Last night I got a call from a nice young man who is a manager at a fast food rest. 10.50 and hour and his mortgage payment is 1660.00 a month. He is married and his wife makes the same. He applied alone to a Lender, recommended from a friend at Church. ( My brothers keeper) Come to find out the home was bought last year for 60k, flipped and sold to him for 140k and appraised at 160k. Go figure. By the way the house is in Detroit.
Back in the day, we had to save for a down payment, qualify for the payments and have satisfactory credit. Why is it that Investors allowed people to purchase homes with no money, no job and bad credit. Did they not see the train wreck coming?
Now a days when I qualify a newbie they do not want to hear the truth. They find a lender that will accommodate their "WANTS", and then eventually they will commit financial suicide. I get a call once a week for help. What are we to say? Let me get my magic wand and everything will be okay. Ha....It is exhausting.
My heart hurts for those people who bought homes they could not afford, were not educated them to the cost of homeownership, and most of all selling a bill of goods that was not worth it in the first place. What are your thoughts?