There's something I don't understand. I've been watching a lot of CNN lately what with the election coming up and news about hurricanes blasting the east coast (btw, we made it through Hanna with just a lot of wind and rain, but no damage...thanks to everyone who emailed me or commented on my last post!). Well, today they're talking about the government helping to bail out Fannie Mae and Freddie mortgage lenders, but something they said really struck a chord with me.
They said that today there are 1.4 million foreclosures in the U.S. and the people want the government to help people bail them out.
This is what I don't understand. Granted, there are a lot of people unemployed, but didn't they take that into account before they took on such a high mortgage? Didn't they think of backups? What to do if their job wasn't there say in the next year or two?
That's the problem with America. Sure, you can have your white picket fence, but why do you have to get into something that has such high risks if you know darn well that sometime down the road, there might be a problem with your job or a problem with your health?
I know it sounds like a dumb question, but let's get real here. Why do we overspend and hope someone can bail us out? Where are the smart thinkers here?
Sure, we have no idea what the future holds, but if you're sitting there contemplating a high mortgage and you have just fallen in love with this house and just have to have it and you know darn well that $2,000 a month is a lot of money and you're just not so sure just in case something else comes up down the road that will prevent you from getting that kind of money, and you're thinking and thinking, and you know what happens? The realtor tells you that if you want this dream home, you must act fast because there are other bidders and you know what happens? Sensibility flies right out the window and you make a bid.
Let's just say this bid is what the seller wants and you get the house. You give your mate a high five knowing you've "won," settle in, buy new furniture, make upgrades if necessary and then along comes high grocery bills, high utility bills, kids needing braces, car needs fixing or replacing and you don't want to admit to your friends and neighbors (or yourself) that you just don't have more money to spend since you already have a big chunk of that paycheck going to mortgage. But, you know if you don't pay the utility bill, it will get turned off, so you pay that. If you don't get your car fixed or replaced, you'll have no way to work to pay that high mortgage. If you don't get you kid braces or cheerleading costumes or classroom dues or a million other things that kids need in this gotta-have-everything world we live in, you're job as a parent is kaput. No, no, you can't have any of that happening, so you pay.
Along comes that high mortgage and you're thinking where in the hell am I going to come up with more money since you've already paid for the cost of high living the good life? You freak. You call the bank. You call the mortgage lender. You call your mom to bail you out again, and Mom's the only one who has it because she thought SMART and perhaps looked ahead.
I know times have changed, but it's time people did look ahead and be responsible for stupid moves like taking on more than they can chew.
But this won't stop anyone. They'll get help from the government and still go out and live like kings. I just don't understand.
Think, people. Think ahead, that's all I can say.