Liar Loans

The_White_Horse

are they wrong? If someone has to lie to get it, and can service it with no problem is there not something wrong with the process rather than the loanee?

if i put everyone in a line and start asking if the people if their name is "bob" and every time i get the answer "no" i shoot them, when the people cotton on and say "yes" and survive, are they simply adapting or are they filthy liars?

wherediditallgothen

The_White_Horse wrote: »

are they wrong? If someone has to lie to get it, and can service it with no problem is there not something wrong with the process rather than the loanee?
QUOTE]

But then you get the people who lie to get it and then can't service it.

The_White_Horse

wherediditallgothen wrote: »

The_White_Horse wrote: »

are they wrong? If someone has to lie to get it, and can service it with no problem is there not something wrong with the process rather than the loanee?
QUOTE]

But then you get the people who lie to get it and then can't service it.

they are the idiots.

its all about personal circumstance and freedom in my book.

if you lie and can pay it back - good. if you lie and can't, face the consequences.

but if i earn 50k a year, get a legitimate loan and then lose my job, I am in no better position really than if i lied and had a bigger loan.

Blacklight

It's just another red herring banded about by people who think >3.5x income lending and second home owners ruined their life.

If you want a loan, have a loan. Money should be lent on the basis of ability to pay it back, not how much you earn today for a 25 year long loan. It's irrelevant, in a few years you will be earning much more.

chucky

Blacklight wrote: »

It's just another red herring banded about by people who think >3.5x income lending and second home owners ruined their life.

If you want a loan, have a loan. Money should be lent on the basis of ability to pay it back, not how much you earn today for a 25 year long loan. It's irrelevant, in a few years you will be earning much more.

i read on here that 85% of mortgages were Liar Loans

The_White_Horse

chucky wrote: »

i read on here that 85% of mortgages were Liar Loans

if 85% of people have to lie to get a loan, shows the process is garbage.

madnessofBruno

I have no problems with Liar loans.
One condition printed in bold at the top of any contract.

If you mess up no bail out from the taxpayer.

chucky

The_White_Horse wrote: »

if 85% of people have to lie to get a loan, shows the process is garbage.

good point White Horse - if it was a joint application it would be two people so it could be double the 85% total

Californication

whether or not one agrees with the process by which lenders lend, it's their money and their choice. if you misrepresent the conditions under which you wish to borrow then you are defrauding them. the lenders have the right to choose the criteria they apply.

--C

dave4545454

chucky wrote: »

i read on here that 85% of mortgages were Liar Loans

mine certainly was. i had to lie and pretend i had a job to get the mortgage but still managed to pay it all back and get mortgage free many many years before the end of the original mortgage life.

nearlynew

The problem is "liar loans" were used to bid up the price of property (with the full blessing of the regulators) until they were way out of kilter with earnings.
While honest people were punished.

It was all part of the bullsh1t economy of the past decade which gave the illusion that people were wealthier than they were and allowed them to borrow spend beyond their means.

But as we all know.......... debt is not wealth.