Need Info on Buda Subdivisions off 1626

[oldtoiletsmkgdflrpots]

[quote=austin-steve;13203996
I'm talking about people who go to the mall and charge up more in purchases than they can afford, then drive it all home to a house they shouldn't have been allowed to buy.
Steve[/quote]



All I'll say and then I'll shut the hell up is this. I have a problem with people saying who should or should not be "allowed" to purchase a home, let alone go to the mall and shop.

To me they are judgment calls. In my opinion we cannot possible know someone's circumstance unless WE KNOW the people very, very personally.



Ok, I promise...I am now going to STHU on this subject.

[austin-steve]

Originally Posted by oldtoiletsmkgdflrpots

... I have a problem with people saying who should or should not be "allowed" to purchase a home

Then start your own lending service with your own money. You'll develop an opinion about who is allowed/qualified to borrow money real fast, I promise.

To me they are judgment calls. In my opinion we cannot possible know someone's circumstance unless WE KNOW the people very, very personally.

Actually, the American consumer is well known, as a group. We know ourselves very well.

1) We want more than we can afford.
2) We want it now.

We don't like saving or struggling to earn what we gain but would rather "have now", pay later. I'm just saying that the above two points do not benefit the individuals who succumb to those desires. And the resulting defaults and financial mess do mot benefit society. And I'm saying the 100%, zero down loans do not "help" people in the long term.

So I'm not sure who you are rooting for here or what you want. I want people to be responsible with their money and their purchase decisions so they can live happy lives. We all pay the price when people want more than they can afford and when home ownership becomes a government policy-driven entitlement subsidized by the 10% of Americans who provide 70% of the tax revenue.

Steve

[XLadylawX]

Originally Posted by verybadgnome

I pay off my credit card balance every month. How am I part of the problem?

Our banks loaned too much money so all those outstanding loans (both good like yours, and bad like others) total up to a scary balance sheet for the bank.

When banks consider making loans to new customers, like businesses and people who want to buy homes, they look at their balance sheets and try to decide if they have enough cash on hand income from their other debtors and thus enough money to loan out.

In the olden days, there were more people like you so they could risk making new loans to others. Now they have to be especially careful. They have to worry about ALL their customers and hope for the best. You are part of that pool of borrowers so you play a part.

By the way, congratulations on paying off your credit card balances each month. I would also hope that you have at least 6 months worth of income saved so that if you lose your job or whatever your source of income, you will not become one of those dreaded liabilities on the banks books. In the meantime, the banks because they have been burned so badly by their own policies AND the irresponsibility of their clients, will have to factor this in when deciding to make new loans to others.

[staubach]

When I moved to Buda, the lending company offered to loan up to twice the cost of my house (800k instead of 400K) if I wanted to look at another location.

Isn't that what caused this entire financial mess in the first place??

[Tim_Barton]

Originally Posted by austin-steve

I think it's pretty black and white that helping people who can't afford to buy a home to buy one anyway generally produces a poor outcome for the neighborhood and the community.

People who get in with zero down and stretched ratios certainly don't have a budget for landscaping improvements or upkeep, and that serves neither them or their neighbors.

I think the old school threshold of a minimum 5% downpayment at least weeded out people who were unable to save 5%.

Steve

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This above is SO very TRUE!!!!!!!!!