Quote:
Originally Posted by mookiemookie
That's true, there was definitely a lot of that. Shows like "Flip This House" and that garbage only fed the fire. There was a ton of demand, and banks were all too willing to feed it and give money to people who had no business getting a loan. And why shouldn't they? If they knew they could make a loan on Monday and sell it to Wall Street by Friday, what the heck did they care if the borrower was going to repay it 30 years down the line?
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Well sure Mookie, it was a soup pot full of things that contributed. I believe most can be attributed to living way beyond their means. Some lived off their homes with refinancing to the hilt. These individuals paid the credit cards after the refinance but ran the cards up again. Sooner or later you can not refinance your home. Just not smart living off your home like that. So, the next thing you know your mortgage is twice what it was before the refinance, you credit cards are up to the limit again because you needed that John Deere tractor and the Craftsman at a 1/3 of the price would just not do in your neighborhood. So, who gets the shaft first with no payments? The credit card folks. That only last so long before the long arm of the lawyer is sending court order for payment. Now that the law is after you for the credit cards what suffers next? The house payment. You basically got three months to figure it out before that long arm is putting your goods out on the street. The house sold at a short sale. I can only point one finger here....the consumer. The one who signed the dotted line without reading. The one who needs a trip to Disney every six months. The one that need the Hummer. Time for a lot of folks to take the responsibility of the failure of their finances.