is it the banks fault or the homeowners?

by Mónica, M

Question by Skinny Dippin’: is it the banks fault or the homeowners?

http://finance.yahoo.com/news/Owners-Stop-Paying-Mortgage-nytimes-4276925797.html?x=0

i just read this article and i dont know how that many people going in to foreclosure could be that dumb to take out such huge mortgages and not budget and figure out how to live within their means.

i honestly believe it is the homeowners fault, not the banks. of course there are those that lost their job and cant pay because of that.. but the ones that still have a job and whatnot, like the people in the tale its like they just want a emancipated ride. i dont make it. You make in to debt you need to figure out how to pay it.. not go out to the lake on your gas guzzling boat and out to dinners at outback for steaks.

please give me your thoughts on this. Am i the only one who budgets and saves and makes sure i dont make in to a mortgage i cant afford and still place money up your sleeve?? sure you can blame it on the bank and say well they shouldnt have loaned the money, but COME ON!! if you are the one asking for the loan YOU above anyone else should know your financial situation and whether you can afford it or not..
i was watching HGTV the other day and this one link buying a household was like.. well the bank approved up for $ $ $ $ i didnt reckon we could afford that much, but if the bank approved us for it we must be able to afford it.. is that how people really reckon??? is that how people buy houses?? is that how they “budget” because if that is im sorry, it is not the banks fault.

please share your thoughts…

Preeminent answer:

Answer by Gaytheist Buddha
There are many of us who sensibly budget our resources and ensure we don’t enter into mortgages that we cannot pay. I agree it is really unfair for the government to aid people who are upside down on their mortgages. But the consequences of not helping would be far worse for society than doing nothing.

Yes, that is how most people reckon, if you can call it thinking. Many people only consider their next paycheck but cannot see one, two, or five years into the future when their ARM adjusts upward by 5 points.

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