WARNING: Explicit truth told here.
Think it's a joke?
Virtually everyone jumped on the backs of the mortgage banking world when the CNN generation started firing fatal shots. You didn't hear the screaming pleas coming from the lending world for people to PAY THEIR MORTGAGE but they were there. No, the people just kept buying Lexus automobiles, Donzi boats, running up tens of thousands of dollars in credit card debt. Then not being able to afford the lifestyle THEY created they stopped paying their mortgage payments.
Fortunately my own company issued very few loans that "went bad" less than 1/8 of a percent of our loans have early payment defaulted. But, in the ones that did, the people were WELL qualified and demonstrated enough assets and disposable income to easily qualify for the loan - they simply chose to make a series of bad financial decisions OR simply chose to stop making their payments.
What happened?
Whether it was a Lexus or a Mercedes is immaterial but the fact remains that they did not care enough about their mortgage to pay it first and live the lifestyle second. No, they wanted that new home in that nice subdivision and they needed the status symbol to go along with it. So, damn the torpedoes and full steam ahead they got into an eight hundred dollar per month car payment PLUS insurance, maxed out their credit cards and loaded up on 12 months same as cash entertainment systems, top of the line appliances and custom made furniture and did not do a thing to prepare for it.
It's STILL About Personal Responsibility
And I am SICK AND TIRED of hearing the ENTIRE LENDING INDUSTRY BLAMED for capitulating and answering the cries and pleas of the nation with funding The American Dream. The talking heads shouted "equality!" "fair lending!" and the investors answered and provided EXACTLY what the masses (the Democrats 1988 Fair Housing Ammendment) and the media demanded.
This is EXACTLY Why those people DID NOT DESERVE THOSE HOMES
What do homes do for people? Home ownership gives the opportunity for an ordinary person to become a participant in the fabric of America. It gives them pride in their self, care and concern about their community and causes them to take a much longer look before electing politicians serving their area.
Unless they were useless to begin with ...
Take a kid out of the streets of the slum, pay for their college, give them a multi-million dollar athletic contract and watch them blow it all in a few years or even months. Watch them make stupid decision after stupid decision and kiss their career goodbye because dog fighting was more important than being a good citizen.
No, this kind of person has a much more difficult time transmutating from SHITizen to CITizen.
THEY NEED OUR HELP
For years I have begged for education not legislation. America, pay attention - you CANNOT LEGISLATE YOUR WAY OUT OF THIS.
Any ignorant senator or congressman who thinks for one second that "going after the mortgage brokers who did this" is the right thing to do needs to move their dumb-ass to podunk Mexico and grow yams.
This is all about PERSONAL RESPONSIBILITY and I guarantee you any judge with any common sense could take a look at ANY ONE of the thousands of defaulted subprime loans and say, "Why aren't you just making your payment like you agreed to do?"
These borrowers were told they needed to buckle down, pay all of their payments on time, never miss a payment, REFINANCE BEFORE THEIR ADJUSTMENT PERIOD and then start living a better lifestyle. America is in trouble and there is one REAL way out:
SUBPRIME BORROWERS: Do everything you can in your power to save YOUR home. Sell your boat, stop tossing back $60 scotch or 4 beers every night, quit smoking, eat at home, mow your own grass and do your own laundry. In other words PAY YOUR PAYMENTS, meet the obligation you entered into willingly and knowingly.
See you at the polls next November. I dare you to vote for inexperience in a time like this.
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2007 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
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