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My mistake (with hindsight) was not being more cautious. I needed a home to start my family, and moving hundreds of miles away (which would have made me jobles

My mistake (with hindsight) was not being more cautious. I needed a home to start my family, and moving hundreds of miles away (which would have made me jobless) to a depressed region just to find an affordable house was out of the question. My wife and I were told that real estate was a "sure bet". I distinctly remember my mortgage broker telling me "I can't promise you anything, but real estate prices have been going up for 12+ years straight" Everyone a generation older than us were living in (and selling) houses that were skyrocketing in value. We felt that if we didn't buy now, we'b be priced out of the market forever. That being said, there wasn't a single person in my wife (personally or professionally) who could have warned me. It was either keep renting or jump in.

CodeCube 8y ago
Just to ++ this sentiment. This echoes my situation back then as well. The only thing I can think that _might_ have helped me in hindsight, was a combination of better consumer protections (I got that loan with zero down ... and they glossed over the details of the adjustable rate mortgage); and also just wish I would have had better financial literacy. I take full responsibility for my own situation and the outcome. The only thing I can do now, is incessantly knock the knowledge into my kids. Hopefully when it comes time for them to "make their own mistakes", they can at least learn from our experience.
- josefresco 8y ago
  "I got that loan with zero down ... and they glossed over the details of the adjustable rate mortgage" Stupid me! I saved 20% like a dope and watched it go poof! I'm kidding (not really), but they also "glossed over" my income statements, which I could have made up because I was self-employed. I also got stuck with an ARM, which I thankfully dropped before rates starting climbing. The ARM was sold to me based on the "fact" that my home value would skyrocket, and I would re-mortgage before rates increased. "I take full responsibility for my own situation and the outcome. " Everyone burned like you and me does this. We own it, because that's the right thing to do. It's the ones who made out like bandits who don't and won't own up to the damage they caused.
  - settsu 8y ago
    > Everyone burned like you and me does this. We own it, because that's the right thing to do. It's the ones who made out like bandits who don't and won't own up to the damage they caused. Same. Painful, expensive lesson that I own up to for my part (mostly, blissful ignorance…)
- LarryDarrell 8y ago
  >I take full responsibility for my own situation and the outcome. This pisses me off (not at you! just the sentiment). Every one around you (people you trust and respect) says buy a house before you can't afford it. Your experience is housing prices rising for 10+ years. Nothing in your environment suggests the party is nearing a close. Society creates a system where home ownership becomes not just a way to keep a roof over your head, but an investment. Moreover, it becomes one of the few investments attainable by the middle and lower-middle classes. Mortgage brokers abandon all pretense of due diligence and devolve into a sophisticated scamming machine. They offer financial instruments to people they know cannot fathom the consequences of. They advertise and amplify the societal pressure to get in now before it's too late. You are not a rational super-human. No one is. (Any one who thinks they are just lucky, and humans are awful at understanding luck) I don't blame anyone who signed their name to a ARM one bit. To do so is to completely ignore the intense societal and economic pressures of the time. We used to understand that moneyed interests were not interested in the welfare of every one else. We used to ban snake oil. I don't know what changed. Maybe it was Reagan and Chuck Norris movies.

CodeCube 8y ago

Just to ++ this sentiment. This echoes my situation back then as well. The only thing I can think that _might_ have helped me in hindsight, was a combination of better consumer protections (I got that loan with zero down ... and they glossed over the details of the adjustable rate mortgage); and also just wish I would have had better financial literacy. I take full responsibility for my own situation and the outcome. The only thing I can do now, is incessantly knock the knowledge into my kids. Hopefully when it comes time for them to "make their own mistakes", they can at least learn from our experience.

josefresco 8y ago
"I got that loan with zero down ... and they glossed over the details of the adjustable rate mortgage" Stupid me! I saved 20% like a dope and watched it go poof! I'm kidding (not really), but they also "glossed over" my income statements, which I could have made up because I was self-employed. I also got stuck with an ARM, which I thankfully dropped before rates starting climbing. The ARM was sold to me based on the "fact" that my home value would skyrocket, and I would re-mortgage before rates increased. "I take full responsibility for my own situation and the outcome. " Everyone burned like you and me does this. We own it, because that's the right thing to do. It's the ones who made out like bandits who don't and won't own up to the damage they caused.
- settsu 8y ago
  > Everyone burned like you and me does this. We own it, because that's the right thing to do. It's the ones who made out like bandits who don't and won't own up to the damage they caused. Same. Painful, expensive lesson that I own up to for my part (mostly, blissful ignorance…)
LarryDarrell 8y ago
>I take full responsibility for my own situation and the outcome. This pisses me off (not at you! just the sentiment). Every one around you (people you trust and respect) says buy a house before you can't afford it. Your experience is housing prices rising for 10+ years. Nothing in your environment suggests the party is nearing a close. Society creates a system where home ownership becomes not just a way to keep a roof over your head, but an investment. Moreover, it becomes one of the few investments attainable by the middle and lower-middle classes. Mortgage brokers abandon all pretense of due diligence and devolve into a sophisticated scamming machine. They offer financial instruments to people they know cannot fathom the consequences of. They advertise and amplify the societal pressure to get in now before it's too late. You are not a rational super-human. No one is. (Any one who thinks they are just lucky, and humans are awful at understanding luck) I don't blame anyone who signed their name to a ARM one bit. To do so is to completely ignore the intense societal and economic pressures of the time. We used to understand that moneyed interests were not interested in the welfare of every one else. We used to ban snake oil. I don't know what changed. Maybe it was Reagan and Chuck Norris movies.