According to the latest government and industry figures, foreclosures are up 9 percent between June and July of this year, and up over 93 percent since last year at this time. But before you start crying about the banking boogeymen, let’s keep in mind that, as consumers, some of the responsibility for this “can’t pay the mortgage” peril of Polly mess is from our own stupid mistakes.
Right now, the industry is rife with too-good-to-be-true financing deals, and now that these loans are starting to get some legs under then and the fine print starts smacking buyers upside their heads, the reason is clear: the loan terms WERE too good to be true.
Much of the housing boom of the past decade or so has hinged on out-of-control property revaluations – a hidden form of taxation – paired with “cheap credit” loans in which the average Wal-Mart employee can get approved for a $150,000 loan, only to find out he or she can’t keep up the expenses, bills and assessments made against such a spendy property. Easy credit means easy foreclosure.
Been there, learned the lesson, never gonna make the same mistake again. Keep in mind what our fathers all told us: nothing in life is free. Medicine like a strong dose of reality like that can cure much more than any nutritional supplements you can find.