The minute my wife and I walked in we knew the home was for us. It was perfect! There was plenty of room for our new baby, a huge back yard, a fantastic kitchen and tons of charm. This was just right. But there was a giant problem.
We didn’t have nearly enough money for a down payment and we already had a mortgage on our condo we were renting out and taking a loss on.
Our mortgage broker said our credit was outstanding and we could get a 100 percent loan, not a problem. I remember thinking, this guy is nuts! This is not supposed to be this easy, and can I really afford it?
We got caught up in the moment and bought the house.
This is the scenario that was played out over and over again all around the country. People getting into loans they probably shouldn’t have qualified for.
We were lucky: one year after we bought our house, I took a job out of state and we sold our home for a small profit.
But a few years later, the bottom fell out of the market and the values plummeted. People are now stuck with those crazy 100 percent loans or adjustable rate mortgages (ARMS) that now have them paying out the nose on a loan they shouldn’t have been able to sign in the first place.
Why were banks handing out money so easily? How were all these loans getting approved? Tonight, on AC360, we’ll tell you the story about the man who had originated a great many of these loans, and why he is one of the culprits of the collapse.
Anderson Cooper goes beyond the headlines to tell stories from many points of view, so you can make up your own mind about the news. Tune in weeknights at 8 and 10 ET on CNN.
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