Is it fair to blame lenders and money advisors for people's overspending?
By stylioJ
@stylioJ (403)
United States
September 17, 2008 9:39am CST
In the U.S., we are experiencing high numbers of home foreclosures. Many people are blaming the lenders and their financial advisors for allowing them to borrow the money for a house they couldn't really afford. While I feel like there are probably some shady business people, I also think that individuals should be smart enough to research the market and have an idea of what they can afford. I heard of one story where a girl who made $50K in a year bought a $450,000 house. She was suing for being led to believe she could afford that. But seriously...with some common sense, wouldn't you know you couldn't afford that much of a house with that salary? I'm not knocking people who truly just got hit by hard times on a house they could afford before. I'm just talking about people who have no clue in the first place.
1 person likes this
2 responses
@snowy22315 (182415)
• United States
17 Sep 08
Alot of people make dumb decisions that is true. Sometimes they get seduced by the terms of the loan they are offered and just hope everything will stay the same. You have to be alittle bit smart about what you are doing though or you will end up with a major problem. Fortunately my mortgage is quite low so I dont think I will ever have a problem, if I did I would sell rather than go into foreclosure. That is awful
1 person likes this
@SweetNkky (119)
• United States
17 Sep 08
People should know that banks and mortgage investors are trying to do their job. Yes they are going to make it seem to good to be true, which in that ladies case was. We are responsible for our own decisions. We are the ones that have to hand over our income and papers to get qualified so that means we had to look at them to know what we can afford. Some people who have over spent are just looking for an easy way out and someone else to put the blame on other then their selves.
