Originally Posted by
TangMan99
http:///forum/post/2540657
I agree to no bail out. It is your responsibility to spend your money wisely. Now keep in mind the opportunity the banks and
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company were going for. They were handing out loans like candy to people with bad credit for a reason. Remember how the prices of houses were increasing in equity at an incredible rate? The economy looked strong and nothing pointed to this changing anytime soon. The banks felt they were taking no risk. They would give you a loan on $300,000 house knowing that when the rates went up that chances are you would default. The equity in the home after a couple years would probably have it close to $400,000 and you have been making payments during that whole time. They would evict you and sell the house for profit. It is the same principle that people do with buying a house for investment, renting it for income and then selling it when the equity goes up. The only problem is that the housing market went to crap and now they are all left holding the bag. Banks and people that bought houses for investment purposes.
The local news here had a family on that was crying about losing their home and how they were mislead into buying the house. A lady bought a $200,000 house with no money down by herself and didn't even have a job at time. That was their point in trying to say that it was wrong for them to give her the loan if she didn't even have a job. Boo friggin Hoo. It was still her stupid fault.
My neighbor bought 4 condominiums and built three brand new houses all with no money down and interest only loans. Let's just say today he doesn't even own his house in my neighborhood any more.
Also remember that many of the the houses that were purchases with no interest loans were for investment purposes to rent or turn over when completed. That was what my neighbor had planned. Buy at preconstruction prices, it was taking a year to build them here as the housing market was on fire, close shortly before building and sell the contract before the house was even finished. If you did it right, you wouldn't even make a payment. At that time, houses were going up around $50,000 from the time you put a deposit down up to the time you closed. Do I feel sorry for these people? Not one bit. I had the same opportunity and I passes because I have better sense than that.
when i picked out my home to be built it was the year of 2004 and the houseing market in oklahoma was just starting to take off, the price on my home was 138.000 and that was the price io got locked in, when it was finished 6 months later it was worth 156,000, the next year it was 170s, the year after is was 190s, and today it is worth 125k, but what i dont care about is that i bought this house and had it built just for raiseing my kids, and well my oldest is 5 and i have 3 kids, its going to be a long time befor i care what the value of my home is worth, sure i could have made alot of money if i would have sold it about a year and a half ago but im not into flipping homes
this was just a example of what tangman was talking about wasnt ment to dog him or anything
