Quote:

Quote:


If you bought a house you could afford and the house went down in value what does that have to do with affording it? Life isn't always wonderful. But, you still have a house.





That's the bottom line right there. You find a house, like the price and payments, and buy it. Then someone says it's not worth as much? Deal with it. Same as a car, you buy some $30,000 car, drive it away from the dealer, it's now worth $22,000 and declining daily. But do you just let it get repo'd? But since it's a house, somehow people think differently? I don't get it. Plus, this whole deal with an ARM loan, how can anyone possibly think a bank will EVER adjust an interest rate IN YOUR FAVOR? Lock in a rate you can deal with. It's like a casino, you can't beat the house!



ok, canadian here, so take this with a grain of salt. I thought one of the things that happened is that people who owed more than the house was worth were unable to renew mortgages and therefore lost their house (or had to sell or whatever) i.e. it was the lender that pushed the button, not the borrower.