Homeowners are mostly an uneducated, gullible, reckless lot. They don't understand economics. What's Wall Street's excuse? They *chose* to tie themselves to this boat anchor...
What about all the financial gurus that preached for years that renting was just "throwing your money away" and you need to get into a house as soon as possible? I'd like to see more outrage against these "experts."
by loosening lending standards and letting people buy multiple houses - the banks allowed their money to cause a bidding war - which allowed them to lend 3 times as much money on the same fricken house. Not to mention the collusion with the builders to have people overpay for new homes in shitty places. They never should have lent those amounts. finally - many homeowners is the west did not promise to pay back the money they borrowed. The promised to pay back the loan OR accept a foreclosure on their non recourse loan. Now there are many seconds who are not getting paid and not foreclosing (because they are so sold out it does not make sense to foreclose.) In the old days (ten years ago) seconds in CA charged a lot more for their loans. maybe 4-5 full interest rate points. they were also did a lot of due dligence because they knew they might not get paid if the market rolled over. You tell me who the scum was - the borrower or the wall street banker who knew it was giving away free money and paying mortgage brokers 5% to do it. But was willing to do it because in the short run his firm would pay out billions in bouneses and then leave tax payer with the bill. Do you realize that you could say all of wall street has been a scam for the last decade.
The amazing thing is that if you ask any liberals who's fault it was they will say it was the evil banks and corporations and Bush than the actual people getting the loans they can't pay. The lack of judgment is disgusting in the democratic party. Ever heard of self dependence??? They woriship JFK but do not portray any his beliefs about people actually helping themseleves.
Technically still true assuming you don't overpay or even if you slightly overpay. Bottom line is, if you can't afford to make the payments with at least 10% down and a traditional mortgage, you shouldn't have bought it in the first place.
1) They should outlaw the no recourse loan 2) You bought it , you own it. If you aren't ready to impoverish yourself to make the payments, don't buy it. 3) 30% down, and thats if you have a good credit rating, other wise 50% 4) Lowlife are not entitled to homes or anything else for that matter. If you are lowlife and don't like it, get better. 5) Learn how to save. It's easy. Stop eating out a ripoff restaurants, buying $100 jeans and sneakers. Tell those rugrats you're raising to stop begging for the latest $60 video game every week. I could go on but why bother
30-50% down is a little extreme. There are plenty of people who put 3% down and pay PITI who could easily afford their mortgage. Without the idiotic spending at ripoff restaurants, $100 jeans and sneakers, our economy would turn into Japan's. The markets would become much less volatile, and you as a trader wouldn't make nearly as much. Let the dumbasses spend their money on stupid shit. I'll be on the other end taking their money.
Yeah, I know thats the argument, that all the idiots overpaying for everything and over consuming, driving vulgar SUV's, etc, is really a GOOD thing. Somehow I don't buy it.