Quote:
Originally Posted by Bring_Back_Shantz
I agree 100%, but you can't deny that the flood of people who were now buying houses because they could "afford" 35 year mortgages with 0 down was also a big part of the problem.
I'm not saying this specifically about PP06 as I don't know the guy, but to me it seems like the kind of people who complain that they're getting "screwed" by this change are probably more likely to have that sense of entitlement that casued a lot of this mess to begin with.
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Why is it a sense of entitlement?
He is planning on selling his current place so he looks like he has his down payment put together. Sounds like he has done his research and determined what price range he can buy at based on the current available products and amortization periods. He and his family have a plan in place to make this happen and all of a sudden the government change the rules on him and he has to come up with a new plan on a very major decision.
I don't see the entitlement argument at all. If he is playing by the rules of the game and all of a sudden the rules change I can see why he feels screwed. It's not like he is asking them to change the rules to suit his situation, he is just trying to make the best situation for his family based on what he has been told one day and now the next day he is told something else, which causes a major kink in his plan.
I'm just using PP06 as an example as well. He sounds like he has his act together while others may not, and may feel they are entitled to get zero down 35 year amortizations, just because they were available 2 years ago.
I agree with you that zero down mortgage with 35 or even 40 year amortizations were a big part of the problem. I still can't believe products like that were actually available. Making people put down at least 5% of their own cash is essential.