Quote:
Originally Posted by weatherboi
Most people in this country who are under water or are in foreclosure are so because of criminally over inflated market values, predatory mortgages and unethical credit card companies. All mostly directed by banks, mortgage companies, and their regulators. People were given the illusion that they were living within their means by people throwing misinformation in their faces about the state of our lands market values. I bought my house at peak market value in foreclosure. It is now worth less than that foreclosure price. That is under water and a bad investment on the banks part...not mine. I love my house but if I am overpaying for it what is the point??? The market may never bounce back to what it was. Many other fiscally responsible people have chosen to walk away because of this and I think about it too.
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This is absolutely true for a lot of people. I also wonder though about where we draw the line on believing the banks and credit card companies.
Every time I've gone to the bank for pre-approval on a mortgage, they've approved me for about double the amount that I personally felt comfortable paying and knew I could afford.
Is that their responsibility or mine?
Maybe what we need is to have more heavily regulated truth in lending, and more education about personal finances and money management in the schools. Just thinking aloud here....not really having an answer.
I understand the feeling of "screw this, I'm never going to get even on this mortgage" and the urge to walk away on the part of people who bought at the peak of the market. But what about those (like this house's previous owners) who bought low, refinanced like mad to play, and then walked away?
For me, those are two very different scenarios.
ETA: Grant, I totally agree with one thing you mentioned and then forgot to include it
In my opinion, the
biggest speculators in this real estate disaster were the banks. They made loans that were absolutely ridiculously inflated, and fed the real estate bubble all along. They, of all people, should have known better....and been saner...in both the amounts they loaned on property, and on the types of loans they made.