Hi Jane…..how wunnerful to see you once again at the drawing board.  I have missed playing in the sandpile…and I have a bunch of lollipops collecting…as I was the one always bringing lollipops for everyone.  LOL  Tell lily hi and come again ….soon.  There’s not a lot of my friends left here now.

Love,

Rainbow, Jr (cause mom said I could use the computer)

Hmm, I didn’t really get this adaptation of the artwork, but I didn’t get the original either. There are other sides of foreclosure also. Some owners purchase with no money down or refinance to cash out with no intention of paying, then strip the house of everything, including the toilets, sinks, furnace, pipes- anything they can sell or trash. It costs lenders lots of money to get the house back through forclosure and to put the house in sellable condition.  A mortgage or note and deed of trust is a contract, with the borrower promising to pay. He pledges the house as security and if he doesn’t repay, the lender’s recourse is to take back the security for the note. Lenders do not want the property back, they want their money. Lenders are not always big banks and an infinite number of investors in mortgage-backed securities. Lenders are also your local bank, credit unions, a seller carry-back, parents. Would you deny these parties the legal right to enforce/satisfy the contract?

We are seeing an unprecedented amount of defaults because of the greed and foolishness of a great many parties- real estate agents, loan brokers and lenders, and home buyers. Yes, you as a buyer can have changed circumstances and not be able to repay your mortgage, but if you "qualified" for a loan that you knew was unrealistic because you wanted a house beyond your means, then you are as guilty as the greedy agents and lenders that also were involved.

Creative financing is not always a good thing. If you don’t understand it, then don’t sign. If you want to own a house, then purchase what you can reasonably and honestly afford, and work your way up the property ladder. This sometimes takes a while, like years. Forget instant gratification, you have to work for something. My first house was 2 bedroom, 1 bath, 1 car garage. We traded up to a 3 bedroom, 2 bath. I got divorced with a little cash out. I bought a mobile home, got remarried and sold the mobile home for what was owed, I made no money. We bought a 2 bedroom 2 bath house. Sold it and bought a 3 bedroom 2 bath with 2 car garage on 1/2 acre that had been a foreclosure. It needed work, we fixed it up, then sold at the height of the madness in 2004 and left So Calif for Arizona where we paid cash for a 3 bedroom 2 bath house with 1 car garage on 1 1/2 acres. But it took me 30 years to get to this no mortgage place. We don’t have a McMansion because I don’t want to heat or cool or maintain more than I need. And I never, in all those years, got myself into an adjustable loan. Agents and lenders will try to talk you into something that makes you uncomfortable- don’t do it.