Home Foreclosures: How Homeowners Contributed to the Crisis

While it’s popular to blame banks and fat-cat Wall Street execs for the home foreclosure mess, the simple truth is, homeowners deserve some of the blame as well. Case in point:

If you earn $35,000 per year, do you think you can afford the mortgage of a home that costs approximately a quarter of a million ($250,000) dollars?

If you ran the numbers, you’d quickly see that the answer is no. In the October 2009 Credit Union Times article, Member Fights Foreclosure and Fla. CU Over Misapplied Payments, one homeowner quickly found this out. She’s now facing foreclosure. And quite frankly, it’s because she couldn’t afford this much home on her salary. The article states:

Soto’s annual salary was roughly $35,000 back then. Her monthly payments on the $240,000 loan started out at $1,500 and went up to roughly $1,800. She acknowledges now that her salary may have been too low to stand up to the monthly loan payments.

Until Americans learn to become better savers and rely less on debt “as a lifestyle”; NOT simply a way to achieve “responsible life dreams (ie, home ownership)”, what we’re going through now is bound to repeat itself.

Live Rent Free!

Learn how to get a 1-3 or even a 6-12 month break from making any mortgage payments by just a simple series of phone calls (to the right person) followed by a faxed form (form included).

P.S.: BUSINESS OPPORTUNITY. Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family. How lucrative is this business? Learn how one foreclosure cleaning biz owner makes up to $40,000/wk.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.