Care I think if you read some of my other posts you will see I am not saying the banks don't have an equal part in this mess. However, as a homeowner, which by rights will be or should be one of the largest purchases in your entire life, there should be some room there for people to have a little knowledge about what they are doing in the process. I too have a VA loan , so know how the process works. However, I still knew that the home I purchased as to the amount of income I made i.e. monthly would fit in my budget. I will give you an example, lets say a couple looks at a home that was 300,000.00 and they make 35,000.00 a year. They got a 3 year ARM to get in and were happy because they were paying 650.00 a month for three years , then in the 4th year their payments went up to 1917.00 a month. Which is the actual reflection of what the homes original value was., so as a buyer, hey were responsible for knowing that the income they brought in could afford the home they purchased. Now while it's a given that from a marketing standpoint and lending standpoint these lenders were out there handing these things out like popcorn. However, in the end, its the buyer that is the one should be aware of what that are doing.
Caveat emptor is Latin for "Let the buyer beware".[1] Generally caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.
I'm telling you that they WERE MOST CERTAINLY TOLD by the mortgage brokers that when the adjustable rate was to go up, that they could refinance in to a conventional mortgage that they could afford and without PMI too.....
I SAW IT, on the show house hunters, where the mortgage lenders would sit down with naive white couples telling them that this is what they could do 3 years down the road.... all of these couples went the way of what they were advised by the banks....
I sit and wonder now, if all of those couples are not sitting in a situation of foreclosure and bankruptcy and very high credit card interest because of it or without anything because of it....
and look at my user id....hahahahaha...CARE 4 ALL.....I just can't help it