"Every improvident loan requires an improvident borrower to seek and accept it." -- George Will
The news has been filled with stories about all the people who are losing their homes due to foreclosures. I guess I'm supposed to be horrified and feel sorry for them,. I'm not and I don't.
What does bother me is the idea that the Federal government is supposed to step in and bail these folk out.
Well . . . because . . . uh, it's the fault of the companies that TRICKED them into mortgages they couldn't afford.
Yep! Sure is!
Jumped right out, grabbed these people and FORCED them to move into a house, and not just any house either! Nope! It was house they knew these folk simply couldn't afford to make monthly mortgage payments on.
(Oops. I forgot the exclamation point.)
Obviously Da Kid and Herself really screwed up when they bought their home last year. Got it all bass ackwards. The dummies.
First, they worked out a monthly budget based on what they were earning. Not what they might next month (or year or decade) but what they had been and not gross but net. From that they subtracted monthly expenses such as car payments, estimated utility bills, the cost of food, etc. The balance was what they had to pay a mortgage with each month.
With that information they went to the bank they'd been dealing with (individually and later together) for several years and showing their figures to a loan officer, pre-qualified for a boring, 30-year conventional mortgage that would cover a house costing up to X amount.
To make matters even worse, The Deadly Duo only gave serious consideration to houses within that limit. Yeah, they looked a several that exceeded that amount (and by quite a bit), but those were Grins and Giggle stops, usually punctuated with the line, "How the HELL could anyone afford to pay that kind of mortgage!" once the sales agent was out of earshot.
What a mistake.
Da Kid and Herself should have bought a house they couldn't possibly afford to pay the monthly mortgage on. If they had, if the Hildabeast and her herd get their way, we'd be paying their mortgage instead of them.