Posted on 09/22/2006 8:47:25 PM PDT by churchillbuff
The premise is false.
Do you spend a lot of time searching for articles to trash America with?
A growing number of families like the Philbrooks are paying a high price to ditch unscrupulous financing and hold on to their homes. Others are walking away with nothing as the real-estate market slides locally.
Of course, it's the fault of "unscrupulous financing," not "punchdrunk borrowers" or "careless fools."
America is a free-market economy that functions on supply and demand. It's not "trashing" America to be interested in how particular markets are faring at the moment. That's what this article is about. It's also a cautionary warning against taking out risky loans. It's not "trashing" America to offer that warning - I think Greenspan offered just such a warning at one point, and it amounts to common sense.
I borrowed too much and I don't make any money... It must be somebody else's fault.
Yeah, that's it. They enticed me!
Fools and their money are soon parted!
I'm not talking about America and her ills.
I'm talking about the fact that you virtually never post anything positive about this country; in fact, quite the opposite.
;-)
They opted for an interest-only, adjustable-rate mortgage
first mistake.
I agree with you about the accusatory title: It blames lenders for borrowers' mistakes. Creative lending can be a great thing for people who calculate their capacity to pay if the rates go up. If people don't crunch the numbers, that's their mistake. In fact, the article itself makes it pretty clear that the borrowers took a risk, apparently without thinking it through enough.
They could buy a $60k home in fly-over country. California dreamin'
"In the Philbrooks' case, John and Karen borrowed almost the entirety of the $244,000 cost of their modest North Highlands home: One loan was written for $195,000 at 6.375-percent interest; another financed the remainder of nearly $45,000 at 9.125 percent. The rate on the small loan was fixed. But on the large loan, the rate was fixed for only two years, and after that it was variable"
There will be a TRILLION dollars in keys mailed back to the mortgage companies. And the fed will bail many out.
The bottom line is many people live beyond their means. Period.
LOL!
B U M P! They are probably toast. I say this with no animus. The borrowers were sucked in.
Did they review the "fine print"(i.e., the terms of the agreement)of the contracts with their attorney?
If not, why not?
I wouldn't rent a movie without understanding the small print of the contract...much less finance a house!
Unfortunately, in California, for many people, it's almost impossible to own a house without "living beyond their means." The state has become a place that's very unfriendly to the middle class. Socialism does that. Socialist places tend to be nice places to live - for the rich and the poor, but not for the middle class.
Fact is, these folks did not check out the deals and read the fine print.
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