I was watching a show, 20/20 or 60 minutes or something like that a while back. they were talking about the "poor folks" losing their houses left and right. they interviewed one young (30ish) couple, can't remember what state, maybe Florida.they had 3 kids, mom had some minimum wage job, dad was a general laborer for a contruction company, they brought in less than $60,000.00 yearly combined, but bought a house that needed bigtime repairs, it was "her dream house", paid something like $275,000.00 and needed another 75k in repairs....hubby was going to do it himself as they went along, both driving 10+year old vehicles.....hubby lost his job, mom's job would not even pay the monthly bills, much less the note.........the whole story line was about how they were losing their "dream house"........
My wife has worked in the banking industry for 22 years now, the last 18 or so in loans.....she could not believe her eyes!!!!!!!!!! they could no more afford that home, than riding the space shuttle the next trip it makes.....What she could not understand was, who would loan them the money in the first place!!!! and second; how they ever figured they could pay the loan back and make the needed repairs to the house.....BTW: it looked way overpriced..........
She told me they turn down request everyday for home loans, especially from people who have no clue what's going on and have no reasonable chance of making the payments....The head loan officer has a statement he tells a lot of these young folks when they ask why they are being turned down for a loan to buy their "dream house"... it's very simple, he tells them and I quote:"You have to learn to live within your means." end quote...........
When I married in 1978, my dad co-signed for me and the little wifey to buy a 960 square foot wood frame home, that we paid off in half the time, and lived in for 10 years.....we saved all we could to buy our "dream home" and when the right one came up, we were able to put 50% down and paid off a 15 year note in 9 years.....we lived within our means!!!!!!!!!!!!!!! I drove an old truck for years, wifey had bought a new car months before we married and drove it 10 years, but it was ours....today the kids want new Z-71's,can't drive a "used" truck or program car..bass boats that cost as much as the truck and get used 4 or 5 times a year, then they cry when they get laid off and can't make the notes........sorry, I just have a hard time feeling sorry for people like that..............
David