For the Record
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.
Labels: Real Estate Rants