La Jolla Real Estate,
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University City and
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real estate, homes and condos for sale in California - Ruth Mills & the Mills Team, REALTOR.
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This is a sad and difficult situation for buyers and the high risk lenders. This is usually the result of
home buyers getting 100% loans even though they cannot afford it. Once the short term low interest rate adjusts to a higher rate the buyers cannot make their payments. Many of these high risk buyers are choosing to walk away from their homes and let the bank foreclose on them.
It is frustrating to watch these high risk lenders continue to give high risk loans to people who cannot afford the payments then the lender gets a large loan origination fee before selling the loan to another loan company.
I just read a report the other day saying the media is talking about all the foreclosures but in reality it is only 1% of the home loans and 80% of those loans are fraudulent loans that should not have been given to the buyers.
I hope this will force the loan industry to set new guide lines and restrictions to prevent high risk lenders from giving buyers loans they cannot afford.
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