Livermore Homes Blog

It’s just so easy to throw blame around about everything we don’t like.  I’ve blogged about noise from new highways, but I wonder about how much blame we should be dumping on sub prime borrowers, who find themselves in deep doo-doo.  Both Joan and I have college degrees including an MBA and extra courses for my Broker’s license, but after examining the cable plans from Comcast, DishTV and DirectTV, we both have brain freeze.  I was considering explaining what their various options are but since they change every few months and they all offer non-comparible mombo-jubo services, I’m not going there except to say ahhhhhhhhhhhhh.  So  our confusion about cable plans led me to think about sub-prime mortgages.  Recently I was watching a show about the lending crisis, where the speaker gave this example of the difficulty of understanding loans.  He asked a group of financial experts, who had an adjustable rate loan?   Half the room raised their hands.  He then asked ,who knew when the rate was set to change.  Half of the first group raised their hand and then he asked, who knows by how much they would go up and  only one or two hands went up.  So this was a group, who study financial issues, have advance degrees and most don’t know the basics about their current home loans.  So how much do the  borrowers, who fall into the sub-prime category, understand about their loans?  This is a group in general that haven’t had the best of credit for whatever reason, but still wanted to provide a nice home for their family.  They got bombarded by lenders who offered loans that these folks could get regardless of their financial situation, which were then sold to Wall Street investors, who thought they got a quality product.  Not so.  This mess is based on greed.  to br continued…