Bernanke Supports Expanded FHA

I feel for those who got into those loans that reset at higher intrest rates and now they can't afford the higher payments. I do not want to bail them out with tax payer money though.

Those high prices and reset's are really in a few localized areas where lenders and builders scalped the buyers.

The price of homes in these affected areas has to fall to the price that can be purchased by most people.

People were buying houses that they could not realistically afford. The prices of these houses would have never reached the amounts that they did if loan rules were applied in a responsible lending manner; such as review the borrowers ability to repay the loan, as well as afford the other cost's of living. I think the rule was at one time 40% of net income was the amount that is figured to be the amount you could expect to pay a home loan.

Problem, yes, for those that are not going to get the money they thought they were. How does that affect the rest of us? Not sure really. Banks don't have the money that they thought they did on paper. How does that play out? Some folks don't get loans. Others sue the banks for their money? Banks/lenders get bad credit because they can't make their payments?

The home owner walks on the loan, has marks on his credit and can't buy a home later. The houses sit on the market until responsible buyers can buy them.

Hmmm, looks like in time everyone will get back on track. It will take time is all.

But I don't think that my tax money should go to help these irresponsible buyers or lenders.

No one helped me or my neighborhood when the oil bust hit Texas and so many lost their homes then.

We made it through and the tax payers did not help us. I think things will be fine, and I do feel sorry for those homeowners that will lose their homes.

Bill of TX 5:53PM May 06, 2008