homeowners win case against bank

[syrenn]

I know some young couples that ended up loosing their homes. Many that looked into buying homes, after all the paperwork etc, were told with their income to debt ratio, they WERE eligible for the mtg. Some banks are very good at telling young, unknowing, couples that with their income at the time all would be well. But, the banks don't reveal to them the costs associated with the mtg, like insurance, taxes, utility bills, property taxes, etc. They look at their GROSS income, which does not include the taxes taken out or anything else that automatically come out of their checks, so they are bringing home WAY less and once strapped with a mtg payment they realize this isn't going to work so well! I know it's hard to believe for some, but many young married couples are not that knowledgable about the mtg process and they tend to depend on the banks to help them.....which is their FIRST mistake. I think most people come out of it thinking that they can afford it, because the banks told them they could. A lot of people don't really look into the process or cost of it beforehand...they trust the banks to reveal everything to them. The people i know that have gone through this did NOT do it knowing they couldn't afford it.

Also, some foreclosures are made by people that CAN afford it, but when their homes dropped in value so they owe twice what it's worth, they just walk away....it's considered then a bad investment of their money and it's cheaper to just let it go.

I do not believe this is just a "right" or "left" problem or that it was just one side or the other that made it happen. Truthmatters is wrong for saying it's because of the "right"...it's BOTH sides. And it's BOTH sides that have to fix this.

It is not the banks job to tell anyone about living expenses.... for example insurance, taxes, utility bills, property taxes, etc..... it is rather common sense that your monthly outlay will be more then the mortgage alone.

I am pretty sure all young people know that if you sign a car loan and cant pay it that the bank will reposes the car. A house with a mortgage is no different.

It is also not a bank issue if your home drops in value. They signed on the loan for a amount of money.... to be paid monthly. ....end of story.


The problem as i see it is greed on the part of people wanting more then they can afford.

I agree with you ... to a point. I don't agree that ALL young people know all of this. Yes, buying a car is not quite as big of a deal as buying a house, and they know the car will be repossessed if not paid. I'm sure also they know if they don't pay for their house it will be lost too. I'm saying that i know some people just don't understand all the costs involved when buying a home, and many are caught by surprise because they didn't investigate everything before jumping into a loan like this. I agree...the banks are not obligated council people on the loan they want to take, it's not their job. But not all young people KNOW any of this, and they don't have other adults to forwarn them of the problems they could get in to. Not everyone has the "common sense", and the banks don't care that they don't.

Many that have lost their homes is because they've lost their jobs. This is not their fault, so to say everyone that has gone through foreclosures deserve it is untrue. (i'm not saying that you said this, but many people do). It's not always greed...it can also be plain ignorance of how it works or just plain bad luck too.

And who's fault is it that they do not know about living withing their means? The banks? I think not. Buying a home is a gamble.... they gambled and lost.

The banks don't care if you lose your job. It is sad... but it is not their problem. They signed a loan for X and to pay X a month. Pay or lose the home to foreclose...end of story.