Reply #158: blondeatlast, the fact that you "did it the right way" doesn't make you entitled... [View All]

[El Pinko]

...to rising equity, or even any guarantee that your equity won't plunge.


If you bought before the bubble, you will only be losing illusory bubble equity on paper. If you bought during the bubble, I'm surry, but how anyone could bave bought in 2003-2006 and not know they were buying in a speculative bubble is really hard for me to fathom. I'm not an especially savvy person and I knew it.


I understand your anger - but it really should be directed at the lenders who engineered this whole debacle. They did it KNOWING this would happen sooner or later, but they didn't care because the money was too good. The government also should have been providing regulation and oversight and didn't.


If you wan't to blame fools who bought into the whole flip this house get rich quick BS for getting out before they go under, that's up to you, but I personally think that most of them were naive and did not intend to do this at the beginning.

As for the neighbors' cars - obviously we can't peer into everyone's finances, but my guess is that most people who decide to keep the BMW and leave the house are doing so because they can afford the $400 BMW payment, but they're not anywhere close to affording the $5000 reset house payment.

I know you've suggested that the lenders should help these people stay in their homes. Maybe so. If the lenders offer to keep them at the low teaser rates indefinitely. With the economy going the way it is, putting off the resets for a year or two will only postpone the foreclosure, because most of these people never had prospects for that kind of income in the first place.

If you can afford you payments, bully for you. Eventually you'll have more equity in your home again. Runaway inflation and dollar devaluation may bring that day sooner, especially if working and middle class wages finally start to pick up.