Sunday, February 5, 2012

Homeowners

In so many cases, homeowners were pressed by unsolicited bankers to re-mortgage with a couple of years of fixed rate, then an increasingly inflatable balloon rate after that, with signings of about
30 pages of legalese, and a promise of nearly guaranteed opportunity to re-mortgage again if the
balloon rate proved to be too big. Most homeowners could not foresee the bank got any advantage
from putting them in a mortgage they would not later modify, but then foreclose.
As a matter of fact, why have these banks done that?

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