I just read an interesting on-line article about the FBI's investigation of the subprime mortgage industry. I have included a link, in case you are interested:
What was most compelling was to read through the article and then to read the article comments. The bulk of the comments were about trying to determine who is to 'blame' in the whole situation.
There are a lot of people who made a lot of money with the sub-prime products. There are a lot of people who will suffer a great deal of damage trying to recover from their bad financial decisions to use these products--uninformed or deliberate. But it does leave me wondering why no one has spoken about the fact that there are actually some valid cases where a subprime mortgage product and an informed party can be a good combination? A risky loan made to a consumer who understands the loan product, and is willing to live with the terms, fills an economic need.
I am not advocating that we should return to the use of subprime loans to avoid dotting our 'i's and crossing our 't's , but I would like to see a little bit more information about the statistics of the subprime mortgages that HAVE NOT become foreclosures or short sales.
Any thoughts? Any experiences you would like to share? This is all part of my New Years Resolution to try to be positive in the face of the media negativity!
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