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Originally Posted by Civicsman
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This is a massive over-generalization. Millions who had loans that expired during the melt-down were forced to forfeit their homes, because they could not get new loans. Two reasons: The banks weren't loaning to ANYONE, and the collapse of the housing market (as part of the melt-down) caused the value of their homes to drop.
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Any reasonable mortgage that you can afford expires when you pay it off. If you get a short term loan that you cannot afford, or an interest only loan because you cannot afford the payments on a standard 20 or 30 year loan, that is buying what you cannot afford. A generation ago, the bank would not give you that much money. Barny Frank and Chris Dodd helped to change all that.
People without money should not be denied houses because they had no money, according to them. So they got houses that they could not afford. Then, as a surprise to many liberals, they could not afford them.
I would love to hear of people who paid 10 or 20% down on a house that they could afford (as a debt to income ratio as used by banks and mortgage companies for many many years) that expired and caused them to forfeit their homes. I do not believe they exist as you said, in the millions.
Those who did not invest their own equity in their homes when they bought, and were buying short term loans because they planned to flip their houses that they could not afford are more likely the ones who wound up in the situation you described.
I have no personal knowledge of a mortgage that expires before the house is paid off. What expires is the interest rate on some variable loans. I have a 2nd mortgage, (an equity line) that is on a 10 year term, but that is not a device to buy a home, but rather, a device to take out equity on one you already own. (or the equity on the part you own)
Those who chose to move, either from choice or necessity, did indeed loose out, but that is the risk that everyone takes when they borrow money to buy something. That is the way that life works.
If so many people did not flip houses, and consider the increasing value of their home as a source of income (in re-mortgaging over and over for higher amounts) then their situation would not be as dire.
Any way you cut it, I believe that we can take a great deal of control over our lives by the choices we make, and you continue to say that you can do the right thing and still not be in control. It is that simple. I believe we can master our own destiny, at least most of it, and you continue to say that we cannot.
I do not agree with your position, but I am happy to leave you to it. Just please do not try to tell me that I am not allowed to have mine.