Mortgages aren't "moral obligations". They are simply long-term contracts. And as such, they can and should be canceled as needed, with certain penalties that occur when they are canceled.
People have this strange idea that contracts are "an absolute" obligation. They are not. They are conditional and can be canceled as needed.
Consumers should become more educated about their rights and standard business practices.
To those foolish enough to blame the homeowner for buying over their heads:
Who has the power in the relationship with the banks?
Who developed the system for people who could not afford homes to obtain a home loan?
Who lied to the prospective homeowner, telling them that if they don't buy "now" the house will be out of their reach if they wait any longer?
Who told the prospective homeowner that after home purchase, it will be valued at $100,000 more than they paid for it in a year, allowing them to refinance?
Why blame the individual who is reaching for the American dream and at the same time being lied to by the real estate agent, as well as the loan officer whom they trusted?
You have to remember the context of the housing bubble. There was a great fear in many that at the rate that homes were rising in value, that they would be priced out of ever owning a home.
The housing bubble was pre-meditated; Investment banks in cahoots with their friends in the WH created the environment for the bubble to occur. The floodgates opened by the repeal of glass-stegall.
The housing bubble was another devised ponzi scheme for the few who created it while the masses hold the bill.
The Obama administration needs to pressure banks to reduce the principal on homes to the value they were at the time the fed lowered the prime rate to 1% in 2002.
Who has the power in the relationship with the banks?
Who developed the system for people who could not afford homes to obtain a home loan?
Who lied to the prospective homeowner, telling them that if they don't buy "now" the house will be out of their reach if they wait any longer?
Who told the prospective homeowner that after home purchase, it will be valued at $100,000 more than they paid for it in a year, allowing them to refinance?
Why blame the individual who is reaching for the American dream and at the same time being lied to by the real estate agent, as well as the loan officer whom they trusted?
You have to remember the context of the housing bubble. There was a great fear in many that at the rate that homes were rising in value, that they would be priced out of ever owning a home.
The housing bubble was pre-meditated; Investment banks in cahoots with their friends in the WH created the environment for the bubble to occur. The floodgates opened by the repeal of glass-stegall.
The housing bubble was another devised ponzi scheme for the few who created it while the masses hold the bill.
The Obama administration needs to pressure banks to reduce the principal on homes to the value they were at the time the fed lowered the prime rate to 1% in 2002.