beachlover, don’t fret I won’t bash you because you and many other readers fear entering the ring and because you didn’t ask some question that could be answered in the primer I will extend some courtesy.
About once a month we have someone come in and express their disdain for our callous reaction to the financial ruin of others. I think you will find the majority of the regulars are charitible individuals who also care about their fellow man. That said, you cannot possibly take the side of the overextended buyers. For every uneducated, unsophisticated buyer that had no idea what they were doing I will find you twenty that were greedy, lived beyond their means and even told others to do the same. You didn’t and now you need to sell your house and buy a larger one. It doesn’t matter if you get less for your home, you will pay less for the next one, therefore you are immune to the market moves. Even better, you will have a lower tax basis on the new one so you actually win. Your desire to have pity on people who are being foreclosed on is flawed and biased, you benefitted from the greed of others, raising your value, even at today’s prices if you sell you are ripping off some victim who buys from you, they should pay half what you think your house is worth. You are stealing their kids college money. This isn’t an attack on you, you didn’t plan it and it’s not your fault, but you are doing it. From your perspective you can find victims but there are many more victims that aren’t getting any media attention or sympathy from you. Those young families or college graduate couples who see that they will never be able to afford their own home, who weeps for them. Well, I do. I supervise many of them, who went to school, played by the rules and work very hard. At every point in history someone in their situation and point in their career could afford a home and even raise a family on their income, except for now. I root for them, they aren’t greedy and most of them refused to forgo food in order to own a home. Some have postponed having children while others give up some things we might consider neccesities in order to save for a home, only to see prices rise exponentially faster than their savings.
Over the last five years, carelessness has been rewarded, while prudence was punished. The table has turned and I am supposed to feel sorry for the victims, sorry, can’t do it. The only reason to take an interest only loan is if you are betting on appreciation. Bets don’t always pay off, if you can’t afford to lose, don’t play and for god sake don’t ask for my pity if you lose. Don’t ask me not to say I told so, because I did and now I will.
I also don’t hang out in casino parking lots and feel bad for people who lost money even thought they thought they would win. I should, at least those people don’t drive up the cost of living for young families.
I am off the soapbox now, welcome aboard, glad to have a new face around here and do not buy that new house until yours is sold and the loan is funded, live in a hotel or your car if you have to.
