Reuters News: Bush unveils plan to stem wave of fo...
I found the story linked above disturbing, more so than the “wave of foreclosures” it alludes to. People are supposed to count the cost and weigh the risks along with their ability to repay when they get a home loan. Legions of buyers did not do that. In fact, they bought into loans that only required a small payment (sometimes as low as $400/month on a 400K home!) with the agreement that the payment would balloon out after a given period (usually 5 years).
They knew what they were getting into and did it anyway. They should suffer the natural consequences of rushing in where they had no business. Even more important to consider are the legions who DIDN’T buy during the “boom” as these folks did. They either weren’t approved or they wisely decided to not buy into these risky loans What benefit will they be receiving for being wise? Answer: NADA.
They get to go on renting while the government bails out the hasty, mismanaged homeowners now facing forclosure. And while we’re on it, who is government to help people in bad loans? Last I checked our government was multiple trillions in debt. Who’s gonna bail them/us out when they come to repossess our country? My wife and I still rent. I’m 38 and she’s 30. We figure when she starts her career after college our income will give us better long term options to buy. I hate to hear that so many are getting aid for being irresponsible. It’s kind of like when you find out someone with no job got a higher tax return that you did.
It happens.
Related posts
