Wednesday, April 6, 2011
Accountability anyone?
http://www.youtube.com/watch?v=coSn3iCTbBw&feature=autoplay&list=PL9D5372719B1A3FC6&index=4&playnext=2 The opinions about this video can go either way. Most people dont bring an attorney to a mortgage closing, but where is the accountability of the homeowner? Who knows better then they do what they can or cannot afford on a monthly basis. This video illustrates the lack of self awareness that pervades our society. That many people now sign mortgages without even reading the paperwork blows me away. If you dont understand, you shouldnt sign. Greed overcomes common sense more often than you might think.
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ReplyDeleteLinks says "video was removed"...
ReplyDelete"Greed overcomes common sense..." seems so general to me. It may have been true in many cases, I'm sure, but maybe not the majority. It could also be said that, "The desire to live in a safe neighborhood overcame the desire to read legal documents written in a vocabulary that only someone whose received a higher education in economics can understand." The what are the chances that someone who is buying a house with "no money down" can afford to hire an attorney? (Which is probably a surefire sign, right there, that you're not ready to purchase a house.) The video below this one shows us that the people that mortgage companies are targeting are already earning low incomes.
I'd be interested to find out the number of "McMansions" have been foreclosed v. the number of "dominion homes." Where I'm from, working class people have been forced to leave their homes in cookie-cutter housing developments that went up in the 90s. (Normalish-sized houses, 2-3 bedroom.)
(My first two comments were removed because I have a bad habit of posting and then realizing my typos..)
I'm having trouble viewing the video as well, but I strongly agree with Toni's comment. It's easy, as a college student from a reasonably educated family, to say that people should have known what they were getting themselves into, but many lacked the experience or education to recognize predatory lending practices. I hear loan ads on the radio all the time that offer a better life with no money down; when listened to without the proper grain of salt, they sound too good to pass up. It's easy to see how so many people found themselves signing up for loans that they could not really afford. While they did sign on the dotted line, many people had no idea what they were getting themselves into.
ReplyDeleteIf they sound too good to pass up, you should probably pass on it then right? Aren't we told that all the time. If its too good to be true, it probably is. There is no excuse for predatory lending, my point is that for most people, though, there is some realization that they shouldnt be doing it but the desire to own a home overrides their logical thinking. If people werent asking questions because they didnt understand, or were intimidated by the situation then they were probably already in over their head.
ReplyDeleteI agree that the responsibility has to ultimately rest with the homeowner, the one signing a contract and putting down money. That doesn't mean that the nation and the various communities within it don't have a responsibility to better educate those people about what exactly they should be looking for.
ReplyDeleteWhat would be hard about including a mandatory week or two about basic practices and realities for home buying at the end of high school and college? That sits outside the normal academic world we're used to experiencing in school, but especially at state-funded schools, this is an investment that would immediately pay off in terms of better financial practice by the nation's citizens.
I agree with Alex, I think that the responsibility lies on the homeowner on being educated with signing a contract and understanding what they are getting themselves into. I think the responsibility for this education also relies on the community as well. Until I have started taking this class two weeks ago, I had no idea of the dangers in home ownership and the process in which takes place. Sadly, I'd probably fall for the scams on the television and newspaper adds, but now that I have a clear understanding for the process, my approach to attempt to buy a home will be much different.
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