Comments on: Mortgage borrowers “helped” — at mortgage borrowers’ expense https://www.overlawyered.com/2015/01/mortgage-borrowers-helped-mortgage-borrowers-expense/ Chronicling the high cost of our legal system Thu, 29 Jan 2015 03:19:46 +0000 hourly 1 By: ras https://www.overlawyered.com/2015/01/mortgage-borrowers-helped-mortgage-borrowers-expense/comment-page-1/#comment-318654 Mon, 26 Jan 2015 21:49:18 +0000 http://overlawyered.com/?p=50381#comment-318654 As with any other good or service, if you can’t afford it, you shouldn’t buy it in the first place; as true of mortgages as of anything else.

]]> By: Boblipton https://www.overlawyered.com/2015/01/mortgage-borrowers-helped-mortgage-borrowers-expense/comment-page-1/#comment-318653 Mon, 26 Jan 2015 21:42:11 +0000 http://overlawyered.com/?p=50381#comment-318653 No need to allocate blame, Density. There’s plenty of it to go around, from Congress to the regulators to the banks to the people who borrowed money to play musical chairs. The real issue so far as I am concerned is that the people on high who set the game in motion did not bear any consequences — except for Alan Greenspan, who was having trouble refinancing a mortgage. Everyone but me seems to think that is a glitch in the market. I prefer to think of it as karma.

Next time around, folks, bear in mind: the reason to buy a house is because you wish to own a house. Learn the difference between the words “investment” and “speculation”.

Bob

]]> By: DensityDuck https://www.overlawyered.com/2015/01/mortgage-borrowers-helped-mortgage-borrowers-expense/comment-page-1/#comment-318647 Mon, 26 Jan 2015 19:13:06 +0000 http://overlawyered.com/?p=50381#comment-318647 Buried in the article are mentions of refinances. While they don’t actually say “cash-out”, I can’t imagine there would be anything else. Which means that, for the most part, the bank might have handed them a shovel but the owners dug their own holes.

]]> By: Death and Taxes https://www.overlawyered.com/2015/01/mortgage-borrowers-helped-mortgage-borrowers-expense/comment-page-1/#comment-318638 Mon, 26 Jan 2015 17:02:54 +0000 http://overlawyered.com/?p=50381#comment-318638 Check your privilege, gasman. Your reason and risk allocation have no place here.

]]> By: gasman https://www.overlawyered.com/2015/01/mortgage-borrowers-helped-mortgage-borrowers-expense/comment-page-1/#comment-318632 Mon, 26 Jan 2015 15:36:25 +0000 http://overlawyered.com/?p=50381#comment-318632 “That in turn means that risky borrowers either have to pay that premium or get rationed out of the market altogether.”
And that would be a good thing, would it not? It seemed with the ’08 mortgage bubble one major problem was that it was a game of musical chairs, with everyone in the game knowing that there was a ton of bad debt, but each party believing that they could successfully pass the buck in time.
This practice now merely fines who shall be the looser in advance, and now the true cost of each mortgage might actually be incorporated in the original transaction. High risk borrowers should pay more.

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