VitalAccurateThinking

Home-owning - It's just math

If people would learn how to do math, owning a home would not turn into a nightmare.:

"'We thought we were fine,' Connie Pent said regretfully. 'You never know.'"

Umm...how could you not know? You took a risk by not putting down money and taking a variable rate mortgage. You gambled and lost. But of course, they are "victims":

Many of the victims are subprime borrowers...Many prospective home buyers, through little fault of their own, are having trouble getting mortgages because of the changing market.

Others were sold on too much house, piled up huge loans based on the inflated value of their property and didn't fully understand the interest rates they would have to pay. Now, they are struggling to keep up with the payments.

I agree. They are victims. They are victim to a lack of mathematical ability mixed with an inability to reason through complicated financial situations. Whose fault is that? Let's find out details on the Pents:

"The Pents grieve losing their three-acre property in the middle of horse country, with its swimming pool and fish pond.

"It was my dad's house," said Connie Pent, 39, an elementary schools receptionist.

"It's quiet, it's open — we love it."

Their troubles began in April 2006 when they refinanced the remaining $207,000 on a 30-year fixed loan to a two-year adjustable rate mortgage so they could pay down hefty obligations on their SUV and pickup."

I'll comment no further. The situation is self-explanatory from here on out.

posted by Jim VAT @ 11:03 PM