If you asked me I would say that the people that are really getting screwed are the borrower and the stock market investors. Some of them might even go to jail. it not going to be pretty!

What’s in your wallet?

Lucky for me I could afford to still make the payment of the truck they didn’t pay off as promised and make mortgage payments so not to get behind or default, They didn’t pay the insurance on the home but they did pay the taxes, they can’t answer questions about what happened to the money that’s missing from the closing since they didn’t pay off things as promised. They change the interest rate, they changed the cash pay out from 6 thousand to 3 thousand, all this after the signing/closing.

I would think it would be better to rent forever then to put your dreams and money in to a home you can never own. If some one can’t afford a home that’s one thing, but when you get hit by a lender that only wants your home at any cost and they do every thing they can to get you up to your eyeballs in debit by not paying off you other bill. So the next thing you know instead of just having one payment you not have 3 or more still.

Predatory lending is a night mare that you can’t find any help to recover from. no help from the government, the FTC sucks, try getting help from HUD, that’s a joke. ask the AG for help, get no reply. we have no one that will enforce the law. I know I tried.

The only right we have is to sue the lender, IF you can fine a good attorney or do it yourself that was a full time job!

That’s just a very small part of my nightmare with predatory lending.

RENTING?! For the love of God, not that! Anything but that! I’m a renter; I guess I must be sub-human. It’s too late for me, but the rest of you–save yourselves! You can still get pay option ARMs with FirstFed!

To me the original post represents a bizarre, contradictory perspective. We’re to congratulate government-piloted initiatives to “expand home ownership” and pat ourselves on the back for the concomitant economic boom (wait, is that still the free market?); but we are not to acknowledge that this policy could lead to any sort of over-stimulus, and an economic “boom” that is simply an illusion?

You’re right, the story isn’t “predatory lending”. That’s only a small part of it. Much bigger is the popular greed that the plethora of foolhardy loan tools of recent years abetted: first-time buyers bought even earlier, flippers flipped with greater ease, and the “working poor” got to flaunt the trimmings of prosperity before actually achieving it.

Government needs to stay out of housing. Home ownership isn’t a virtue or a right. It’s a market transaction, like any other (except bigger and more serious). No more fake regulation. No more tax incentives. No more propaganda. It has only driven us to ruin (and you ain’t seen nothing yet).

Of course, the deeper problem is our centralized banking system. In the short term, it’s always easier and more profitable to extend loans (little or no questions asked), because extending loans is simply creating money out of thin air, an intrinsic operation of our Federal Reserve banking system. If there’s a mass financial disaster, the banks can always rest assured that the government will “bail them out” (with the public’s money), because we wouldn’t want a banking crisis, you know.

Morning Edition, June 19, 2007 · Roland Arnall, the U.S. ambassador to the Netherlands and the founder of mortgage lender Ameriquest, may soon get pulled into a lawsuit over predatory lending.

Ameriquest customers say the company steered them into predatory loans — and many involved in an ongoing class-action suit wants Arnall, a billionaire who is currently the U.S. ambassador to the Netherlands, held personally liable.

Related NPR Stories
May 30, 2007
Ameriquest Faces Lawsuit by Borrowers
May 14, 2007
Former Ameriquest Workers Tell of Deception

NPR : Predatory-Loan Suit Could Hit Ameriquest Founder

Maybe there is something rock solid in the wisdom gained from a man who spent his afternoons “spiffed” with a six foot tall rabbit….

Perhaps the credit that is being made available for mortgages would not be at risk to such a degree were it not for the near collapse of disciplines in the area of other credit; limitless credit to purchase anything from a meal at McDonalds, a fancy new set of rims to go on the new car with a 72 month note and the vacation to Disney World. The desire to spend above the means to repay is where I have seen the use of predatory financing, a way to entice long term debt under the “you deserve it now” emblem.