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  • Duke

    March 19, 2010 9:19 a.m. Duke SuperDork

    Basil Exposition wrote:

    No. Just no. The Bank isn't lending money to the house, it is lending money to YOU. The Bank takes security to minimize its loss in case you turn out to be a deadbeat. It is very simple. When you sign a mortgage note it doesn't say "I'll either pay you back OR give you the house." It says "I will pay you back and I give you the house as collateral to secure my solemn promise." Is it dishonest not to pay it back? Yes, if you are able to pay it back and you don't. You've taken someone else's money that you promised to pay back and you didn't. That's dishonest. Of course, there are unforeseen circumstances that may make you unable to repay the loan and those aren't being dishonest, they are just tough luck for everybody.

    THIS.

  • Dr. Hess

    March 19, 2010 9:28 a.m. Dr. Hess PowerDork

    But z31maniac, we must help out the irresponsible people. Not everyone is born responsible, you know. There are those born with the disadvantage of being irresponsible, and to help them out, we have to take away the things from the responsible and give them to the irresponsible so that we will have equality.

    A lot of people got mortgages that should not have. I think most will agree with that (besides ACORN) I propose that Uncle Bill and the rest knew exactly what would happen if all these "don't ask, don't tell" mortgage rules were put in place. And, BTW, from my reading, it appears that the enforcement mechanism was FDIC insurance. If a bank didn't have so many of these loans to minorities, regardless of the quality of the loan (ability to pay the loan back), the bank lost it's FDIC insurance, which would effectively put it out of business. There was (is) a bank in Dallas that I read about. They had to strive to find minorities to loan money to that actually were good credit risks for the bank. They really went the extra mile to make sure they would get their money back and that the property was worth the mortgage. They did fine in the crash. Go figger, huh?

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