Most consumers who purchased homes or condos from sub-prime lenders knew the time would come when interest-only payments would end and that the actual montly mortgage payment to which they agreed, would be due. The truth is that 95%+ of the people that took out the loans and now have problems knew the risks. And they took those risks in order to live the American dream.
For future reference, the following tips could serve as a checklist:
1. Only bank with reputable conservative companies;
2. If it seems too good to be true, it is;
3. Always ask about the worst case scenario. If you cannot afford it now, don’t do it; and
4. Never assume that things won’t go bad.
