Let the buyer beware
by
Clyde
6:48 AM
All over the news we see and hear the candidates talk about bailing out those who are facing foreclosure because of predatory lending and adjustable rate mortgages. Yet not a word is being said about those of us with fixed rate mortgages. Do we not suffer from the same economic woes as everyone else?
The fact of the matter is that the foreclosure crisis is affecting everyone, but only those at the very edge of the precipice are being discussed. I understand that political candidates have to pander to the masses in order to be elected, but the pandering needs to be spread across the spectrum and not just on those who are being showcased on the nightly news. There are thousands, if not millions of responsible homeowners in need of some assistance. But because they were smart enough to stay away from an APR mortgage it is assumed by those in Washington that all is well.
While I do believe in giving those in need a helping hand, there is a certain amount of personal responsibility that is being overlooked. When I first bought my house in 2001, I did not go into the deal blindly. I took my time, did some research, and taught myself what the best mortgage option was for me. Many of those who are being talked about did not.
Let's be frank, many of those with APR mortgages were trying to make a quick buck, plain and simple. They bought a house they knew they couldn't afford in the hope of making a fast buck by flipping it in four or five years. Or they were duped into it by a mortgage broker who inflated their income and played number games with their credit to sell a mortgage they suspected would be in default before the mortgage expired. To put it plainly, people were out to get paid and now they are caught with their pants down and now we need to bail them out because of our "booming economy."
I'm sorry but I feel no pain for those who were dumb enough to keep their APR for this long. I know it sounds cruel but if these people were not smart enough to read the tea leaves a couple fucking years ago, then they are getting what they deserve. With Bush using the national credit card like a trust fund baby to pay for Iraq, it doesn't take a rocket scientist to know that eventually the bill would come due and those who did not plan for it were going to be fucked like a Paris Hilton video.
This crisis is not going to go away anytime soon and we need real homeownership reform now so we do not have this problem in the future. Personally what I would like to see is government sponsored mortgages with interest just enough to cover the cost of overhead on the mortgage. No more fixed rate or APR at all. Make it a one time deal for every American to own a home if they choose.
There would have to be stipulations of course but it could be done. The buyer would have a chance at this once and only once. No commercial property would be considered and the buyer would need to stay in the home for at least half of the life of the loan with exceptions being few and verifiable. All insurance considerations would be mandated as they are now by private mortgage lenders but no "Act of God" stipulations would be allowed. Up front costs would need to be less than 1% of the total in order to get the buyer the room to make the move and do any home repairs.
Just think what this would do both for the individual and society as a whole. They say one of the biggest causes for divorce in this country is over money and a lot of that has to do with carrying a mortgage. I'd be willing to bet that because the mortgage payment would be considerably lower because of no interest being paid, we would see some decline in divorce rates. Not to mention, when people buy a home, they usually want it in a good neighborhood and are willing to keep it that way. Result, lower crime rate.
Maybe I am suffering from Cranial to Rectal Insertion, but it makes sense to me.
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