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Except it isn't that cut and dry....these loans were being presented in a way that were perceived to be affordable. Did many not do their homework? Sure. Was the process so convoluted that some people really didn't have the capacity to break down terms? Yes.
I know, that's what lawyers are for. I'm still not going to fault somebody who just wants to get a house, work their 40 and pay their bills.
Did you think that every unfit buyer simply said "Hey, I can't afford it...but F it... I will live it up for 3 years and get foreclosed"??
Did you think that these people simply went into their homes and just didn't pay their house notes upon moving in?
In the illusion of the American Dream, buying a house is an END for many. Believe it or not, most of these people just wanted to buy a house and settle into their niche.
There is nothing convoluted about a home loan. You just have to actually read the paperwork. I think that most unfit buyers ignored the fine print, didn't research what a jumbo loan was, didn't calculate monthly payments, and bought the house simply because they didn't want to be the only person in their social circle to not have the large house. Those people could have easily bought a house. Just buy the $150,000 home, not the $300,000 one. I believe that the vast majority did not bother to calculate what they could afford before setting foot in a real estate office, and that is no one's fault but their own.
If I buy a 55 inch flat screen TV from Best Buy for $3,000 when I don't have cash in my bank account, whose fault is it, Best Buy's or mine?
Last week, online lender CashNetUSA said 22% of the 1,000 people it recently surveyed had less than $100 in savings to cover an emergency, while 46% had less than $800. After paying debts and taking care of housing, car and child care-related expenses, the respondents said there just isn't enough money left over for saving more
If you are paying for childcare, own or rent a home and have cars you have significant income.
That's a lot different from the comment I referred to where they said that most of the people were spending on unnecessary purchases.
Do some, absolutely.
But I see more people trying to eek by.
There is nothing convoluted about a home loan. You just have to actually read the paperwork. I think that most unfit buyers ignored the fine print, didn't research what a jumbo loan was, didn't calculate monthly payments, and bought the house simply because they didn't want to be the only person in their social circle to not have the large house. Those people could have easily bought a house. Just buy the $150,000 home, not the $300,000 one. I believe that the vast majority did not bother to calculate what they could afford before setting foot in a real estate office, and that is no one's fault but their own.
If I buy a 55 inch flat screen TV from Best Buy for $3,000 when I don't have cash in my bank account, whose fault is it, Best Buy's or mine?
Again, you are oversimplifying it. Buying a TV and buying a home are not on equal footing....especially the subprime shakedown.
How do you know who was buying what house and what size house they were buying?
I know a few people who personally were foreclosed on and not one of them tried to go into anything too extravagant. People I know very well personally and would never think that they bit off more than they could chew. Not saying these people don't exist...but it's not fair to make umbrella statements like that.
it's also not even about people who couldn't make the payments...what about the person who bought the house for 300,000 and woke up the next day and their house market value was 1/2 of that and they are stuck in an upside down mortgage?
Would you want a mortgage, being slammed with 4-5 points, if it's value took a nosedive like that? Maybe you would eat it but for the person who CAN make those payments but by the skin of their teeth....it's a bitter pill to swallow.
I think you have the cause and effect mixed up. Tuition rates go up, and then student loan amounts have to go up accordingly.
I am sure you are of the type that if someone is working at Walmart, you would say that's their fault for not bettering themselves, they should go and get an education, so are you against student loans or something?
You have it mixed up. Tuition goes up because they hand out loans to everyone. If they reduced the number of loans available, less people would be using them and tuition would fall because, otherwise, colleges wouldn't get enough enrollment.
Basically, if less people were able to get loans then they wouldn't be able to go to college, and then colleges would have to lower tuition to get these people to still come, or else they would not have enough students.
If the other guys were doing such a great job, why didn't they hold the House and Senate?
You are in the mong cycle. R and D are both doing a bad job. Instead of identifying that and supporting someone OTHER than an R or D, you just say "well, D is slightly less worse than R at least".
"Even more disappointing; The savings rates have barely changed over the past three years, even though a larger percentage of consumers report an increase in job security, a higher net worth and an overall better financial situation."
Is it possible that with all the safety nets available, there is no need to fear something not going to plan?
And what is the Congress and the president concerning themselves with? The immigration bill is actually supposed to increase unemployment and lower wages, so that is not going to help us. I'm about done with both political parties, I don't hear anyone looking out for the welfare of the people, and trying to move us out of this terrible economy.
[quote=fordlover;30185582]"Even more disappointing; The savings rates have barely changed over the past three years, even though a larger percentage of consumers report an increase in job security, a higher net worth and an overall better financial situation."
Why aren't Americans saving more?
Is it possible that with all the safety nets available, there is no need to fear something not going to plan?[/quote]
??? WTF is "all the safety nets available" to childless adults? And I bet childless adults are living paychec-to-pycheck because they probably have most of the low-wage jobs and they have a low home ownership rate.
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