[Dems_R_Losers]

The issue is whether minorities, especially Hispanics whose Ensglish may be limited, trust the mortgage broker or banker to tell them that they can afford the loan. As a previous post said, it is one thing to "qualify" for a mortgage, it is another thing entirely to be sure you really have the money to pay the full amount you qualify for, PLUS taxes, insurance, repairs, furniture, utilities, lawn care, exterior an interior maintenance, etc. Most people probably shouldn't take out the largest mortgage they can qualify for, but a lot of perfectly "responsible" people don't understand that -- they trust the bank to tell them what they can afford.

Three years ago, after a big move when I made a killing on my previous tiny old house, I convinced myself that I "deserved" a large home on an acre of land. I easily qualified for the loan, a 5-year ARM at 4.25%. The montly payments even at that rate were $1000 more than my previous mortgage, but I figured my spouse would be working soon and we could cover it easily. Three years later, my spouse has just started working at a very low salary, our property taxes have gone up twice, and we are spending a fortune on utility bills and lawn care for this huge property. I'm not facing foreclosure, but I can sure see how easy it is for people to get in over their heads, especially in a boom time when it seems everyone is buying bigger and nicer homes and money seems so cheap.

One result of this problem is a push for government to step in and prescribe tighter underwriting standards so that people can't ever qualify for a loan that is more than they can realistically repay. There will certainly not be a bailout of lenders.

[haplesswanderer]

Yeah... I’m a divorced mom and I have a mortgage that’s tough to make payments on but you don’t see me complaining about discrimination! LOL I did recently acquire a fiance though and that helped me deal with my June ARM increase he he. Seriously though, my payment went up about $300 but I had planned for it and knew it would be ok. Worse thing though someone screwed up my escrow at closing and now I’m making double escrow payments :( I wasn’t explecting to have to pay an extra $200/month on that!

But, I’m not planning on letting the bank foreclose! It’s war!

[Xenalyte]

The issue is whether minorities, especially Hispanics whose Ensglish may be limited, trust the mortgage broker or banker to tell them that they can afford the loan.

Put another way, the issue is whether people who a) refuse to do math and therefore b) believe everything they're told should be allowed a loan.