In response to an Activerain post this morning, here was my response. Note - the blogger was wondering if the lenders were being greedy by not working with longtime borrowers to ease the burden of their "alligator" mortgage:
Is it Greed? No. It is an economic rule that businesses fail. Little ones, and big ones. Their overall intent was not to rip people off, it was to be profitable.
However, times (and economies) change. The lenders have made billions of dollars of bad loans, and continue to do so. They are destined to fail. The real estate market continues to deleverage, the asset values continue to decline, and the burden of debt continues to rise.
The American taxpayer is about to get a very large tax bill, and they will pay it - till they can't.
Here is the question - what are you doing NOW to protect yourself? At my office, we are continuing to help as many people out of their no win mortgages as possible.
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