I Hate The News...

[stevis78]

Especially that on BBC America.  They're just like ABC, CBS, NBC, and CNN.  They ran a segment called Foreclosure: Credit Victims.  Credit Victims?  Well, I thought this was a company kidnapping people in extreme low-income neighborhoods and forcing them at gunpoint to buy a house.  Or, I was thinking that some company breached the terms of the

Comments

[stevis78]

"Its true that banks are in a business to make loans but they're supposed to examine these people first before they give away loans like candy. YOu want to give loans to responsible people who will pay back not people who have no business receiving these loans."

Absolutely. My point is that both parties have to take preventative measures, and neither did so. The mortgage company didn't screw her, they screwed themselves because they made a deal that would have (and did) screwed them had it gone south. The chances were just too great, and, well here we are. It is in the bank's best interest to not make these deals, I agree.

" I think that the fact that only 12% of the population can read a contract means that there is something wrong with the education system. Its not teaching things that are relevant to peoples' lives. I'm not surprised that only 12% of the population can read contracts. I think when I see a lot of people sign contracts for a cell phone or whatever, most of them don't even read the thing, they just sign it."

Yeah, I never learned how to do this while I was in school. I learned from experience and from my parents on how to do this. Especially my stepmother. She's notorious for getting all the details down. Nothing gets past her. Both educators and parents need to take more of an interest in teaching their children as much as they can about the real world. That way they have a chance.

I work at a storage facility on Saturdays, that's my side job. I started out doing this as a favor to the owner once in a while, and it blossomed into a weekly thing. Anywho, I run into people all the time who are surprised , even shocked by circumstances that arise. Late fees because they're late, authorized access, stuff like that. And they were shocked because they didn't bother to absorb the conditions in the contract. And all of this stuff is clearly stated in the lease. I always want to say, "It's all in the lease that you do diligently signed and agreed upon." But, the customer's always right...

[nighthawkal]

In this case, from what you describe in this story, I think both of them were equally stupid. She's stupid for getting a house that she definitely can't afford and the bank is stupid for giving her the loan. What kind of standards are they using if someone like her is getting a home loan for that much? Of course, you would expect and hope that the bank is smarter than the loan applicant and that the bank uses some sort of standard for giving out loans. Some people who know nothing about economics and about getting loans from a bank, may think they can actually get that loan. Its up to the bank to be smart and not give that loan to that person. I saw stories similar to the one you mentioned on CNN and a lot of these people in these situations really are stupid.

Its great that you have parents that have that knowledge but there are a lot of people out there that have parents that are clueless about economics and credit. How many people in this country have excessive amounts of credit card debt because they just use their card for everything and buy things they don't need. There are people out there that don't have money for basics but then they'll get a 50 inch TV or something excessive like that.