Re: Foreclosures and short sales
From: Diana Carroll (dianaecarrollgmail.com)
Date: Wed, 11 Feb 2015 07:57:31 -0800 (PST)
On Wed, Feb 11, 2015 at 6:52 AM, R Philip Dowds <rpdowds [at] comcast.net> 
wrote:

> It sounds like you had a lot of members who were unrealistic about housing
> costs, and who moved into your community with no financial margin of error.


It's possible that was true in the case discussed, but I want to point out
that foreclosures can happen to people who are very responsible and
knowledgeable financially and have a margin of error, too.  It's a
myth/stereotype that smart, responsible folk don't end up in dire financial
straits.

Anyone, no matter how educated and responsible, is vulnerable to prolonged
unemployment, catastrophic illness, death of a family member, or other
devastating blows that reality can hit people with.

I have a friend who lost her house.  When she bought it she was a
successful professional with plenty of savings and good financial acumen.
Then she was caught in the claws of mental illness.  She had plenty of
"financial margin", so she was able to keep her house for the first 5 years
of her troubles...but her illness outlived the margin, and in the end, she
ended up borderline homeless.

I'm all in favor of homebuyer education and other measures you
mention...but I wanted to call out your assumption that a foreclosure ipso
facto means someone was "unrealistic about housing costs".   That's just a
variation on the standard stigma of poverty, that the problem lies within
the person.

Diana

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