Originally Posted by MediaArtist
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.
I don't know how people get these loans. In the middle of this past summer my wife and I (both have nearly perfect credit, no auto loans, and plenty of income) were put through the ringer to get a $415,000 loan while putting 23% down.