Lawsuits Against Lenders Accelerate Amid U.S. Housing Crisis

By Nick Carey | May 27, 2008

  • May 27, 2008 at 10:36 am
    Gill Fin says:
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    I thought it was all Bush and Cheneys fault? Didnt they actually complete and submit fraudulant loan paperwork themselves?

  • May 27, 2008 at 1:34 am
    Who'd a thunk it? says:
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    I heard just the other day that the fal of the Roman Empire was Bush’s fault too.

  • May 27, 2008 at 1:37 am
    Terrie says:
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    Honestly, I think the Lenders ought to be sued. Their greed and negligence led to this crisis. They tempted and lured people hwo otherwise would not be able to buy a home, into buying a home with a lousy loan and allowing them to lie about their income. this caused low income people to get $500K homes and then foreclose once the rates went up… putting innocent peoples equity in jeopardy.

    I bought a home in good faith that it was a good solid investment. And I am very angry that the banks went and did what they did, and it feels like they walked in a ripped me off. The lenders bad decisions cost me a lot of money. They had to know this was going to happen, baby boomers predicted it.

  • May 27, 2008 at 2:23 am
    Baxtor says:
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    The sad thing about this is we’ll all have to pay. If mortgage companies lose, they will need to increase their mortgage rates to compensate. Both parties are at fault. The home purchaser because they should have realized making minimum wage you cannot buy a $500,000 home. The mortgage companies because not everyone is good at math and they should have disclosed information in plain english. I had a mortage company call me just like in this article. They said the same thing, we can cut your interest rate and save you BIG money. I told them my rate and they said they could beat it. Then I told them the length of the loan and that I did NOT want an interest only loan. They said they could beat it. They came back with longer loan terms, interest only loans, etc… Everything I told them NO on. I even told them to not even call me if they couldn’t beat my current loan. They lied and lied. The individual later said, no they couldn’t beat my current loan strait up. Yet they wasted my time. I’m not saying all mortgage companies did this, but the one that called me was all over it. But I asked the right questions, because if it sounds to good to be true…………

  • May 27, 2008 at 2:23 am
    lastbat says:
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    I think the lenders were predatory, but people need to be responsible for their own finances. They need to know when they can afford something and when they can’t and they need to learn about finances before they make major purchases. I bought my first house at 22 and have never even been late with a payment, let alone missed one, in over six years. If a young kid can figure this stuff out other people can too.

    And Gill, I heard Bush and Cheney also caused the ice age by ignoring global cooling that all the scientists at the time were screaming about.

  • May 27, 2008 at 2:27 am
    Liberal says:
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    I think the government should buy everyone a house and pay off this mortgage mess. The CEO’s deserve big bonuses and with all this mess, they are not going to get them this year. I feel bad because they were getting millions in bonuses when the housing boom was going on. I also feel bad for the home owner because everyone deserves a house and should not have to work anymore. And get free health care too. But of course I want the government to stay out of my life. “Did I say this right?”

  • May 27, 2008 at 2:47 am
    Freedom for all the slaves says:
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    Liberal,

    You’re right. How many people are there who aren’t willing to take a gun, point it at their neighbor (or anyone else) to get money for a car, a house, health care, a pension, etc. but will gladly allow the government to steal the money for them?

    Again, someone please explain this for me: “normal people” don’t have the right to point a gun at people and take money from them, yet they give this right, which they don’t have in the first place, to “governments?” ( a group of individual men & women who do business with guns). Is this an alternate universe we’re in where it’s possible to give away something you don’t have?

  • May 27, 2008 at 4:06 am
    Been There... Done that says:
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    I bought my first home at the age of 22. I have owned a home ever since. I have been self employed since 1999, and I have seen times that I couldn’t pay my bills. I have been in foreclosure and worked my way out of it. Did I sue anyone for lending me too much money? NO! Did I file bankruptcy? NO! Did I work hard and negotiate with my creditors and work my way out of it? Yes, and I paid extra to do it. Am I the fool here for living up to my obligations? Oh well, my conciense will never bother me! To me, that’s all that matters! Karma will catch up with those who cheat just to avoid keeping their promises.

  • May 27, 2008 at 6:21 am
    You can sleep at night says:
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    Good for you Been There. I sure hope those lenders also sue the “victims” for sitting across the desk smiling back at the loan officer knowing they couldn’t/wouldn’t pay it back but didn’t giv a rip anyway!

  • May 29, 2008 at 1:03 am
    MORTGAGE EDUCATION says:
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    I JUST WENT WITH MY 24 YR OLD SON AS HE SETTLED ON HIS 1ST HOME YESTERDAY. NO WONDER PEOPLE RUN INTO PROBLEMS WITH THE LENDERS, THE ATTORNEY JUST KEEPS PUTTING PAPERS IN FRONT OF YOU & SAYS “SIGN HERE” -”OH THESE ARE YOUR LOAN TERMS, YOU ALREADY SAW THEM IN YOUR DISCLOSURE” THEN ONTO THE NEXT DOCUMENT. MY SON TOOK HIS TIME & REVIEWED EACH DOCUMENT & SO DID I. AS A 1ST TIME HOME BUYER IN DELAWARE, HE PAID A FEE & WENT THROUGH A PRETTY THOROUGH HOME BUYING EDUCATION PROGRAM. EVERY 1ST TIME BUYER SHOULD BE REQURIED TO DO THIS + THERE SHOULD BE AN EDUCATION PROGRAM FOR REFINANING & ALL HOME BUYERS IF THEY HAVE NOT TAKEN THE CLASS WITHIN 5 YRS.

  • March 15, 2009 at 12:21 pm
    Dixie West says:
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    I live in orange county california and have been abused by both bank and a morage broker I would like to speak to a attorney in my area and get into this class action law suit .



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