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If you have any pity for the banks...

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Services for Real Estate Pros with Marte Cliff Copywriting

...or if you thought perhaps the bail outs were justified, you need to read this article and  see this video.

Former Georgia Governor Roy Barnes is my new hero - a man who was willing to sacrifice his political career to do what was right vulturefor the state of Georgia. Unfortunately, the lenders had enough financial clout to get him out of office and undo the good he'd done.

We've always heard about predatory lending, but I for one didn't realize just how bad it was. 40% interest on a second mortgage!!??

I know, people didn't need to sign. But these vultures were preying upon those least able to understand what they were signing.

Pity the banks? Not me!

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Raymond E. Camp
Ontario, NY

One of the many ways the top echelon of business and government trying to break peoples backs!

Jun 14, 2012 06:18 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Hadn't heard of 40% interest on second trusts.  My guess is that is not the norm.  I'm not one to pity the banks, but I'm also a little less empathetic than most when it comes to laying the blame solely on them.  As Mom says, "It takes two to tango."  

Jun 14, 2012 06:24 AM
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee 423-677-6677

Got no pity here.  I agree with Raymond above me.  Hope your week is going great and keep those posts coming!!!

Jun 14, 2012 06:24 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Raymond - the video is careful to avoid placing blame in Washington, but it sure shows outraged resistance to prevention of predatory lending.

Chris Ann - I do agree with that sentiment. But what I think people like you and I forget is that not everyone has the intelligence or the education to know when they're being scammed. Yes, some reasonably intelligent people took loans they should not have taken, but they weren't the primary target for the kind of abuse that went on in Georgia (and other states.)

We should probably pity the investors. These banks told them they were investing in "A paper" when it was actually subprime. Of course, they could have investigated, especially after they looked around and saw who was buying the bulk of the houses.

Cindy - Thanks - and the same to you!

Jun 14, 2012 06:40 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

That is very high. But the people who kust walked away from what they owed on rheir home caused many more people to lose their homes because of the glut of homes on the market.

There were other factors but it does not excuse the preditor lenders.

Jun 14, 2012 07:16 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

William - I agree. This is a many-faceted situation. But I wonder... if they had not built a "house of cards" on top of the predatory lending, would there have been a feeding frenzy that caused prices to escalate to unnatural heights?

And if they had not sold loans to people knowing that they wouldn't be able to meet the payments, would the foreclosure dominoes begun to fall - causing prices to come crashing back down?

Most people who buy homes don't do so with the idea of walking away. Many probably would not have done so if the values hadn't dropped so dramatically.

I don't know. I think honesty and integrity at all levels probably would have prevented this whole bad scene.

Jun 14, 2012 07:24 AM
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