I went back and read a story from 3/2007. It was about a strawberry picker in California who was making $14,000 per year but was able to qualify for 100% financing on a $720,000 home. No, that's no typo, $720,000 home with no money down making $14,000 per year! The guy defaulted on the loan a year and a half later. How did he last that long? He says he didn't speak english and didn't understand the terms. Come on. You make less than $300 per week and you didn't realize you can't afford a 3/4 of a million dollar home because you don't speak english. Is it too late to find a lender to loan this guy more money so I can sell him the Brooklyn bridge? Sorry if I sound a little harsh but this senerio mutiplyed thousand and thousand of times created the bubble and now the mess the market is currently in. Many people simple can not afford the home they are in and trying to figure out how to keep them in there homes is the wrong way to go. Do we really want to find a way to keep people who earn $14,000 per year in $750,0000 homes! I am not only blaming the borrower here. The borrower and lender are both at fault. I wonder where the guy is who approved the strawberry pickers $750,000 in the first place. I hope the only job the loan officer can now find is as a strawberry picker.
http://hollisterfreelance.com/news/contentview.asp?c=213141
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