Are these the people they want to bail out?

[Ultrarunner]

In reading some of these posts it almost seems like some are advocating an IQ test to prequalify home buyers... those banks are just to smart and underhanded and take advantage of people too dumb to know better.

In the 70's and 80's the overwhelming complaint regarding lenders was Red Lining and denying minorities access to Home Loans... Over and over the mantra was to just give people a chance.

The last few years, more people than ever have been given a chance...

Is the consensus here that many people are too stupid to weigh risk and then make a decision?

Borrowers have more protection today then ever before in History. We have more State and Federal Agencies, Truth and Lending Disclosures, Anti-Discrimination Laws, etc... and yet, we as a country are still looking for someone to blame.

Unless, someone held a gun to your head... no one can force anyone to sign Loan Docs. I have had very bad experiences with Mortgage Brokers and I simply walked out of the closing and said to Hell with You. Every Department of Real Estate Standard form has a loan contingency clause... all the buyer has to do is check the box...

My immigrant neighbors that bought 3 years ago were only able to qualify for a "No Doc" loan because they had insufficient employment history in this country. Jesus' told me recently that he could have never have dreamed that he would someday own his own home. Is it hard... yes. He and his wife both work and his oldest son contributes. Jesus's mother lives with them and takes care of the younger children...

[southernnaturelover]

Originally Posted by desertsun41

Keep in mind if there is no bail out then you personally, your family, all your best friends and all your neighbors will share the burdon of having the house next door to you abandaned and falling down. Not to mention the homeless taking up shelter in it. We dont want that do we? Think of the lost value of YOUR own home. So some help some how is needed. Swallow the "no bail out help" for just a moment and think of the consequenses if those people are not bailed out.

If my neighbors were the type of people to destroy their house like the ones in that video, I would rather the house sit empty than have them living next to me. If they would do somehing like that, who knows what else they might do.

[HappyTexan]

The mindset is.."If I can't have it then nobody else can either".