Ron Spencer wrote:
As for the idea of home ownership being bad (or good) that's not the point at all. Of course home ownership is something fantastic....if you can afford it. Just by making loans easy to qualify for doesn't mean that you should own a home. The foolish no money down or 125% loans and such were just plain stupid and lead to the foreclosures we are now seeing.
looking from the point of view of what most consider the root of this current recession, the housing bubble, at least now home prices should become more realistic compared to actual value. how anyone in California affords a home is beyond me. while i agree the credit markets were way too free with questionable loans, a certain amount of risky lending serves a valuable purpose. it allows people to work hard and pay for a home they otherwise would not have.
but as usual the shifty folks took advantage of an idealistic ideal provided by the government to make a profit at the expense of homeowners. it was more than just no money down and dumb i agree 125% loans that caused the massive foreclosures. the inability to refinance ARM's seems to be a large part of the problem. when coupled with crashing home values people can't even sell their houses to get out from under the debt.
i realize mortgage banks are in the business of making money, but readily offering high interest loans to people with lower credit scores or low income is somewhat predatory IMO. i'm sure someone could have come up with a better albeit less profitable option for lower income lending.
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BenchWarmer Motorsports
another one of those damn LeMons heads
just another Chump
we are an Autocross Club Dammit............
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