after she was convinced by a mortgage broker to sign up for a $370,000 investment loan with subprime lender Liberty Financial five years ago
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(...)
Quote:
She watched in horror as Liberty began charging her default interest at the ultra-high rate of 16 per cent, as well as expired account fees and legal costs. When she received her loan statement last month, Ms Smith discovered the amount she owed had ballooned to more than $1 million
that's what happens when you start dealing with loan sharks. you're better off eating your own poop rather than even talking to a loan shark. those people are all the same, and pride themselves for destroying others. sad for ms Smith. However, that could help the middle class who can't afford a first home at the moment.
They've gone from 2-3 calls per week to 8 calls per week. However will they handle the volume?
I think perhaps what they're getting at is if the percentage increase this business is experiencing is similar to others in the industry then a tripling of distressed sub prime for a city is probably very significant.
history repeats. they have told us about the mechanisms of the subprime mortgage crisis in the US times and times again. It has been such a lucrative business for all the crooks on wall street, that i don't see why noone would repeat the scheme anywhere else, esp. in Australia where the market is well deregulated. with houses being less and less affordable, it is obvious a similar subprime mortgage crisis could be coming here in Aus too.
history repeats. they have told us about the mechanisms of the subprime mortgage crisis in the US times and times again. It has been such a lucrative business for all the crooks on wall street, that i don't see why noone would repeat the scheme anywhere else, esp. in Australia where the market is well deregulated. with houses being less and less affordable, it is obvious a similar subprime mortgage crisis could be coming here in Aus too.
Actually there are bugger all 'sub-prime' mortgages in Australia. Even before the GFC Australia's mortgage market had less than 5% lo-doc or no-doc loans, and since then they've all but disappeared. Fortunately for Australia, this isn't a realistic threat.
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