Afford VS somebody who lives within their means and is not assisted by tax dollar bailouts?Why does the government reward irresponsible behavior when it comes to people who buy homes that they can't ?
Its not, but the liberals think its ok.Why does the government reward irresponsible behavior when it comes to people who buy homes that they can't ?
People who purchased home when the housing economy was at its highest were not irresponsible. At the time of the signing, they were perfectly able to afford the homes they purchased. It was the interest change that jacked them up that doubled and sometimes tripled the monthly mortgage amount. They may have made a bad decision by buying when the housing market was so high, but that doesnt mean they dont deserve any help now.
Because greedy lenders and realtors convince people they can afford more than they can... 6 years ago when my husband and I purchased our home, we had a budget of $150-$175k. We told our realtor and our lender that we would not purchase a home over the $175k price. We had saved $35k for a down payment. Based on our financial information, our lendor approved us for a loan of $275k - WAY over what we wanted to spend. They began to hound us telling us that we could absolutely afford a higher priced home. Our realtor then began showing us homes in that price range - to show us what we could buy - and continued to explain to us why and how we could afford it. My husband and I are cheap, even though we were only in our early 20's at that time, we just had no interest in spending such an amount of money and putting ourselves into debt. While looking for homes, we went to an open house that our realtor suggested. I felt horrible for most of the other young couples there. The home was $250k and absolutely gorgeous. A dream home for any couple in the midwest. Most of the couples there were telling the realtors that they just knew there was no way they could afford that home. But, the realtor who was showing the home and her preferred lender sat right there and wrote out all these numbers for these young, naive and wishful thinking couples to prove to them they COULD afford it. One guy who was being told about an ARM loan said ';But what if the rates go up and I can't afford it then?'; The answer from both the realtor and lender ';Oh, you won't even have to worry about that! By the time that happens, you'll be advanced in your career and probably making twice the amount you are now! In fact, you'll probably end up selling this home and buying an even bigger one!'; And thus begins the downward spiral for this poor guy who probably fell for it, lost his house and any equity he thought he was going to get out of it.
We bought our home for $165k and this past year my husband lost his job and the only way I was able to retain my position was to relocate as my company closed our local office. We had to sell our home 6 months ago and it was only appraised at $125k because of the market drop. We could not afford to pay two mortgages or a mortgage and rent, so we had to sell the home at a loss. We are now paying the bank for the difference of our old home and cannot get a loan for a new mortgage (nor can we now afford to do so with only one income) and are currently renting an apartment while the same banks that caused this mess are getting bailed out and multimillionaires are getting bonuses.
Many of the people losing their homes are middle-class Americans - people who save responsibly and buy wisely.
Do you have $150,000 in the bank to pay of a house if you decide to buy?
ask barney frank and chris dodd.these 2 assholes are responsible for the meltdown.
Subscribe to:
Post Comments
(Atom)
No comments:
Post a Comment