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djnemo65 · 09-30-2008, 09:56 PM

By law in most states an independent lawyer is required to be present during the closing process. It is their job to make sure the borrower understands the terms of the loan, as well as to alert them if they feel the borrower is being swindled in any way. This is not true in all states but in most. So, while it's easy to blame the lenders for this mess, the public was eager to buy in. They wanted big screens and new cars; as their homes swelled in value they viewed that as free money to finance a lifestyle they couldn't otherwise afford. This was fine as long as houses were appreciating at 20 percent per year, and many wanted to believe it would go on forever, but it didn't. While it's politically expedient to absolve the public of all blame in this, the fact is that people largely did understand the terms of their loans. They wanted the cash. They gambled on the US housing market expanding forever and were wrong. So did Wall Street, and that is why we are where we are.

09-30-2008, 09:56 PM	#63
djnemo65 Playmaker Join Date: May 2004 Posts: 2,836	Re: $700 B Bailout By law in most states an independent lawyer is required to be present during the closing process. It is their job to make sure the borrower understands the terms of the loan, as well as to alert them if they feel the borrower is being swindled in any way. This is not true in all states but in most. So, while it's easy to blame the lenders for this mess, the public was eager to buy in. They wanted big screens and new cars; as their homes swelled in value they viewed that as free money to finance a lifestyle they couldn't otherwise afford. This was fine as long as houses were appreciating at 20 percent per year, and many wanted to believe it would go on forever, but it didn't. While it's politically expedient to absolve the public of all blame in this, the fact is that people largely did understand the terms of their loans. They wanted the cash. They gambled on the US housing market expanding forever and were wrong. So did Wall Street, and that is why we are where we are.