Quote:
Originally Posted by ZeroJunk
To make your notion of all this work the borrowers had to either borrow money that they knew they could not pay back, or not be intelligent enough to know what they were committing to.
I don't think the latter was the case at all. I started to buy a trailer park about that time, partly because it joins one of my properties. But hell, you could buy a house for the combined cost of water, rent, etc. So, it was only about half full and I thought why would anybody move here.
So, you buy a house for whatever your apartment rent is or less and live there some unknown period of time. Maybe eventually you had to move out. But, what did you lose besides the trouble.
I think these people knew exactly what they are doing.
There is such a thing as taking responsibility for your actions, although there is no such thing to the left.
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Bull shit. One of our employees fell into this trap buying a house that was around 80 miles away from our company. He even talked a couple of other employees into doing this, including his younger brother who also worked for us. I had to loan him $17,000 just to be able to sell his house and get out of his loan obligation a few years later.
Guess why?
Zero down, interest only loan, at the end of five years market rate interest, whatever that means. So this guy after five years could not make payments and house was worth a lot less than what he paid.