Seriously - I would take drastic measures, take some pretty undignified jobs if I had to etc. etc. before I'd let that crazy $hit happen to my house. What the hell? Didn't people realize that somebody was going to have to pay? Now we see the repercussions were huge. What kind of person would let this happen and how do they sleep at night knowing what a loser they've been?!
2007-08-21 17:16:35 · 8 answers · asked by Mishy 1 in Business & Finance ➔ Renting & Real Estate
Well that's what I mean - I mean really - how could people have thought that they could buy a beautiful house that was at least $200 or $300K without a single cent of a downpayment etc.? I agree that the lenders are partly to blame but I think the borrowers are guilty too. I guess it's greed...
2007-08-21 17:28:43 · update #1
As an appraiser I must state that during the height of the market many people outright overpaid for their property. That is a huge reason and also the adjustable rate mortgages and option arm loans. If your payment went up a few percentage points and you couldn't pay or sell then you are stuck.
2007-08-21 17:44:55 · answer #1 · answered by tianaramal 4 · 1⤊ 0⤋
So many people want a house and want more than they can afford. Salespeople are great about talking people into more than they can afford too. Then the bad things happen, children get sick, cars need repairs, the house needs major repairs, taxes and insurance go up drastically and on and on. Money gets shorter and shorter, the arguments over money start and there is nothing left to have any type of good time. At some point, they give up and lose. It doesn't make people losers, it just means they made mistakes and that's ok as long as you learn from the experience. There is a lot to know when you purchase property--loans, repairs, insurance. . .it's the biggest purchase that most people make in their lives and yet they step into it totally uninformed. It can be a very expensive lesson.
2007-08-21 17:35:30 · answer #2 · answered by towanda 7 · 2⤊ 0⤋
You should not be so quick to judge. Many people were basically tricked into arm loans and all kinds of inventive loans other than conventional to make a sale. These loans rates change, go up of course and families can no longer afford. I think it was the lenders fault for giving risky creditors loans that were too high for peoples income to afford. Haven't you been reading the papers? These people may have been foolish in thinking they could afford it later but the lenders are going bankrupt for the foolish way they gave everyone loans left and right too.
2007-08-21 17:25:56 · answer #3 · answered by Elena 2 · 2⤊ 0⤋
Some people purchase a home then years later lose their job to no fault of their own, or something terrible happens to one of their spouse, children, etc. you have to think of all the things that can go wrong in a family you dont call someone who has made their payments every month a loser just because something happens in their life they have no control over.
2007-08-21 17:46:50 · answer #4 · answered by Anonymous · 2⤊ 0⤋
A lot of people got themselves into adjustable loans and took a gamble that rates would not increase as fast and that property values would continue to go up.
now that it is time to refi, there isn't any equity and the home is upside down and there mortgage payment is going up fast.
The bank takes a huge risk too. this is not the first or the last time. Everybody was too busy enjoying the party to beleive it would happen again.
2007-08-21 17:37:40 · answer #5 · answered by JB 1 · 0⤊ 1⤋
in all fairness..the lenders are just as much to blame by letting many first home buyers qualify when they really shouldn't have. Many of them went and got interest only mortgages which are only good for so many years before you have to start making regular payments and when that time came there payments were much higher then anticipated.
A home buyer should always get a traditional mortgage.
2007-08-21 17:27:25 · answer #6 · answered by C C 3 · 2⤊ 0⤋
Predatory lending is confusing, and is taking advantage of too many hard working people. Do drastic measures = illegal activity? Many folks, work around the clock to barely make ends meet. There should be more regulations in place.
2007-08-21 17:36:04 · answer #7 · answered by Anonymous · 1⤊ 0⤋
it happened to my niece --- she's a good person but it wasn't her fault -- her boyfriend walked out on her and left her with 3 kids and a mortgage --- she ended up defaulting and losing the house ---
2007-08-21 17:24:47 · answer #8 · answered by Anonymous · 2⤊ 1⤋