Quote:
Originally Posted by 427 S/O
The housing mess will fix itself, I don't see any remedy except time. Half the folks who received help with their 'readjusted to a more affordable mortgage', have defaulted!. The folks that were evicted are now renting, they will buy again, only this time, a home they can realistically afford. Also, hundreds of thousands of newleyweds are, and will be buying homes. IMO....
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I agree, the government needs to stay out of it. The market will correct itself. People that lied to get stated loans, gambled with adjustable rates or option arms, bought houses they could not afford etc... will become renters again.
I am sure there are hardworking people that were caught up in this mess, but all the ones I know that are losing houses were speculators. People that would have been lucky to qualify for one house went out and bought 3-10 houses thinking they were going to flip them and make money. These same people were telling me I was stupid for locking in both of my houses at 5% in 02. They all thought equity was real, when in fact it is only real when you sell the property. If you borrow against equity it is just a secured loan not a bank account.
BTW, These people are now walking away from these houses with no loss except bad credit and the loss of payments they made towards these properties. There should be more accountability IMO. These were properties that were bought in an attempt to make money and I think they should have to pay back these loans even if it takes the rest of their lives.
I lost over 500K in a business venture and I did not have the option to walk away. These speculators are getting off way to easy IMO.