I don't care who it comes from: I personally think that SOME (not neccesarily 10%) quantity ought to come from some place: Friends and family tend to put a bit more responsibility on the back of the borrower than their signature on a bank loan anyway.The Countrywide chairman said it is "meaningless" to require targeted borrowers to come to the closing table with as much as 10 percent of the purchase price in cash, especially since much of money comes from a relative or some other third party.
FINE! It causes the borrower to reach out and either be personally responsible OR have connections/obligation to someone they theoretically have a desire to continue the association with!"It's often not their money anyway, yet we put them through this torture," Mozilo said.
AHH you mean the realtors and other persons fees which often get lumped into the transaction 'market value'A downpayment "doesn't help the integrity of the loan at all," he added, explaining that troubled borrowers are often forced into foreclosure because it costs more to sell their places than they will lose in equity by handing the keys back to their lenders.