Warning – this blog posting may cause readers to think it was written by a Grinch so don’t read unless you can have an open mind!
A recent Wall Street Journal article expounded again on the plethora of homes facing foreclosure across the country. I read the article at work and then happened to listen to NPR on the way home and again, heard about homeowners (what term do you use for someone who owes more than a home is worth – they certainly don’t own anything about the home except the mortgage) who are losing their (the banks’?) homes along with a chunk of their savings, their credit and in some instances their marriages and families.
Over 20 years ago, a divorce put me in the unpleasant position of being forced to sell our home and become a renter for 18 months while my credit went south and I could have legally filed for bankruptcy. No government agency bailed me out of foreclosure and I survived. I could have whined to a Wall Street Journal reporter or Oprah (had she been on the air at that time) but for some reason, those options didn’t occur to me. Instead, I played the hand I was dealt. Was it fun? No way! Did I learn anything? You bet! I was angry, pissed, bitter and could have cheerfully shot Starter Hubby but decided I didn’t want ex-con on my resume. I figured I’d just bought myself a real education so I put one foot in front of the other, tucked my pride in my pocket and carried on. I was fortunate to have a great job, loving and supportive family and friends and the ability to live pretty darned frugally.
So my sympathy for people with mega-mortgages who speculated on a bigger house than they really could afford, or took a chance on market values rising is pretty low. Our free market economy of supply and demand will rebound if the government will keep its nose out of it – people will rebound too and they’ll come away stronger and wiser and perhaps won’t make the same mistake twice. I’m not so heartless as to wish people living out on the street but sometimes they just have to let go of the dream and settle for reality and as the saying goes, Reality Bites! It sure bit me!
You know, I can tell these people where to find sympathy in the dictionary…
In my experience, frugality breeds creativity. Quit sitting on your ass waiting to be bailed out and get creative, people!
I know it’s from USA Today, but I think this article shows the other perspective on this is a lot of people who didn’t quite know what they were doing got themselves into home loans.
A bailout might help people in trouble (whether that’s deserved or not is a second question) but it seems like discipline and standards about how much home one can afford—and what kind of loans can be made—would be a more long-term solution, yo.