With all the talk of a potential government bailout for the current situation with the increase in foreclosures and short sales, I have some concerns.
First off I will say that I have true compassion for those who have had their incomes drop due to the current economic situation, and are trying to provide a home for their families. I feel for those who were coerced into "getting in over their heads" and sold ridiculous loans by lending institutions. Also I regret that some in the real estate and mortgage industries took advantage of lax regulations and the public's ignorance of those industries.
Some of my thoughts:
If I personally am looking at homes and could get a 5.5 - 6.0 % 30-year fixed conventional mortgage, but I had to go with an interest only / adjustable product to afford the payment, I AM SHOPPING FOR SOMETHING I CANNOT AFFORD!!
If I am buying a home to live in and I am planning on relocating in two or three years - I SHOULD BE CONSIDERING RENTING.
If I hear a lender's representative say "just refi in 2-3 years before the rate adjusts" I AM GAMBLING.
The four main causes of this current crisis, in a nutshell:
1. Lack of regulation and oversight in the mortgage industry
2. Greediness
3. Peoples' desire to jump on the (real estate) Bandwagon
4. Ignorance
Your thoughts?
Hi Keith,
You are right. The "don't bring money" furniture ads are a prime example. Buy a bunch of new furniture and start paying for it after 2+ years. When has been used and your puppy has chewed a hole in it is the ideal time to start your payments on your purchase.
I say pay as you go as much as physically possible.
Ron,
You said it on personal responsibility. "Caution, Coffee is hot!" is simple proof that personal responsibility is all but dead in this country.
My four causes are in no particular order.
-Mark