holds all the cards. They knew what kind of mess we'd be in now, but chose to ignore it due to their own greed.
Agreed...The people in the biggest mess right now are not the middle class folks that knowingly bought too much house...there are some of them and they deserve no sympathy...the real losers are the uneducated, lower income families who were dazzled by unscrupulous brokers into believing they could afford it...

Why are we surprised?

The bank approves a 5 year arm.
The homeowner can't make payments after 5 years
The bank gets the property

hmmmmm...who wins here?
Fred

Auburn, AL

#12 Jan 28, 2008
Tre Tailor wrote:
<quoted text>
Comparing mortgages to buying cars is like comparing apples and oranges. The car dealer doesn't know if you will qualify for a loan or not, whereas a mortgage broker holds all the cards. They knew what kind of mess we'd be in now, but chose to ignore it due to their own greed.
And what about the GREED of those who were buying these houses? Don't forget that at least some of these buyers were smart enough to know what they were doing. But then you people want the government to protect everybody from their own stupidity and greed.
Fred

Auburn, AL

#13 Jan 28, 2008
asheville cat wrote:
<quoted text>
YES, IT IS THE MORTGAE BROKERS FAULT IN MOST OF THESE CASES. THEY ARE SUPPOSED TO BE TRAINED TO KNOW TO REFUSE LOANS TO THOSE WHO DO NOT HAVE THE CREDIT OR THE MEANS TO PAY FOR THESE HOMES.
Always someone else at fault isn't it? What happened to being responsible for YOURSELF? Not to worry if I do something STUPID. The government will bail me out--RIGHT?
Candler Boy

Orange Park, FL

#15 Jan 28, 2008
asheville cat wrote:
<quoted text>
YES, IT IS THE MORTGAE BROKERS FAULT IN MOST OF THESE CASES. THEY ARE SUPPOSED TO BE TRAINED TO KNOW TO REFUSE LOANS TO THOSE WHO DO NOT HAVE THE CREDIT OR THE MEANS TO PAY FOR THESE HOMES.
It is not the mortgage brokers or lenderss fault at all. It is the consumer's fault. They should educate themselves before they even attempt to purchase a home. We are talking about adults, not 12 year old children. Use your brain and take responsibility for your ADULT decisions! Nobody can force someone to take out a mortgage. They need to read what they sign at the closing. That is assuming they can read!

“Why do ya need to know that?”

Since: Feb 07

Leicester

#16 Jan 28, 2008
Jason Simmons wrote:
<quoted text>
It is not the mortgage brokers or lenderss fault at all. It is the consumer's fault. They should educate themselves before they even attempt to purchase a home. We are talking about adults, not 12 year old children. Use your brain and take responsibility for your ADULT decisions! Nobody can force someone to take out a mortgage. They need to read what they sign at the closing. That is assuming they can read!
A person has got to be stupid as all get out to sign a mortgage note and not read up and educate themselves on it.

I blame the mortgage brokers for offering ridiculous mortgages, but I also blame people (more so) who dont take the time to educate themselves on what they are doing and leave it up to others who are definitely NOT working in the buyer's best interests.

Common sense tells you that if you clear $3000 a month, a mortgage cannot be all of it. Same as if you clear $1500. A mortgage used to be based on a certain percentage of your income per month and credit worthiness. Have no idea what they base it on now. Maybe the full moon.

Caveat emptor. Let the buyer beware. If it sounds too good to be true, it is!
native

Asheville, NC

#17 Jan 28, 2008
Fred wrote:
<quoted text>
Always someone else at fault isn't it? What happened to being responsible for YOURSELF? Not to worry if I do something STUPID. The government will bail me out--RIGHT?
Most of these cases are poor, working class folks who are really trying to better themselves and their families by buying homes...when the broker becomes the authority figure because the buyer is simply too uneducated to know that he's not being looked after...that is sad...

...and, there is a huge language issue in many cases...which opens up a whole other can of worms...no matter which side of it you fall on, it becomes all of our problem...
Notation

Greenville, SC

#18 Jan 28, 2008
Fred wrote:
<quoted text>
Well, have you seen the crop of people who are running for the President? Are any of them in their right mind?
Just one.
TJ in Dallas

Dallas, TX

#19 Feb 4, 2008
asheville cat wrote:
<quoted text>
YES, IT IS THE MORTGAE BROKERS FAULT IN MOST OF THESE CASES. THEY ARE SUPPOSED TO BE TRAINED TO KNOW TO REFUSE LOANS TO THOSE WHO DO NOT HAVE THE CREDIT OR THE MEANS TO PAY FOR THESE HOMES.
I just saw a news report telling the "sad" story of a woman who makes $38k a year and purchased a $750,000 home on an arm loan. Now, one could argue that it is the lender's/broker's fault for approving this loan because of the obvious lack of income. What people are not doing though is holding the consumer accountable for their choices. I can be an absolute moron and still know that I can't afford a $750k home making 38k gross. That's just greedy, stupid and retarded. It's true that some of these people have been taken advantage of and it is indeed sad. We still can't negate the fact that at some point we must be accountable for our own choices and actions. Also, some of the arm loans were given to people who had credit issues when they purchased their home and could not qualify for a regular mortgage. These people knew that they would have to use the arm period to "fix" their credit. Some of these people can't refinance simply because they have the same repayment habits as before therefore they have the same bad credit. I have no sympathy for these people either. I would venture to say that there is a larger number of people in one of the two situations I just mentioned that the media is willing to cover. It makes sense that they would not want to cover it in this light. Think about it, who wants to watch the news and see an entire panel of speakers tell Americans how greedy, selfish and stupid we are. We'd much rather live the high life and go on impulsive splurges and then say we were "tricked". Wake up people, God gave you a brain...use it!
greg m

Schaumburg, IL

#20 Nov 27, 2008
i spoke with a mortgage broker regarding a loan that started at about 2% and then increases over a period of time. " a negative amorazation loan"
I let him babble on with his bullshit for 20 minutes. The loan was a commercial loan for $85,000. I needed to do a refinance. i finally asked him a how much i would owe after the 2 year period was up. it came out to be alot more than the original $85,000. He would have never told me if i did not ask. The closing costs were outrageous also. A total ripoff loan that should be outlawed. They exploit people with these loans and other types of bullshit loans with there deceit. And when the borrower signs on the dotted line and its to late, people point the finger at the borrower and blame them saying they should have known better. It was probably there first loan in there life and were conned by a broker who probably has done hundreds of loans.
The mortgage industry is full of alot of slime balls who should be lined up against a wall and machined gunned to death!!

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