posted on Aug, 23 2007 @ 08:12 PM
Several of you have already echoed my sentiments; but I feel compelled to echo those sentiments myself. As I have stated in the past, our predatory
lending schemes will come back to haunt us, and they are. It's no different than credit cards. For certain, we should yell at the credit card
companies for giving out credit cards like candy. But, the individual should bear the responsibility. As an adult, one should be capable of saying,
"You know, I like this credit card; but given my income, I won't really be able to make more than the minimum payment. Thus, I really shouldn't
max it out."
The same goes for home buyers. If you can't afford to put 10%-20% down and pay closing costs, you shouldn't get the house in the first place. Who
wants to owe 120% of your home's value the day you sign your mortgage? To do that in a speculative market is plain stupid. You're seeing what
happens now in markets like SW Florida and southern California.
So no, I don't think the government (translation, the taxpayers) should bail out home buyers. I also don't think the government (translation, the
taxpayers) should bail out the lenders. The lenders should liquidate the properties and suffer the subsequent financial losses of selling the
foreclosed homes at auction.
Greed has a way of coming back to bite you in the a--.
And for those who say I have no heart, let me tell you a little story. Back in 2001, I went into heavy debt to finance an online business. We
were doing well up until 9/11/01. After that I was forced to shut down and pay the piper. I suffered the credit consequences and it showed when I
got my first house with my wife. My rate was 3% higher than everyone else's at the time. I refinanced my 2 year ARM and now I'm only 1% higher
than everyone else. I also own 40% of my house, and that EXCLUDES market appreciation. We did our time, paid down debt, recovered and got a house
that fit our means to pay. We didn't buy a $300,000 house just because Wells Fargo said we could.
Greed will kill America.
And Marg, you can ask your potential lender if they sell mortgage notes. Some, like Wells Fargo, do not. Had they done so we would not have gone