They bought houses that they could not realistically afford
I'd argue it's not that simple. Some of those people could have afforded those houses if there mortgage stayed at a low fixed rate. It's when their mortgage rate jumped that they had to default. A lot of the blame has to be on greedy loan officers who pushed people to agree to shitty mortgage terms without adequately explaining how bad shit can go for them when the rates rise.
Reformed_Asshole63 karma
I'd argue it's not that simple. Some of those people could have afforded those houses if there mortgage stayed at a low fixed rate. It's when their mortgage rate jumped that they had to default. A lot of the blame has to be on greedy loan officers who pushed people to agree to shitty mortgage terms without adequately explaining how bad shit can go for them when the rates rise.
View HistoryShare Link