Upside Down Mortgage

Subprime Foreclosures

Question: Can I sue my bank because they will not refinance my mortgage because I no longer have equity in my house?

I had over 20% equity before the housing crash. It is gone now because of all the foreclosures caused by the sub-prime loans that THEY funded. The poeple with the subprime loans are getting rock bottom interest rates and even principal lowered. Yet I am stuck with my high interest rate because I bought a house I could afford and made my payments.

Answer: Probably not. The banks didn’t cause this problem. The government and its social engineering politicians did.

Most of the sub-prime loans were made under pressure from the government and its CRA guidelines. In many cases, the banks forgave part of their principal and lowered interest rates to avoid foreclosures. If you lost your equity because of the housing bubble burst, you would have been far worse off if we had even more foreclosures.

You should write your congressman and your senators to protest the social engineering engaged in by Washington. Banks don’t deliberately make bad loans, but they were given very little leeway by the government. So you and I paid a heavy price to keep unqualified buyers in their homes. Those of us who bought homes we could afford lost most or all of the equity in our homes, and as taxpayers and shareholders in the banks that held the bad loans, we absorbed much of what the banks lost. So we got a double whammy.

When the government interferes in the credit markets in the interest of social engineering, we all take a hit. Many of the “homeowners” who got relief are still having trouble making their payments and will eventually lose their homes. And, with foreclosures on their records, most of them will never be able to qualify for a mortgage loan in the future.

Most of our politicians are lawyers who have never taken a course in accounting, economics or finance. They don’t know what they are doing – other than buying votes for themselves. They steal our money to buy our votes.

We should vote them all out in future elections.

Foreclosures to Rise As 'Liar Loans' Sour

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