In article ,
"Irish Mike" wrote:

"KC" wrote in message
...
On Sep 23, 3:20 pm, "HeyBub" wrote:

You're right the problem was caused by the federal government,
specifically
the mandate to make PC morgtages. That is, people got morgtages who would
never, in an honest world, have qualified for them.

Those are referred to as NINJA loans - No Income, No Job, no Assets.

KC

I had never heard the term "NINJA loans" before but it certainly fits. Now
the people who bought the houses they couldn't afford with loans they never
read, have a couple of options. The banks will lower their principle, or
lower their mortgage interest rate, or lower both. Or, if they don't like
those options, they just say "****-it" and walk away from the whole mess.
Not to worry, those suckers who worked, saved and rented and then bought a
house they could actually afford, will be glad to pick up the tab.

Irish Mike

In this state, one can walk away from a "purchase-money" loan without
fear of reprisal. Only drawback is a giant stain on your credit.

OTOH, many of the people who are now in trouble are those who refinanced
when times were headier. A refi is not a purchase-money loan, and the
lender can chase your other assets to the ends of the earth to satisfy
the debt.

Crossposting beyond ahr deleted.