Originally Posted by josephr25
Yeah I told him about these things and what Media said, but he is determined to buy a place... even thought about moving out of state. I wish he would look at the bigger picture besides just owning a place... he's had a questionable credit history too.
He's renting in a relatively wealthy area so that his kid can grow up in a good neighborhood, but that just brings up more red flags itself.
I think in many aspects, he's like a lot of other people who have been tricked into thinking home ownership is the American dream, and everyone should buy a home. Everyone should lease and expensive sports car. It's only credit, it's not money right?
You would think after millions of foreclosures, and trillions in lost housing equity, people would learn their lesson, and actually do the arithmetic to see how much they can truly afford.
But I swear it's like they are lemmings jumping off a cliff, it's emotion over logic. I don't understand it, and the worst part is with this looming FHA bailout, they are bringing the rest of us over that same cliff.
I hope the end result of this bailout is that FHA finally disappears as a defacto sub-prime lender, and we don't give $729,000 FHA loans anymore to people with 600 FICO scores.