When a person annual income is 20k or so and he is qualified to buy a $500 home! I don't see that person suffering back then when he made the purchase. Its all about greed and America and its money making machine that went south. I don't feel sorry for any of these people since they know what they were getting into.
2007-08-30 07:58:02 · 8 answers · asked by Mark 4 in Business & Finance ➔ Renting & Real Estate
that is a $500K
2007-08-30 07:58:55 · update #1
I love_: I agree with you. What happened with people just wanting a rooftop over there head, a place they can call home. But the fact is, people got greedy and yes you can blame brokers and mortgage scams, but still its the responsibility of the buyer to do his/her homework and see if they can really afford what they are buying. Most people thought home equity will sky rocket and they will be able to make fast money. Well, its a risk people took and they are paying for it now. I have two friends that bought homes two years ago and called me me crazy for saying this is a bubble and they should not buy at this time. Why don't you a guess where they are now?
2007-08-30 08:26:47 · update #2
Leo: Who is going to help these people, you and I and the rest of the taxpayers?
2007-08-30 09:39:14 · update #3
I'm appalled at the questions in this section. People are ignorant about the home buying process - they don't read the fine print - and we ALL know that's where the important stuff is. They take out long term loans and pay interest only because they can't afford the house any other way. They let smooth talking brokers talk them into making bad decisions, then when the consequences start coming up, they want to sue instead of realizing they're the ones who made the mistake back then and are just paying the consequences now.
It's a HOUSE people! You shouldn't take it lightly when you buy one! Get the inspection, find an attorney or real estate agent who will take the time to explain everything to you. It's a HUGE investment, you should know what you're getting yourself into!!
2007-08-30 08:18:02 · answer #1 · answered by Roland'sMommy 6 · 1⤊ 0⤋
When a home is foreclosed, it's a bad deal for both sides, but the reality is that both sides took a risk and made an investment. Foreclosure rarely (not "never") happens when there's significant equity in the home. More often than not, the buyer owes more than it would sell for, so the fact is they aren't losing anything in foreclosure; they already lost it before it got that far. The banks usually lose something, but the potential for loss is why they charge interest in the first place. It was a risk.
Now, the real question is, who REALLY loses in a foreclosure?
The CEO of the foreclosing lender loses. Too many foreclosures eat into the profits that their half-million dollar bonuses are based on. I suspect that a lot of them are going to have to get by on a quarter million this year.
If that's not human suffering, I don't know what is.
2007-08-30 08:10:54 · answer #2 · answered by open4one 7 · 0⤊ 0⤋
the typical seller anticipates that the home they bought with no money down, all seller paid closing costs, and a 4.75% 3-year ARM in mid 2005 will now sell for approximately 70 - 85% above what they paid for it. It should be inherently obvious, even to the most casual observer, that this person is suffering from americandreamatosis, which is the unreasonable assumption that profits naturally follow from an investment level that is near or equal to zero. These people are in dire need of help,
2007-08-30 09:32:09 · answer #3 · answered by Leo F 4 · 0⤊ 0⤋
I was raised to live within my means and work harder if I wanted to increase those means. It seems like a lot of others were raised to grab what you can and expect the tax payers to pay your bills if you over spent.
Anyone in a situation of their choosing is not "suffering". Most foreclosures these days are with people who put themselves into that situation. I do not feel sorry for them at all and am buying as much of the property as I can. I am just afraid the interest rate will raise before I own the amount of real estate I want. I am carrying so many mortgages that I am only allowed to have one in escrow at a time.
2007-08-30 09:18:23 · answer #4 · answered by Landlord 7 · 3⤊ 0⤋
I live in the USA. People buying over their income is all too common in this country. I think alot of it is more or less competitive where people try to out-buy each other to have the biggest, fanciest house or the fanciest car. What do they end up doing...working 2 jobs (including married couples) in order to pay for said fancy house and/or car but still living paycheck to paycheck because they are sooo deep in debt. A few months or years later and BAM...foreclosure or bankruptcy. I don't feel sorry for these people. They played the game and they have to live with the consequences. btw...I don't call it "human suffering". I call it "human stupidity".
2007-08-30 08:31:14 · answer #5 · answered by Who Me? 2 · 1⤊ 0⤋
People got greedy on both sides. Lenders extending credit to people that had no hope of affording the home and buyers that took the salesmanship pitch hook, line and sinker.
I don't know who to be mad at, the lenders for duping people or the dupes that got sucked in.
2007-08-30 08:47:25 · answer #6 · answered by godged 7 · 1⤊ 0⤋
Bad lenders telling them it's ok. Ignorant buyers/investors. They need to research their choices. Why are so many people so dumb sometimes?
2007-08-30 08:08:42 · answer #7 · answered by Casie 4 · 1⤊ 0⤋
id like to make 20 K a year....WOW......
2007-08-30 08:07:16 · answer #8 · answered by curvy_chick000 4 · 0⤊ 0⤋