http://finance.yahoo.com/news/financial-pro-lost-house-191003606.html

Here's what I see .. the bank loaned him 100% of the money for the home. His thought, like many others was “Wow. I guess if they’re willing to lend it to us it must be O.K.” I know, bad decision on his part, but encouraged by the bank none-the-less.

The bank made interest on that loan from 2003 thru 2009. I'll let Jazzmammal tell me how much that would be. When the guy realized he couldn't afford it the bank then got the home sale for 531k. Who lost in this deal?
Honestly asking. The guy lost a lot, everything he gave the bank for 7 years on a half million loan. I'm sure the bank lost some on the second mortgage (200k) but he must had that equity paid in already to get the second loan.. it gets complicated for a simple guy like me.
The bank then repackaged and sold it of course (crashing markets and any investments the guy had), but we won't even worry about that part for now.

Last edited by rharv; 11/12/11 06:31 AM.

Make your sound your own!
.. I do not work here, but the benefits are still awesome