Not just our finances, Melanie . . . but all the choices we make in our lives. We're a world of finger pointers. But ultimately, we're driving our lives. Good point and good post!  :)

Melanie, excellent point. You too Candice.

Who are the Jones anyway, they were probably trying to keep up with the Smiths. Stop the madness.

They were probably told more than once by more than one person that the interest rate was adjustable.

Every closing I have attended, the closer points out to the buyer the current interest rate and payment. He/she will explain to the buyer if the rate is fixed or will adjust.

I am sure there have been unethical lenders that will "sneak" one over on a buyer, but in the end, it is the responsibility of the consumer to understand what they are signing.

All of us on this side of the fence; real estate agents, lenders, etc. need to make sure we are providing the best possible information to the buyer that we can. It is then up to the buyer whether they choose to listen or not.

Excellent points. I think it is symptomatic of the take no responsibility for your actions and blame others society that we live in.

I completely agree with your statements and wish ALL of my buyers were as responsible as I am about my debt, but if I wait for that to happen, I may as well find another career...

This might be (ok most likely is) off point but going along with society's interest in blaming someone else ( ie its the fast food chains fault I'm obese, my parent's fault I cant bond with others, etc) another issue I have is the fact that most children are no longer being taught to compete. Any more it seems like everyone must be a winner, everyone played a good game, all participants get a "participation award", and everyone did their best. While the last may be true (some peoples best is not as good as others but it is still their best) in most scenarios there is only one winner (or team).  To make their award no different then the rest I think cheats them of the esteem of winning.

      If you go for that job interview and dont get it they arent going to give you any "participation pay" for interviewing....

you will still need to find a job.  

     No one is going to read the documents for our buyers or sellers. They are signing those docs, They are agreeing to the terms, should we make sure they are aware of what they are signing? Yes I think to some degree but who are we to tell them what they want? If they sign anyway in two or three or five years and those arms jump the "nobody told me" defense isnt going to cut it with me.

Excellent points.

I agree that if they were not told, that is one matter. However I find most clients nowadays have tunnel vision on the subject.

ARM = adjustable rate mortgage.  The operative keyword here is "ADJUSTABLE" damnit. Page 87 in Websters 4th Ed Collegiate Distionary defines it as "a looming or pending change of circumstances".

An attorney friend of mine uses the term "attempting to interject reason" where clients simply hear the information being presented to them but never really listen. I love the term becuase it really describes our efforts in an environment where we are faced with breaking through the 3-second attention span.

I recently had a seller that hit the nail on the head. I think Mary was touching on the subject.

We received an offer on their home and I presented it to them. In the conditions, the buyer was asking for help with closing costs and down payment assistance. My seller's response was "Why should we do that, we didn't even help our kids with their first home?" I had a very difficult time explaining to them that in today's market, it is almost expected that the seller help the buyer.

The more I thought about it, the more I had to agree with my sellers. We are living in a society that has the attitude of "I want it NOW". There is no sense of tomorrow, or working to achieve a goal. This is the main cause of the tunnel vision that Brian mentioned. If society would slow down and realize that what I do today will positively or negatively impact tomorrow, we may see an improvement in all aspects of our lives, not just real estate.

I know that the majority of real estate professionals and lenders will never suggest to a buyer that they sign a document without completely explaining what it says. It is up to the individual to remove the blinders and look at the whole picture, this we can't force them to do, we can only hope they are listening to everythign we are saying.

Yea, all of the terms of the loans are explained several times, and at closing. Disclosures are sent prior to closing.

They just want to act like victims so they can try and get pity or goverment help.

I don't know that I would admit I was so stupid, I did not understand simple plain language.

And yes to the original post. Folks want to live above their means. And then whine when they can't pay the bills.

The loan programs helped many good folks I had achieve the American Dream of home ownership and they bought within their means and are paying their mortgages. To the few out there that are not and then cried I did not know what I was doing, are such cowards. They put a damper on the entire system of others who are hard working and paid their bills and love their homes.

Back to apartments to all of them. And they will be slums for they don't rent to folks who let their homes go to foreclosure either.

I think we have just started the I'm a victum rally from the consumer.We all will hear in the future that "we should have told them." I think that the average client will not point the finger but I also see that some clients will want to get some relief from any place they can get it. If the fed's do give any kind of relief to the people that have to short sale for example will eventualy get that 1099c in the mail. So The finger pointing that will follow ,well we will see. We all know some clients living on the edge and thoes are the ones to watch.Do any of us realy think that the people that have the neg am loans do not under stand that the 500k home they live in they only have to pay a 1500$ payment. Come on how stupid do we realy think people are?

Melanie, I used to work exactly that client based, the first time homebuyers with no money. Most did OK, most were so appreciative. It is the most rewarding of all real estate. Helping the first time buyer get a home. And yes, it is going to get tougher in light of this mortgage issue, so my suggestion is try to move up to the 2nd home market now. Start mailing all of those folks and see if some are ready to sell and move into their 2nd home. Advertise a few homes, in the price range of 2nd homes, our area $150-$250. Good luck, and feel good about helping the first time home buyer.