I think it is crazy how things have changed so dramatically in the housing market. Instead of people worrying about trying to pay their mortgage, people are admitting up front they won't be able to pay it and are asking about forclosure. It blows my mind. I guess I don't blame them though. If I were buying a house at this time I'd have similar questions with the housing market the way it is right now. Buying a house seems scary. There is a serious connection between the financial market and housing market. With the situation the way it is, you never know who to believe. They say it's the best time to buy a house all the time, but how do you know when it really is. Best of luck to people trying to buy a house!
One of the things mentioned toward the beginning of this segment is something that I found interesting. Mary said that people were buying houses that they could barely afford - where the payments each month were a struggle for the homeowners. It surprises me that people continue to do this. To me, it seems like common sense. Whether the market is good or bad, only buy things that you can regularly afford to have. The second part of the segment where Mary talks about the people who are trying to strategically default on their homes seemed strange. It baffles me to hear that people that can pay their mortgages, don't want to. I guess what they're saying is true, that it is a business deal. It seems to just prove that business deals are not always about the right decision, sometimes they're just about the best decision.
The real problem here is people taking out loans that they cannot afford and banks giving out loans to people who can't afford them. Foreclosure has now become the smart economic choice, with the amount of money owed to the bank greater than the value of the home. This is just a sticky situation for everyone. Banks now have all these foreclosed homes that nobody can afford and people who have declared bankruptcy are stuck with a bad credit score and are now stuck trying to find another place to live. What needs to change is that banks need to make smarter choices on who they loan their money to.
I get where the people are coming from who want to bring on the foreclosure sooner. It is really unfortunate to owe so much more money to the bank than your house is actually worth. I think owning property is the best and safest investment you can make, but if your paying into the bank and not building any equity, i can see where it almost seems pointless and its easier to do a strategic default. On the other hand though, I don't think anyone who knows they won't be able to afford a property should attempt to buy one. They think they'll get by but really they are all destroying the economy. Obviously people are going to take their chances and try to take out loans they can't afford. This is where the banks should take responsibility for their loans.
I think that it is an outrage that people who could afford to pay their mortage are bailing out because they find out that the property is not worth what they thought it was. I was very suprised to hear that it is not against the law to do that! These people that are filing for foreclosure actually have the money in the bank to make the payments but they just dont feel like it. I completely understand for people that really cant afford it, i.e people who have lost their job. Thats a different story.... but for those who can still afford it i dont think that fair game.
The whole housing crisis is a mess. The turn around in the phone calls Mary Kinsley received, is not surprising, but it is sad that the Housing Crisis has been brought to this. People are choosing the cheaper way out to avoid any type of downfall. I don't blame these people for looking out for the themselves especially when at this time, no one really has your back. The banks aren't really helping. The downside to this is what happens to the people who can't even afford to purchase the "cheaper" housing or can't even afford to keep up with their payments. These people who can afford to pay their mortgage aren't making it any better for those who can't.
Becca Keener 0858 Sect. 2 Mon/Wed/Fri 10-10:50
ReplyDeleteI think it is crazy how things have changed so dramatically in the housing market. Instead of people worrying about trying to pay their mortgage, people are admitting up front they won't be able to pay it and are asking about forclosure. It blows my mind. I guess I don't blame them though. If I were buying a house at this time I'd have similar questions with the housing market the way it is right now. Buying a house seems scary. There is a serious connection between the financial market and housing market. With the situation the way it is, you never know who to believe. They say it's the best time to buy a house all the time, but how do you know when it really is. Best of luck to people trying to buy a house!
One of the things mentioned toward the beginning of this segment is something that I found interesting. Mary said that people were buying houses that they could barely afford - where the payments each month were a struggle for the homeowners. It surprises me that people continue to do this. To me, it seems like common sense. Whether the market is good or bad, only buy things that you can regularly afford to have. The second part of the segment where Mary talks about the people who are trying to strategically default on their homes seemed strange. It baffles me to hear that people that can pay their mortgages, don't want to. I guess what they're saying is true, that it is a business deal. It seems to just prove that business deals are not always about the right decision, sometimes they're just about the best decision.
ReplyDeleteThe real problem here is people taking out loans that they cannot afford and banks giving out loans to people who can't afford them. Foreclosure has now become the smart economic choice, with the amount of money owed to the bank greater than the value of the home. This is just a sticky situation for everyone. Banks now have all these foreclosed homes that nobody can afford and people who have declared bankruptcy are stuck with a bad credit score and are now stuck trying to find another place to live. What needs to change is that banks need to make smarter choices on who they loan their money to.
ReplyDeleteI get where the people are coming from who want to bring on the foreclosure sooner. It is really unfortunate to owe so much more money to the bank than your house is actually worth. I think owning property is the best and safest investment you can make, but if your paying into the bank and not building any equity, i can see where it almost seems pointless and its easier to do a strategic default. On the other hand though, I don't think anyone who knows they won't be able to afford a property should attempt to buy one. They think they'll get by but really they are all destroying the economy. Obviously people are going to take their chances and try to take out loans they can't afford. This is where the banks should take responsibility for their loans.
ReplyDeleteI think that it is an outrage that people who could afford to pay their mortage are bailing out because they find out that the property is not worth what they thought it was. I was very suprised to hear that it is not against the law to do that! These people that are filing for foreclosure actually have the money in the bank to make the payments but they just dont feel like it. I completely understand for people that really cant afford it, i.e people who have lost their job. Thats a different story.... but for those who can still afford it i dont think that fair game.
ReplyDeleteTalia Banks M, W, F 9 am
ReplyDeleteThe whole housing crisis is a mess. The turn around in the phone calls Mary Kinsley received, is not surprising, but it is sad that the Housing Crisis has been brought to this. People are choosing the cheaper way out to avoid any type of downfall. I don't blame these people for looking out for the themselves especially when at this time, no one really has your back. The banks aren't really helping. The downside to this is what happens to the people who can't even afford to purchase the "cheaper" housing or can't even afford to keep up with their payments. These people who can afford to pay their mortgage aren't making it any better for those who can't.
http://www.youtube.com/watch?v=d0nERTFo-Skq
ReplyDeletehayek v keynes