Toxic Mortgages Were Like Crack Cocaine...
Living larger than one's efforts and abilities appeared so easy back then when the loan programs were plenty.
Now they are all gone and the harsh consequences of this addiction has to be faced with reality.
Like this illegal drug, toxic mortgages offered an amazing opportunity for rapid equity for millions of homeowners in the USA.
It was addictive...
Buy a house, any house and the high was money in the form of an equity or a refi that gave them instant cash..
This drug gives instant satisfaction and immediate gratification to the user.
The mortgage gave instant satisfaction to the home buyer...
never even dreamed of having such a home before and the gratification came months later when they were refinancing.
Buying it, its easy at first, your ability to make your first buy it is aided by the pusher because he knows you will be coming back for more.
The loan's incentive was the low initial rates...
the mortgage company knew you were going to refi later...
and later and later.
It was crazy to believe the party would continue forever...
Crack cocaine high offers the illusion of power, mastery and euphoric control.
A Toxic Mortgage high gave homeowners the illusion of buying power, illusion of home-ownership and immediate gratification by moving to a new big suburban house.
Bankers, as drug dealers pushing these types of loans were rewarded by the Government with bailouts if they made a promise never to do it again, but their victims (homeowners) were left with the consequences.
The road of recovery for a drug addict and the owner of this type of mortgage: Read More: