Most of the comments on my last post were in agreement with my point of view. But, there was one comment that I want to highlight. It follows:
I suppose I am one of the irresponsible home buyers. I purchased my home 3 years ago (at the high) I now realize I payed too much, because the value has come down. I also have a 3 year ARM with IndyMac which is due to reset soon. So, being able to refinance with the governments help is essential. For the past year I have been trying to refinance my home into a conventional 30 year. It has been impossible because the 20% I put down has disappeared. Actually my home value is down close to 25%. No bank wants to touch me. I am one of the homeowners with an upside down mortgage. I obviously regret not getting a conventional loan in the first place. But I can’t second guess myself now. What I need to do is refinance and the government is making it affordable for me to do just that.
For those who say to just let people lose their homes are not thinking ahead. Do you realize how many more homes will be on the market. Prices will absolutely drop even more.
I truly believe people are not in this housing predicament because they are reckless with their financing.
I for one pay all my bills and will continue to do so. I intend to continue to stay in my home with the help of the government. That is what our government is for. I have paid into the system for the past 20 years, my hard earned tax dollars are finally helping me. I will not regret it one bit.
Where do I start?
“I intend to continue to stay in my home with the help of the government. That is what our government is for,”
What she is REALLY saying: “I intend to continue to stay in my home with the help of my fellow taxpayers. That is what my fellow taxpayers are for.”
THAT IS NOT WHAT YOUR FELLOW TAXPAYERS ARE FOR! We are not here to support people who make bad decisions.
“I truly believe people are not in this housing predicament because they are reckless with their financing.”
I believe this is EXACTLY why people are in this housing predicament. People got into this mess thinking that housing prices would continue to go up and that they could refinance whenever it became necessary. They were counting on two things:
1. Housing prices would continue to rise.
2. Lenders would continue to lend at favorable rates.
They took a gamble and they lost.
Look, I feel bad for this person. She bought her house at the wrong time and with the wrong type of loan. But, she got herself into this mess and it should be up to her to right the situationeven if it means losing her house.
Lastly, she says…
“For those who say to just let people lose their homes are not thinking ahead. Do you realize how many more homes will be on the market. Prices will absolutely drop even more.”
So, lots of people didn’t think ahead and now responsible people are being accused of not looking ahead. Interesting… Yes, prices may drop but they will eventually even out as new buyers will emerge (law of supply and demand). It’s not going to be the end of the world.