Quote:
Originally Posted by mynameisjim
Just a quick note about whose fault it is for the home loan default issues brought up in this thread.
In that scenario, the banks were the professional entity so the burden of responsibility is on them. The borrower is the lay person.
It's exactly the same if you were to go to a doctor and he prescribes you a deadly combination of medicine. Is it your fault for not reading up on the medicine he prescribed? Of course not, the doctor is a professional and therefore the burden of responsible behavior is on him.
It's been a basic rule of our society that the professional entity in any transaction carries more burden of responsibility than the lay person in that transaction.
If I walk into a local bank and ask for a $1 billion dollar loan and they give it to me. Then when I can't pay it back the bank goes out of business, is that my fault or is that the bank's fault?
Not to mention, the reason the banks were giving out those terrible loans is because they just needed the loans to perpetuate their scam of reselling the loans over and over again.
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Shhhh, people like to believe it was the banks actually making the loans and not just initially funding them and selling them off to retirement funds while getting paid fees for putting it together and then only servicing it (for more fees) ...making it still look like their loan. Nobody talks about MERS anymore.
There was every incentive for them to push through as much garbage as they could.
To the person who asked if a bank still makes money in a foreclosure the answer is no. They do if they're only servicing the loan as the costs, with their fees on top, is paid for by the owner... or the multiple owners since shitty loans were securitized.