I am very concerned about our current economic crisis. It is difficult for me to articulate my feelings and discuss politics, economy and worldly issues. I have always been intimidated and fear not saying what I mean. But, I am pissed and want to say something.
I am watching the Today Show and something said struck a nerve. The question was..."why should the American that pays his Mortgage, debts and has not fallen into the credit mess, have to bail out his neighbor that LIED on his mortgage application and taken an advantage of the system?"
As a Realtor for the past 8 years, I can tell you first handed that I have seen this coming. Not because of people lying on applications but because of Lending Predators and misguidance. Dozens & dozens of times I have gone on Market Analysis and found that a homeowner owed more than the home value.
I have even been in a situation where when refinancing after an adjustable rate matured, the lender tried to get me to refinanced at 125%. Why would I do that? Well, if I didn't know better, this lender was pretty convincing. I can see where someone would, thinking that they could pay off loans, and recap on the interest of the home loan. Then sell the home later at the new higher value that the lender assures you it will be worth.
I had to take a break from the real estate profession. I am so depressed from it . Particularly the past couple of years.
I know of 10 families that have had to go into foreclosure or bankruptcy (or both) in the past couple of years. I know of 4 others that are on the brink of going into it. These are well respected people that for various reasons, fell into this tangled mess. These are well educated people that never saw it coming. It only takes one tiny error or hiccup that one did not calculate.
So, before you go putting down or blaming the neighbor, remember: unless you have walked in their shoes, you have no idea what how and why they are in that situation.
I don't have the answers. I just pray that we get better leadership and we work together to build this country back up.
Subscribe to:
Post Comments (Atom)
4 comments:
Scary times. You articulated it well.
Ditto to Sheri but all are to blame!
I was pushed to pick a zero interest only loan when I bought this place in 2005. I asked WHY when I had plenty to put down and wanted the boiler plate mortgage.
My realator said--"This is the rage and of course-- I could put you into any home you wish on Geist if you wanted"
He was in the process of buying just a modest home on the eastside and did just that-- interest only banking on home values going up. I need to call him and see how he feels now. He did not need to do this but just got caught up in the craze-- he was a realator and not a lender so what was in this for him to even suggest this?
They are now all paying the piper-- I feel the same anger at the lenders for strong-arm tactics but the buyers should know better.
IF YOU CANNOT AFORD IT ON YOUR CURRENT INCOME-- DON'T DO IT!!!!
These buyers were/are stupid and now are paying the price. Why could they not see this was going to implode on them and put them in dire straits?
I feel the bailout is a necessary evil to stop the bleeding but feel pissed just the same. Where is the help for every other tax payer caught up in thier own minature breakdown.
History shows these buyouts do pull the economy out of these situations and in many cases with a profit-- see Sweden and Japan as most recent cases. But--- in a free market economy-- benefits and risks must stand for themselves. These mega companies must be held accountable--- that is what capitalism is all about.
Sorry for the soapbox whine but you hit a nerve.
Thanks for the forum Jan.
Rich
This is a well thought out post and provides food for thought. I will say when we bought our home many years ago, we knew up front what we realistically could afford - not much - and that's what we settled with. We bought an inexpensive, smaller home and love it. We have a small mortgage (only $400 monthly not including the taxes and homeowners). Many people wouldn't settle for a smaller home - I know because my friends have said that and commented to that effect when we were buying our home. But living within one's means simply makes sense. We have a fixed 30 year interest rate of only 5% - part of the benefit of buying in a rural area, where rural development loans were available.
Post a Comment