12-07-2012, 12:31 PM #11
I don't know how the logic works, but this is just like every other liberal agenda. Blame someone else. Obama fails to fulfill campaign promises, blame Bush. People are losing their homes, blame the bank. The deficit keeps going up, blame the rich. The concept of taking responsibility is not a well accepted or often seen thing on the left.
12-07-2012, 12:37 PM #12
Duane, the loan part I can see someone thinking they will be making enough to handle the payments and getting in over their heads. though it is not good financial sense i can see it happening, but don't know why the banks get the blame.
the thing that really gets me is, some of these same people turn around and don't pay mortgage and wait till a court order makes them move and think it is logical to do so. obviously they lack financial logic in the first place for taking a loan.
i have owned two homes and getting ready to buy our third, I base what I can afford by what we make now, not the future.Jay Shrewsbury
12-07-2012, 12:53 PM #13
12-07-2012, 12:59 PM #14
My point...if you were about to pay $225,000 with an interest rate of 12.5% on a home with an assessed value of $175,000, would you do it? I am guessing no. That is exactly what these people did. They overpaid and signed off on high-interest loans with no thought of how they would deal with it if the market collapsed or if they lost their jobs. They are a victim of themselves.
When my wife and I decided to buy a home we looked at home prices versus home values. We realized that we could build a much better home than we could buy for the same money. Instead of paying $250k for a 15 year old 1800 square foot home on a small 1/5th acre lot we bought 1.5 acres of land, built the foundation, installed septic and a well and built the house (all via contractors). Now we have a 3000+ square foot home on a large parcel of land that has an assessed value of 154% of what we owe. I am not saying that I am smarter than anyone else, but it takes a little logic and forethought to make good choices. Doing things just because "I want to" with no concern for the consequences is what gets people into bad mortgages and bankruptcy court.
12-07-2012, 01:06 PM #15
12-07-2012, 01:08 PM #16
I looked at what mortgage I qualified, cut 1/3 from that and that was my purchase price. The bank's job is to keep me in debt forever. Whatever number they tell me I can handle, I can probably really handle 2/3 of that.
Of course, my wife works for the bank so my interest rate is wicked low.
12-07-2012, 01:13 PM #17
12-07-2012, 01:29 PM #18
How about blaming Obama for not making a deal while they themselves are guilty of the exact same thing?
This isn't a liberal or conservative thing. It's a political thing. No politician can allow himself to be at fault. If he does, he mist leave. That's the problem.
But I guess it is easier to blame someone else than realize the reality...