It seems that you can’t pick up a newspaper or turn on the news these days without seeing something about subprime mortgages. It’s especially interesting to listen to the politicians talk about the subject.
Politicians on one side of the aisle say that this is some big conspiracy by evil mortgage companies and they must be punished. The politicians on the other side say that the borrowers were just too dumb, or were financial speculators and nothing should be done.
I’m not advocating either point of view. I just want to share the story of two of Visser’s employees that were caught in this mess to show that it’s not as simple as the politicians make it out to be.
The first employee is a middle-aged, married woman. She has owned her house for a number of years. Her and her husband raised their kids there and everything was going along fine. Then, serious medical problems hit, and even though they had insurance, the out of pocket costs were big. They were stuck—couldn’t pay. The only way they could make it was to refinance the house. Needless to say, they got an adjustable rate mortgage and now the interest rate has reset. The medical bills are mostly gone, but sadly, they are going to lose their house in the process.
The other employee is a single mother, working hard to support her kids. After years of saving, she was finally able to get her piece of the American Dream. It was a modest house, but I have never seen anyone that was more proud. Unfortunately, her mortgage rates have also risen substantially, and she may also lose her house—along with her life savings.
As I said before, I’m not pushing any particular solution, or trying to place blame. My point is that when you see these stories, remember that they are really about real people going through the worst time of their lives.
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Sorry to hear about both of your employees. People are quick to blame the banks, and I agree the offers made were ludicrous. However, we also must accept responsibility for our own actions - it's like the old say, "it it's too good to be true, it must be." I was a single mom in California. Therefore, I know what a struggle it is to survive there. I managed to buy a townhouse the old fashioned way while residing there. I left California, bought a home in Virginia, remarried and just purchased another house with my husband in Kentucky. The lender asked me if I wanted an interest only loan - common sense tells you "no." What benefit is there to buying home without building equity? You may as well rent . . .
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