Home Mortgage Crisis

I'm not talking about games again. I read another article on the mortgage crisis and still don't feel all that sympathetic to those who got in over their heads. I do feel sorry for those who bought a home that they could afford when they had a stable job, but then lost their jobs due to the economic conditions, couldn't find a new one, and can no longer afford their home. I don't feel sorry for those who had a job in unstable industries. I don't feel sorry for those who bought into adjustable loans. I don't feel sorry for anyone who bought a home that wasn't worth the asking price.

One major problem were those who got into terrible loans. If I was getting any type of loan, I would make sure I read and understood all of the paperwork before I signed it. It only makes it even more important when the loan is for the place you will be living. It baffles me why you would jump so quickly into getting a loan for $200,000+ without reading the fine lines. Maybe the people giving them the loans are giving them speculative information about the loan or assuring them that it's a great deal and also pushing them to get the loan so that they can get the commission. That's still not an excuse to jump the gun. When it is such a big investment, you shouldn't fall into these kinds of traps. Most people are weary of salesmen in stores or on car lots. They should also be weary of people who handle loans.

Those who bought over-priced homes were another problem. In Los Angeles homes are expensive. During the housing boom, homes were ridiculously over-priced. Homes kept inching higher and higher. More homes kept being built. I was surprised why people kept buying them up. Maybe it's just the hype. You have to buy a home before they get too expensive or until there are none left. I, on the other hand, didn't buy into it. Eventually it will hit a wall and prices would have to come down. Maybe this was naive thinking at the time. I didn't consider that low interest rates might balance out the cost of the home. In the end I was right and now homes are going down to affordable levels. (Unfortunately there aren't enough people out there with jobs that can afford them.)

I'm sorry for rambling about this. It's been talked about so much. I don't wish for anyone to lose their homes. I can imagine it's an awful thing to go through. Hopefully the economy will clean up soon.