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Originally Posted by FSETH
Home ownership includes many risks and expenses. Values are just one aspect. With home ownership comes many costs and question marks such as insurance (flood, hazard, fire, etc.), maintenance costs, interest, taxes, and appreciation or depreciation.
Nobody is forcing anyone to blindly buy property, use their homes equity as an ATM machine, buy more house than they can afford, or get ARM mortgages. The people who choose to do these things are really the ones to blame.
Just curious, but how can you expect a bank to eat the costs if there is a decline in your homes value, but not have any cut of future profits?
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The bank sells the loan (hence the sub-prime crisis on Wallstreet). It isn't as if the bank just holds on to it an hope the interest they collect is enough  They single handedly overstate the value of their portfolio to make money...which is fine, but then don't turn to the government when the costs don't go the way you expected.
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