What is the definition of “poor people” ? Maybe some of you in SD that can’t afford current housing prices? Just kidding. But really, I think the typical lax lending standards sets a trap for a family with low income. The low tickler rate lures them in, but as soon as there is a rate reset or their income takes a hit, they are toast. Most middle income families aren’t really ready for any kind of income change. I read all the time that most families have no savings. So, if they are a two income family, living off both incomes and then lose one of those incomes, they are probably going to lose the house. A lot of families in America now have a lot of stuff, using credit, but you really couldn’t say they were rich. They are kind of like poor, but got a lot of stuff they really don’t own yet, with more income than someone living in a van down by the river.
