Wednesday, October 22, 2008

Mortgage Crisis – Makes Me Vomit

How can a housepainter get a $350K plus home? Reading a story about the California housing debacle in the WSJ, I couldn't contain my rage. Basically, a bank gave a loan with nothing down to a housepainter who takes home $3,000 per month. The initial payment: $2,000 per month. While the borrowers are not blameless, anyone who participated in giving them a loan should go to jail.


Money Quote: A California state housing agency also chipped in a $11,200 loan toward the Pedrozas' purchase. Ms. Pedroza figured that with her husband bringing home $3,200 a month as a house painter, the family could afford the monthly mortgage payment of about $2,000. Ms. Banuelos, a college student, said the payments were affordable for her husband, who also had ample work as a house painter.

No comments: