What's Wrong With This Story?
Wealthy may be next in line in home crisis
Who wrote that headline? They aren't wealthy. They never were wealthy. They might be "high earners" (what the heck does that mean?), but they were never "wealthy." They pretended they were wealthy and bought too much house. They bought a house they could not afford with a mortgage that they knew when they signed on the dotted line, that the interest rate was going to adjust at the end of 5, 7, or 10 years. If they were making enough money to have good credit, then they ought to have been making enough money to know better!
I have no sympathy for this garbage.
Save me from this stupidity. Forgive me, anything that is advertised on television at 2 A.M on the Spike Channel is probably not a sound financial investment. And if you've done it to "finance your lifestyle" (another gem from the article) than you're a bigger dolt.
Live. Within. Your. Means.
You sign the paper. You are responsible. I was warned against ARMs. Warned against. As in stay away. I was frightened of them by the very words involved ... Adjustable. No thanks. They do not lie about what they are. Their name is honest. Adjustable rate mortgage. There is no hidden agenda. They are what they say they are. You, the buyer, are responsible. It is your mortgage.
Why are the taxpayers going to bail out these people?
Addendum: I do not begrudge those who had medical emergencies, lost jobs, life struggles, death of prime bread winners their right to help getting the ground underneath them. Often times, you borrow against what you have. Your car, your house ... whatever. You have to do what you have to do.
But when you're making $100K a year and buying a million dollar house with a 5 year ARM, you're asking to be taken to the cleaners, and to be kicked out of your home.
Achem. Your house will cost you 1% of the total cost of the home to live in. Example: $200,000 home. $2,000 mortgage. If you do not have $2,000 a month for your home ... buy a smaller home. Or cheaper home. Whatever.
It just boggles the mind. I should have bought a huge house with a pool, outdoor kitchen, 5 bedrooms and a 3 car garage. If I couldn't make the payments ... Bush and Co. will come rescue me.
Adjustable rate mortgage. It's not like they called them, Fuzzy Bunny Rabbit Mortgage. Or, Easy Money Mortgage. They did not lie. No one lied. Adjustable rate mortgage.
And now that the rate is adjusting ... people are screaming foul.
Punch me in the stomach. No come on, punch me in the stomach!
OWWWWW!!! That hurt! That's it ... I'm telling mom!
Enter Nanny Uncle Sam.
I do not understand why I knew better (not extremely intelligent, not a Mensa candidate, I went to a state school, normal person Me) and thousands of others are like "Please don't let them adjust my mortgage! I know they said they were going to ... but I never really thought they would!"
Does this seem logical, to anyone? Really? Are common sense, normal thinking people really thinking that this is okay? Or are there just a bunch of idiots out there nodding in agreement as Brian Williams tells them a sob story about a family of 4 making $50K a year that bought a 4,000 sq ft house and is now in danger of losing it because their 10 year ARM is set to reset?
Sigh. Maybe don't answer that.
By Nick Carey
HINSDALE, Illinois (Reuters) - A house in this wealthy Chicago suburb is far beyond the reach of most Americans.
Unfortunately, Hinsdale may also now be too expensive for some of the people who already live here.
"There is a section of the population here that over-extended themselves to buy here and then keep up the facade of wealth," said Sharon Sodikoff, a broker associate at local real estate agency Prudential Homelife Realty. "In the next year or so they'll be forced out in dribs and drabs."
With a picturesque little downtown area and large, expensive houses -- according to the Headrick-Wagner Consulting Group, the average home sale price here in the 12 months to September 30, 2007, was around $1.15 million -- Hinsdale seems a world away from the housing slowdown that may have brought the U.S. economy to the brink of a recession.
But even here, far from the housing crisis' epicenter, high earners with good credit may be heading for trouble as their adjustable rate mortgages (ARMs) adjust beyond their means, local real estate agents and others say. In a normal housing market they'd be able to sell, but now they are stuck.
Who wrote that headline? They aren't wealthy. They never were wealthy. They might be "high earners" (what the heck does that mean?), but they were never "wealthy." They pretended they were wealthy and bought too much house. They bought a house they could not afford with a mortgage that they knew when they signed on the dotted line, that the interest rate was going to adjust at the end of 5, 7, or 10 years. If they were making enough money to have good credit, then they ought to have been making enough money to know better!
I have no sympathy for this garbage.
If some borrowers can't get into the market, there are others who can't sell to get out. Home owners who bought recently with no money down are the ones most likely to abandon a property when they fall behind on the mortgage.
"I've seen people who bought less than a year ago and have no equity in their homes
simply walking away with no regard for the consequences," said Genie Birch, a real estate agent at Chicago-based Koenig & Strey GMAC who covers the city's wealthier districts.Real estate agents say speculative investors who bought to make a profit are also walking away as the rents they charge fall behind the mortgage payments as their adjustable-rate mortgages readjust.
The home owners who find it harder to walk away are those who took out large home equity loans before prices started falling and now owe far more than their home is worth.
Save me from this stupidity. Forgive me, anything that is advertised on television at 2 A.M on the Spike Channel is probably not a sound financial investment. And if you've done it to "finance your lifestyle" (another gem from the article) than you're a bigger dolt.
Live. Within. Your. Means.
You sign the paper. You are responsible. I was warned against ARMs. Warned against. As in stay away. I was frightened of them by the very words involved ... Adjustable. No thanks. They do not lie about what they are. Their name is honest. Adjustable rate mortgage. There is no hidden agenda. They are what they say they are. You, the buyer, are responsible. It is your mortgage.
Why are the taxpayers going to bail out these people?
Addendum: I do not begrudge those who had medical emergencies, lost jobs, life struggles, death of prime bread winners their right to help getting the ground underneath them. Often times, you borrow against what you have. Your car, your house ... whatever. You have to do what you have to do.
But when you're making $100K a year and buying a million dollar house with a 5 year ARM, you're asking to be taken to the cleaners, and to be kicked out of your home.
Achem. Your house will cost you 1% of the total cost of the home to live in. Example: $200,000 home. $2,000 mortgage. If you do not have $2,000 a month for your home ... buy a smaller home. Or cheaper home. Whatever.
It just boggles the mind. I should have bought a huge house with a pool, outdoor kitchen, 5 bedrooms and a 3 car garage. If I couldn't make the payments ... Bush and Co. will come rescue me.
Adjustable rate mortgage. It's not like they called them, Fuzzy Bunny Rabbit Mortgage. Or, Easy Money Mortgage. They did not lie. No one lied. Adjustable rate mortgage.
And now that the rate is adjusting ... people are screaming foul.
Punch me in the stomach. No come on, punch me in the stomach!
OWWWWW!!! That hurt! That's it ... I'm telling mom!
Enter Nanny Uncle Sam.
I do not understand why I knew better (not extremely intelligent, not a Mensa candidate, I went to a state school, normal person Me) and thousands of others are like "Please don't let them adjust my mortgage! I know they said they were going to ... but I never really thought they would!"
Does this seem logical, to anyone? Really? Are common sense, normal thinking people really thinking that this is okay? Or are there just a bunch of idiots out there nodding in agreement as Brian Williams tells them a sob story about a family of 4 making $50K a year that bought a 4,000 sq ft house and is now in danger of losing it because their 10 year ARM is set to reset?
Sigh. Maybe don't answer that.
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