It's up to the mortgage companies to tell the borrower what is a reasonable amount they qualify for. New home owners have no idea about those things, the mortages companies do. Its their responsiblity to tell them they don't qualify for an amout that big, not to just hand them a quarter of a million dollars and tell them to pay only the interest and worry about the rest later. Especially when they only make 50 grand a year with other bills on top of that.

It would be the same if a Rx just threw the drugs at me and asked me to figure it out for myself when it is his job to tell me what I am taking.

Thats it, shift responsibility.  Johnny told me to stick my hand in the fire.  What a crock.  This is why our country is in the sorry state it is now, no one will take responsibility.  Yet someone making 50 grand had to be responsible to get to that level of pay.

It wasn't like the mortgage companies gave them millions dollars and they blindly took it , but even going over by 50 grand is an irresponsible move bu the banks. Telling them to take a volitile ARM over a fixed rate then a huge ballon payment that they can refi just before it comes due is BS. That is the boat most are in now. A mortgage payemnt that was$1,200 is now $2,400 and they can't refi because they can't get another mortgage. This bill won't help everyone, the bank must be willing to help them.

I just bought out here 2 months ago and got a great deal. This is a perfect place to buy for a first time home buyer, and when the market stabalizes, will be one of the only places in the valley that is affordable. As long as the local government spends money wisely in things that will make Maricopa an attractive place to buy, I expect to see things turn around nicely out here with in the next 5 years.

I wish I was in a position to buy up some of these vacant foreclosed or new inventory homes. This a potential gold mine for a well funded and pateint real estate investor not looking a quick return on the investment.

Apples and Oranges, the two don't compare. You are talking about signing probably the most important contract of your life. If someone doesn't do their homework and research and gets in over their head, it really is their fault for not being an eductated consumer.

There is plenty of blame to go around though, there were underwriters that were misrepresenting information on loan applications and misleading some people, and in those cases, the industry is at fault.  But overall most people got caught in bad mortgages becuase they were unrealistic about what they could afford, uneducated about the process and/or did not fix their credit score so they could refinance out of bad mortgage terms before it reset.

What are you talking about? Do you know how many people have moved here from other states, and will continue to do so? There could actually be a housing shortage in the future. Just because we don't have 4 seasons does not mean it is not a desirable, growing state. Pretty much everyone I know moved here from somewhere else, including myself.

Quote from Fritzy : "UNLESS you are lucky and were one of the earlier buyers you owe more than the current market price."


I wasn't an earlier home buyer. My contract was created in AUG 2004. It may be less than what I PAID, but I'm sure my home is worth more than I owe".

It wasn't luck. It has been done with purpose.

Unless some banker-guy, you just met, says you can.  Then you can buy whatever he says you can.

I don't call it luck, everyone has the same opportunity to buy and sell equally, I get tired of hearing the same ole  line about the profit on certain property.  How about the 50 thousand I lost last year in the stock market, I dont cry, just pick up what's left and go on.  Rich and Jason  got it

QFE.