The Two Sides of Real Estate Foreclosure - Forex

The drama that is present in real estate foreclosures has two sides of the story: the individuals who stand firm in the principle of bail out and the individuals who have the opposite perspective. If you were able to buy a property at a time when the real estate business was doing well and now, you have to face a rate mortgage that is adjustable and some lowering prices for real estate, then you would most likely be in the bail out side. However, there are some individuals who blame the buyer more than the lenders for the drama that is unfolding now in the industry of real estate foreclosures. These people believe that if only borrowers didn?t stretch their limits and bought a lot of houses without considering their financial status in the future, then they might have avoided a foreclosure. Like all debates, the two sides might both be the truth.

What is the Lender?s Fault in All This?

Real estate foreclosure was probably impacted by the easy credit standards and many unethical lenders that did not bother to substantiate the income or ability to repay for borrowers. Instead, they opted to sell them loans they knew they couldn?t afford because the commission structure for mortgage brokers paid them upfront, not after the person was in the home. In that sense, many people were told one thing and were not told exactly how the adjustable rate mortgages worked clearly. In areas where prices were rising daily, the key to get in before being priced out of the market made people less willing to question the loan approval or terms. It was only after the prices dropped due to overwhelming real estate foreclosure problems that the same borrowers were caught holding the bag on bad loans.

Sign and Take Fully Responsibility

A borrower is required to sign a contract by hook or by crook. Thus, one is expected to hold responsibility since his/her name can be found in that agreement. However, most borrowers are resistant to real estate foreclosure loans since one way or another, they know that it won?t do them any good in the coming years. All you need to have is common sense for you to be able to have this conclusion but those people who don?t want to face the results of their wrong choices would most probably take mortgages and their jobs for granted. Lastly, for individuals who were not able to experience foreclosure, the loan would be given to them in dollar tax. That?s the reason why these people think that it?s unfair for them to receive the punishment which should be intended for other people. They want to see equality in the eyes of the law.

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Source: http://thefxreport.com/2012/03/12/the-two-sides-of-real-estate-foreclosure/

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