Re: Biden -- Wants to give away houses???????
or simply means what they say, "you bought with an arm, what did you expect?"... that everything would just keep going up and... what? it would all just keep going up?
sadly (for those caught in the squeeze), things usually don't work this way for very long.
and to the other comment, it seems to me it's not where you live but how you live that influences the thinking on this: people who bought / live within their means / didn't go out on a limb leveraging themselves to the teeth likely have less to sweat about.
as for the dotcom bubble, yup, that was a bitch. some lived and learned, some didn't.
Absolutely, how many tech stock did you own prior to the crash?
The whole point is, I HAD equity, and so was my neighbor who put down $70k and thought he would be safe. The whole point of the crash is supposed to be a market adjustment/correction, but lost of 45% in value is more than a value adjustment, it is a over reaction. If the foreclosure situation is "only" have as bad, people can easily pull through it in couple of years.
I have a investment rental property in Washington state and that property so far, increased value by 40% since three years ago, but dipped 15% last three months, that is a reasonable "adjustment/correction."
Therefore according to you, in a similar situation, people who invest money in tech back in the days, who lost 90 plus % in matter of days, never gain it back, are irresponsible?
The government should not force the mortgage company to lower the balance, that should be negotiable between the owner and the bank if applicable. The market needs to sort things out on its own, this way, the "real" value of the property will prevail.
In my case, people with similar situation just need to bite the bullet and deal with it, like the money people lost over stocks over night.