Is home ownership worthwhile, round two

A follow up to Is home ownership worthwhile?

Anyone with half an ear cocked towards the news — be it TV, radio or internet — knows of the crisis of housing foreclosures in the U.S presently. The Arkansas Democrat Gazette featured a story on the number of foreclosures in Arkansas this morning.

I don’t understand how these people, many claiming “unfairness” when interviewed, end up in these situations. I’ve known since high school to stay away from adjustable rate mortgages — not to mention the more floozy no-interest loans so many seem to have been suckered into. Granted, I grew up in a very fiscally conservative home; my parents did their best to instill financial prudence in their children.

How does a consumer’s ignorance or risk allow them to claim unfairness? I’m not trying to be mean by asking this, but I don’t think I’ve heard anyone else ask it in the last month — and the circumstances with such a claim beg the question. Sure, certain American dreams are going in to the toilet, people losing everything, upside-down on their mortgages. However, I don’t remember anyone anywhere making any kind of assurances about housing prices or the American dream.

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About pcNielsen
Paul Nielsen founded The Aesthetic Elevator late in 2005. He owns a piece of paper, located somewhere in his house (not on the wall), stating that he earned a B.F.A. from the University of Nebraska around about 2001. While there, he studied studied architecture, graphic design and ceramics, graduating with a degree in studio art. Paul presently serves as communications manager for a small non-profit doing their print design and marketing. He spends as much time sculpting in his studio as possible — which is not nearly enough. Visit his website at pcNielsen.com.

2 Responses to Is home ownership worthwhile, round two

  1. Its still a wothwhile proposition if the situation is right for both lender and buyer…I posted about this here take a look:

    http://chicagoviprealtors.typepad.com/chicago_metro_vip_realtor/2007/03/and_in_this_cor.html

  2. TAE says:

    True, there are probably a couple instances where such loans can fly — I suppose an investor looking to turn a property over in a hurry could be one. But I constantly worry about the “fake” money the U.S. economy continues to build itself on. Let me just say that [when] the economy crashes, I won’t be the least bit surprised.

    As you say on your blog, which was most of my point, you should be smart in your borrowing.

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