[SamAdams76]

I agree with you that it's not the economy. But predatory lending is just a part of it. The other part of it is that there are too many couples buying houses these days based on two incomes. Take a two-income family making $100,000 a year for example. Instead of settling for the affordable 3-bedroom ranch house that would allow them to still make payments if one of them were to lose their jobs, they go for the much more expensive 4-bedroom colonial. Then when he or she gets laid off, they are thrown into a serious financial crisis.

It is also not a good idea to purchase a house unless you have at least 20% down. And it is not a good idea to take out a second mortgage or an equity loan to pay off your credit cards and other debt, unless are are serious about not running up consumer debt ever again.

[scooby321]

Huge Foreclosures and Yet a Booming Housing Market ???

[cmsgop]

I agree with your major points, but 20% down is something alot of Americans can't even fathom let alone come up with.

[Nubbin]

Instead of settling for the affordable 3-bedroom ranch house that would allow them to still make payments if one of them were to lose their jobs, they go for the much more expensive 4-bedroom colonial

I'm amazed at the size of the houses I'm seeing built in my area. I live in a small community, therefore I know where these people work and about how much income they have. I have to wonder how in the world they can expect to afford their mortgages which has to be over half their income.

[OldBlondBabe]

"Take a two-income family making $100,000 a year for example. Instead of settling for the affordable 3-bedroom ranch house that would allow them to still make payments if one of them were to lose their jobs, they go for the much more expensive 4-bedroom colonial. Then when he or she gets laid off, they are thrown into a serious financial crisis."

Add to that the new furnishings and landscaping all charged to the credit card....

[stainlessbanner]

Great points SamAdams. I would be interested to see the average debt that college students graduate with, specifically ccard debt.

[FITZ]

Take a two-income family making $100,000 a year for example. Instead of settling for the affordable 3-bedroom ranch house that would allow them to still make payments if one of them were to lose their jobs

What gets me is that the same exact house my dad bought new for $15,000 with 4% interest rates quite a number of years ago in a neighborhood with similar houses where everyone had families living on one income is now more like $100,000 and would take most families two incomes to buy. The exact neighborhood only with old homes instead of new ones now has two income families buying those same houses.