I was just reading an article on MSNBC.com about how banks are fearing that more people with walk away from their mortgages as the economic woes increase.
Wanting to get a take on this, I started reading the article. And now I am just plain ole pissed.
The example in the article was a woman from southern California that worked as a cocktail waitress (and speaking as someone who has worked in those shoes - it is not exactly stable income!) and purchased a condo in 2006 for $191,000.000.
Since the downturn in the economy, her income has had a downturn as well. Not as many people going out and spending all kinds of dough on drinks, etc.
My problem is the fact that this woman was fucked from the get-go. Read this quote from the article.
"The single, first-time home buyer bought a two-bedroom condo in Calimesa, Calif., in 2006 for $191,000. She wasn't required to put any money down despite her limited income as a waitress, thanks to a lofty credit score of 788. The financing consisted of two interest-only loans with initial rates of about 7 percent and 10 percent."
Did you catch that? Two, I repeat, two INTEREST-ONLY loans at 7 and 10 percent!! 7 and 10 percent!!
What in the hell was she thinking when she signed on for this? She signed on for not one, but two stupid ass loans. The bank was stupid or arrogant or greedy or all of the above enough to give her the loans.
And now I, the on-time-bill-paying average Joe, has to bail them both out. I know this is old news but dang, that pisses me off!!
10 comments:
Oh Crap! Now you've got me pissed off too. I give the bank that gave her the loan The Big DUH! Award of all time. Jeezuz pleezuz!
It gets worse than that. In Orange County CA a dump sells for over 400K. There are numerous undocumented day laborers who were given home loans for 100% of the purchase price with no LEGAL proof of income. This is very common and of course when some of their neighbors found out that these idiots will get a "pardon", they got mad and stopped making their mortgage payments. I blame the greedy mortgage brokers, and Freddie Mac who lowered the standards....AND the greedy homebuyers. I don't want to bail them out or the the big 3 Automakers.
Yeah...this IS pretty much old news. And this is why all of these bailouts seem to be somewhat futile. Should we bail out every person who makes bad decisions? I say NOT!
Who's gonna bail us out if we make a wrong decision or can't manage our finances??? It chaps my hinny..big time!
It's enough to make you start baking a cake =)
Don't you know that it is the American dream to be able to own your own home ... whether you pay for it or not.
Come on baby, aren't you ready to "spread the(your) wealth?
I agree that it pisses me off how messed up this whole situation is and we have to bail out bad decisions. Won't that just encourage more bad decisions?
I am right there with you. It is annoying how the banks and the people getting the loans did this to all of us.....no one should buy anything they can't afford. No one should LOAN money to people who can't pay.
This whole thing STILL baffles me. People think that they are "entitled" to things that past generations have actually had to WORK for! And the banks/gov't. seem to think so as well...
I feel mad also. I also feel like things could get worse for EVERYONE if the government doesn't do bail outs. I don't understand it all, but I am concerned.
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