This video from ABC News demonstrates the extent of the mess the housing market is in. Everyone is suffering but to a certain degree everyone has brought it on themselves. From loose credit standards to people living outside their means to predatory real estate agents inflating house prices. As much as I hope government fixes the problem I wonder if it's not just a self correcting mechanism built into the system. I obviously have no economic background but like everyone else I have my opinions and one of those is people need to take accountability and quit living outside your means. I have a great deal of sympathy for the first woman that lost her job and has no electricity. I have to wonder though how she could afford that house on a $40,000 dollar a year salary. Granted, it's hard to tell just how nice and big the place was in the dark. I know from looking for houses the past six months that we can't afford much more than a shotgun shack on what we make.
Then there's the case of the woman that bought a house for $39,000 and refinanced and borrowed against it until she owed over $130,000. How did that happen? Why did people let her do it and more importantly why did she let herself do it?
I normally don't like to kick someone when they're down but this is one time when I can feel sanctimonious. I've resisted taking advantage of the "equity value" of my house and the rental properties we own and I think that's what's helping. I've also been fortunate enough to keep my job while so many people I know are losing theirs. I won't pretend that I'm some financial genius, we don't have nearly enough money saved for an emergency and we have more debt then I would like. Lisa and I are always marvelling at how people that make less than we do can afford the things they have and I guess I know the answer. I would love to have a new motorcycle and Lisa would love to have a new truck but we're just thankful to have an income right now.
I know this is a more complicated then my simple mind can appreciate or maybe it's as simple as it seems and people are making it complicated, whatever the case, I wish it wasn't necessary for people to lose their homes to correct whatever is the problem.
4 comments:
I believe the correct term is predatory lender not predatory real estate agents.
I think it would be both wouldn't it. I remember Shawger trying to pull some shady stuff, but I thought you were telling me that McClendon used to help people get inflated appraisals for homes too.
Your not all crooks.
No....there are actual predatory lending laws geered towards predatory lenders. McClendons are lenders. Thanks for outing me to the McCelndons by the way.
I'm flattered that you think the McClendons read my blog.
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