Of course the lender is making money..lol. Bad loan or not. They make money on the interest and all the fees they charge. If the owner defaults on the loan they still make money in the foreclosure process..
Lexus you I and both know that what has happened as a direct result of the lenders practices, ..............
Originally Posted by Bebe Le Strange
First (last), how do you "know" what I "know" .... ..... you don't! Not a clue!
Secondly, this statement makes no logical sense:
"Of course the lender is making money..lol. Bad loan or not."
Lender A loans Borrower B $100,000 at 5% interest with payments of $1,200 a month on a "95% loan."
Borrower B makes 12 payments and defaults ... that's $14,400 paid.
So how does Lender A make any money? That is a "shortfall" of about $85,000!
Foreclosure?
The Lender bids in the house and takes care of the house in ORE, while trying to sell it ........ empty and trashed from the Borrower B, who abandoned the house in trashed condition (typical of foreclosures).
The house resells at 70% of the Borrower B's purchase price after paying $10,000 to $15,000 in attorney fees, foreclosure fees, trustee's commissions, and closing costs ........ a conservative estimate.
How has the Lender made any money on a "bad loan"?
Have you ever heard of a "deficiency" law suit?
So, no I do not agree with you. Like I said: you are a participant in the real estate mortgage business scam and fraud upon the public (as you claim), and I recognize that it is "easier" for you to blame others than blame yourself. If you really believe that the borrowers are not at fault, then you should look yourself in the mirror and point your finger at yourself, rather than at some obscure "investment banker"!
But the bottom line is that people who borrow money they cannot repay ... for whatever their motivation ... do so of their own free will and voluntarily. People should hold them selves accountable for their decisions .. good and bad. ... instead of trying to find someone to blame for their own bad decisions.