Friday, October 17, 2008

For the Record

My clientele may not encompass the broadest range, dominated by persons with college degrees, oftentimes secondary degrees. I haven't, for example, represented many retirees. I also work with a higher percentage of foreign born buyers than is the norm, though Los Angeles may account for the unusually cosmopolitan mix.

Pleasantly, I've yet to have a client enter foreclosure as a direct consequence of their purchase financing. (One client endured foreclosure, but for reasons unrelated to his purchase loan.)

Many of my home buyers utilized now demonized creative financing instruments: stated income, adjustable rate and interest only products. A few put no money down, and even wrapped closing costs into principal financing. But all planned accordingly, some re-fied in a timely fashion, others were prepared for higher payments. In short, they acted responsibly.

I know predatory lending existed, and probably, misrepresentations were made, particularly to less sophisticated Spanish language speaking immigrant purchasers. Some parties may deserve federal intervention.

But as a guide backpacking through the REO wasteland, I also see the failed flips with grotesque great rooms and porno showers. The high-lifers, who exhausted their generous equity lines, on boom-boom machines, and tables at the Tropicana. Even the shirkers, without the slightest tingling of obligation, unwilling to service--regardless of means, a now desiccated investment.

To these and even noble folk over-matched by the obligation of homeownership, assistance should not be forthcoming. The Robin Hood politic is an insult to that greater number of deft, dutiful homeowners.



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