I came across this exchange of views from two people with lots of experience of the sub-prime mortgage scam and thought I would re – post it here as it so neatly describes the everyday reality of the nasty behaviour the banks have been getting up to with their criminally wicked greed.
You might have noticed the news right now is all about just about every country in the World going through financial hell as they are all overwhelmed by debt which has been engineered by the banks.
Hundreds of millions of people all over the World are suffering financial hardship as their governments struggle with out of control run away financial chaos caused by the idiot banks with their greedy, dishonest and fraudulent behaviour.
It was the bank’s creation of their cunning sub-prime mortgage scams that triggered the Global financial meltdown from which the whole Worldwide economy is now suffering.
Read on :
Here is the message that has just been posted:
—Quote (Originally by newstarter)—
Hi to the caggers on this thread.I have been following this discussion for a short time,however i feel i have to side with supersleuth, Actionsnotwords, and co and heres why.
Whilst i cannot use the legal jargon you caggers use, when i read about sub prime lenders using every trick in the book to generate false arrears on borrowers accounts, using repossession as a first not last resort, i have to think there must be a reason why.
Don’t forget people, this is about borrowers. For example getting an eviction notice for say next Wednesday for sometimes less than 1k of arrears with another 2 k added on in charges,lenders must be doing this to actively repossess their homes. what other reason could there be for doing it.?
Sorry to bring this debate down to my level, but its about real people, wondering whether they are going to have a roof over their heads or not.
I have been in that position, a sub prime lender screwing me for every penny and more, then still try to repossess, i won in court but so many others have lost their homes because of ignorance of the banking system,together with the legal system. Somethings been going off and if i can see it why not everyone else. Well done Supersleuth and co,i shall read on with intrest.
Supersleuth then said :
You’ve got it in one.
Repossession is far more profitable than lending to the customer for 25 years. That’s why they force people into arrears.
Firstly they charge interest at rates they know is untenable for the borrower to sustain. They know how to force the borrower into arrears because they know exactly the fixed income that the borrower declared on their application.
Secondly, they know that once they’ve tripped the borrower up on its first missed payment – from there they can add all the extortionate fees that are really profitable. If you manage to re-mortgage, then they can stuff you for an Early Redemption Charge in the tens of thousands. So it’s good business for them to force you into “alleged” arrears.
But then the next mortgage company will soon have you in the same boat a few years down the line anyway, plus they’ve also screw you for all the extensive costs in remortgaging as well. Maximised profits. Why should they lend for 25 years? It’s much more profitable to force you into arrears.
If you haven’t been able to remortgage, the next profit centre is just as lucrative – taking your home. Then they can steal all the equity from your home. And, even after taking all your equity, there’s more. Fees, fees and more fees for the sale of your property and then they get to have you in their clutches for the contrived “shortfall”, all of which attracts compound interest.
So then they leave you alone for a few years while you financially recover and then, once you recover, they miraculously appear. With their compounded interest on the alleged shortfall over say 6 or 12 years and they get to hound you for another small fortune. Read the many threads on this topic regarding repossessions that took place in the 1990’s.
Oh boy, it’s soooo much more profitable to repossess than it is to let the borrower have the loan for 25 years. You will never be allowed to get out of their clutches even after they’ve taken everything you’ve got. Until our blind, deaf and dumb moron judges understand the abuse and frauds perpetrated on the back of their “rights” over a mortgaged person, Bankruptcy or Death is the only way out.
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