I feel so terrible for these people, but we knew it was coming for a couple years now. It really makes me wonder though, how much financial planning people do when considering buying a house.
Listen to me. If getting into a house means living on a shoestring and praying interest rates don't go up and you don't have a medical crisis over the life of your Adjustable Rate or Interest-only Mortgage, maybe you shouldn't be buying that house. Buy what you can afford comfortably and still have extra left over every month for savings. If you're just getting by with two kids, why have a third? Don't start on me with people have the right to have as many kids as they want. Yes they do, but if it puts them in the poor house and the children they already have will be deprived, why bother? Money isn't the answer to everything but it sure makes life easier. Maybe, before overextending yourself buying that 'dream house', think about what your family will do if you're all living out of your car because you 'had to have it' and the bank forecloses a couple years down the line.
Yes, unscrupulous mortage bankers are a big part of the problem as well as the lassiez faire regulatory climate pervading Washington right now, but it's your money; the biggest investment most people will make in their lifetimes. Make certain you're dealing with someone reputable and all of your questions are answered before you sign on the bottom line. Remember the bankruptcy law they passed a while back? If you default, they'll own you for the rest of your life.
I see it all over my neighborhood, For Sale signs are popping up like crabgrass on every street. It's a damn shame these folks who were scraping by to begin with will now be even further in the hole.
And a word of advice, since I've been seeing so many infomercials and commercials touting some idiot's 'make money in real estate' plan. Save your money. Now is definitely not the time to start speculating in real estate. You'll lose your shirt, trust me.
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