- Joined
- Nov 13, 2009
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No, first time buyers were buying houses because they could buy one for about the same amount of money they were paying for rent thanks to low interest rates.. Building equity instead of throwing money away on rent. Sounded like a smart move at the time. Now it doesn't seem so smart. They were not greedy and it wasn't speculating. They were reaching for the American dream....Home ownership. People that already owned homes were buying bigger and better homes, their dream homes, because the low interest rates let them move up with almost the same payment. Then the economy went sour, outsourcing became the norm and people lost their high paying jobs. Remember when the DOTcom bubble burst? Most foreclosures were due to loss of a job or change in the employment situation. Expect a lot more, for the more jobs that are lost the more foreclosures are in our future.
You just are not correct on a lot of levels. First, it was not only the rash of first time home buyers who defaulted. Next the housing market collapsed then the economy went into the tank. Next most foreclosures are on houses where the mortgages are underwater. Therefore for people with no ethics it is better to walk away from their mistake then continue paying for a house that they paid too much for. The rest of us do not get to walk away from the risks we take that do not work out.
People put no money down on houses. I remember seeing someone on TV, he made something like $40K and bought a house that cost $800K. There was no way a person like that could afford that house. I don't believe anyone he was so stupid as to think he could. He said he thought he would own the house for a year or two then move to a cheaper state. This on a show blaming the banks!
Nothing good can come out of an entitlement society that allows this kind of crap and then blame the " system". No wonder other nations are eating our lunch economically.