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The lenders did not only give them the loan knowing full well they couldnt afford it, but often encouraged people who couldnt afford certain houses to buy them anyway.
Real Estate agents and loan officers had their part in this mess.
Thanks for the history lesson. I still put most of the blame squarely on the greedy buyers. Someone can 'encourage' me to jump off a cliff, but it's my own fault if I do it.
Thanks for the history lesson. I still put most of the blame squarely on the greedy buyers. Someone can 'encourage' me to jump off a cliff, but it's my own fault if I do it.
I'm with you Stan. I put most of the blame on them. Randomdude does have a point though. At one point the lenders knew they were lending money to people that wouldn't pay it back, they didn't care though because they were going to sell the loans.
As far as Real estate agents pushing people to buy? Come on now. Thats their job, the more people who buy the more they make. They are a sales person just like any other sales person they want you to buy and will cheat, lie, and steal to get you to buy one. People can still make up their own minds though. Imagine how stupid you would look if you bought a home you couldn't afford and blamed it on the agent? Ha
Of course many of the lenders were unscrupulous. But that doesn't absolve the person who finally signed on the dotted line. They wanted something they knew they had no business getting...
These people who make the bad choices have screwed up our economy through the housing market and its getting so bad its effecting the people who play by the rules.
Ive been completely priced out of the local market of an area that has no business being so expensive.
Of course many of the lenders were unscrupulous. But that doesn't absolve the person who finally signed on the dotted line. They wanted something they knew they had no business getting...
Again, I agree 100% with you. It was majority greed from buyers who shouldn't have been buying.
Thanks for the history lesson. I still put most of the blame squarely on the greedy buyers. Someone can 'encourage' me to jump off a cliff, but it's my own fault if I do it.
I agree, and most of the blame does go to the buyers, they signed their name. However, Realtors (R) and mortgage officers are trusted as experts in their fields, and many people who are not so intellegent or aware trusted them to lead them in the right direction, and they didnt.
To me, thats kind of like a drivers ed teacher telling a naive student that making a left hand turn on red is ok.
You know when push comes to shove, no one put a gun to these people's head to buy. In this life you make the decisions, and then you have to live with them. I don't care how much of a loan they give you, you know how much you can afford each month. Instant gratification does have its' prices and people are learning that the hard way. It seems like the new American way is to blaim everyone,but yourself, for your own STUPIDITY! You can't cry foul to the banks and the realotors when you are the one that signed on the dotted line. Unless the realotor is using water boarding to get you to sign, it's all on you.
I agree, and most of the blame does go to the buyers, they signed their name. However, Realtors (R) and mortgage officers are trusted as experts in their fields, and many people who are not so intellegent or aware trusted them to lead them in the right direction, and they didnt.
To me, thats kind of like a drivers ed teacher telling a naive student that making a left hand turn on red is ok.
Ohh...so they were 'just following orders.'
I totally see what you mean, dude, but a naive 16 year old kid faced with someone who has authority and is in a position to teach is not the same thing as a grown adult who should be able to do the freakin' math and figure out someone is trying to scam him.
If what people are trying to say is that the american public is too stupid to see through these schemes, we have bigger problems. I think their greed blinded them.
I totally see what you mean, dude, but a naive 16 year old kid faced with someone who has authority and is in a position to teach is not the same thing as a grown adult who should be able to do the freakin' math and figure out someone is trying to scam him.
If what people are trying to say is that the american public is too stupid to see through these schemes, we have bigger problems. I think their greed blinded them.
Actually, almost 40% of the US has the literacy level of an elementary school student. This is according to the World Almanac 2009.
So, to be precise, many people sitting in houses CANT do the math, and probably can hardly read or comprehend the contract they are signing.
They completely depend on others to lead them that they perceive as more knowledgeable, much like the 16 year old kid and the driving instructor.
Yeah, at the end of the day, its their fault for signing, but at the the same time, they probably truely have no clue what they are doing financially, and had Realtors (R) and mortgage brokers barking at them about how they could afford it.
The problem is not big house per se, its that they obviously cannot afford the house. We are suppose to feel story for a family of 4 that can't afford their 7-bedroom/5-bath house as if having to downsize and "lose" their home would be akin to homelessness! Its like feeling sorry for someone because they can't keep their Porsche and have to be committed to a life of driving a Honda.
I have a relative that moved from California to the Atlanta area and purchased a huge house with cash. Technically they could afford it, they paid cash. But they are broke now, they used all their money for the monster house. Of course its not always the case, but people are driven to these sorts of houses because of status. My relative was living in a smallish place in California and their stupid purchase seemed to be driven by status, they refused to even consider a small house.
I can't believe we as a nation have to teach the basics of personal finance to mature adults who should have known better than to live beyond their means. What we have here is a failure to use common sense.
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