[sarcasm]

ping

[FreedomPoster]

Barnes bought a house in 1999. She was surprised that Irwin Mortgage, which her builder recommended, approved a $103,000 mortgage with her then-income of about $25,000.
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The reason: "They basically are telling me I don't have enough income to maintain the mortgage," said Barnes, who said she now earns $4,000 a year more than when she bought the house.

Anyone who believe they can afford a loan, the size of the one the mortgage company will give you, is incredibly naive. This is a prescription for being house-poor at best, or foreclosed-up/bankrupt at worst.

Our first house, 20 years ago, was $20k less than her mortgage, and we were both working and making about what she was, each.

[arete]

This problem is not going to be limited to the low income buyer segment for long. Rising values have given buyers the false sense that the can't lose by buying "up" even if it adds a little stress to the budget. It is easy for buyers to become self-delusional about how they can cut a few corners in the family budget to keep the payments made. Reality is a different story.

Richard W.

[petercooper]

Bring on the foreclosures!

[gunnedah]

Fannie Mae & Freddie Mac are going to be bigger than the great stock market scandal and even the depression!