Bankers and other mortgage slime were at least partially responsible.
For example, when my wife and I were looking to buy here in NC in 2006, we were given a limit of $350k. At the time I was unemployed and my wife self-employed. That limit was arrived at by looking at her earnings for one year.
Contrast that to our first mortgage in 1998 where we had to go back a number of years and a person had to be at a job, IIRC, at least two years to get a mortgage.
We ended up spending less than half that, at the mortgage agencies' displeasure. Fortunately for me my wife had the wisdom to listen to me and not demand a house closer to that limit even though at the time she was a little skeptical of my doomer views.
But I, being a member here for two years at that time, had an idea of what was coming and that a $2500/month house note was probably not a good idea no matter what our combined income was in 2005.
Some people weren't aware and their eyes got bigger than their wallets. They fell for "the value will go up every year" and "you just can't lose on this deal". Trusting these so called experts.
Why on earth would banksters offer that kind of money to people who in all likelihood would have been another foreclosure statistic if they had agreed?
Greed. Pure unadulterated greed. Light sweet greed. We were awash in it. They made their money up front.
Perhaps some heavy sour common sense will come out of all this mess.
Thanks PO.com. You've (at least helped) saved my ass more than once.
So I continue reading and learning from the many knowledgeable posters here.
