BoA OWNED by person

[derf]

Originally Posted by 101lifts2

This is true to an extent, but please rent the movie Inside Job to better understand the whole mess. It was more profitable to write subprime loans than conventional 30 yr loans because the interest rates were higher over the long term and yielded more profit when they were sold off. I believe many people were duped by loan officers for the sole purpose that banks did not care if the homeowner could pay after the fixed rate period. They packaged up these loans and sold them as CDOs to investors.

you just described me. my loan guy sold me on the adjustable rate, even though I was pre approved for almost 50k more than I paid. His argument was that it was cheaper for me on a monthly basis especially since most likely I would sell the house withing 5 years and make a profit. At the time it sounded right because it was at the time a rarity for people to loose money on a property. Since then my mortgage has been sold 5 times, and I cant get a conventional loan because the house is worth half what it was when I bought it the month before the housing market went kaput.