There is a lot that I'm sure I'm missing, and by all means, please let me know. But with all the scares, the news, the hype and fear, where did the responsibility of the homeowners go? I'm sure there are exceptions but ultimately didn't the homeowner agree to buy there home at the terms given by the mortgage professional?
Did they not know how much there monthly payments would be and how much they could comfortably afford?
I'm not trying to defend these government backed loans or irresponsible lending institutions but if people were more responsible they wouldn't purchase a $300,000 home which was at the top of there qualification, rather they would buy a home for $225k or 250k, lowering there monthly payments. Wouldn't responsible consumers make for a stronger economy? Once again, there are always exceptions but how many foreclosures are due to consumer's lack of budgeting, buying more than they can afford, use of credit when they can not afford to pay it back, buying vehicles they don't need, eating out every night, etc.
Maybe now, when times got rough, more homeowners would have some breathing room and not as many would be facing hard times.
;)
;)
Jose-You are right on! It is also people here who kept using their homes as ATM machines during our boom. In fact, I know many people who stopped working and lived off of their refi money. Now they want to walk away from their home because it dropped in value! Hmmm, you got a Hummer in your driveway that you paid for with a HELOC and now you want to know why the bank wants you to pay part of what you owe back? Something is wrong with that picture!