Buying And Selling: A Helping Hand

Patrick.net pointed me to this article from the San Jose Mercury News on the increasing pain of homeowners as mortgage rates rise.

While this is depressing in and of itself, I wanted to address the attitude a good number of housing blog commenters (and some writers) take towards people who find themselves in this position. The consensus often seems to be that they deserve what they get for taking such a risk, and that they should have educated themselves financially. They get called "FBs" (as in "F$%ed borrowers"), "homedebtors," and all manner of fun things. The tone is often dismissive, condescending, and downright mean.

I don't think this is fair. Does America's savings rate suck? Absolutely. Do we lack basic financial education? Absolutely? Should parents, schools, and the workplace teach people the necessary knowledge to buy homes, invest smartly, etc.? No doubt.

What you have to remember is that the system is gamed to play on people's ignorance. Credit cards, "creative mortgage," unscrupulous auto lenders, etc.--these are all built to screw you if you don't know what to do. And many people simply don't have the time to find the knowledge they need to make smart decisions. They have families to raise, bills to pay, etc. And--let's be blunt--not everyone is an MBA or financial wizard. Should we then say that you don't deserve to own a home if you don't pay micro-level attention to gold futures or derivatives?

I know that I, as a neophyte housing blogger, learned much of the game from reading the works of everyone from David to Ben Jones to Tim Iacono. The knowledge is out there for everyone to take advantage of, but it's still an uphill battle against a complacent media and the publicity machine of the realtor and financial industries. Shocker of shockers, the blogosphere is not the be-all and end-all.

You shouldn't buy a home if you don't have all the facts at hand and haven't done all your research. By the same token, you shouldn't scorn and dismiss people who got scammed by flippers, shady lenders, etc. Save your condemnation for those who truly deserve it in this game, and stay focused on spreading the knowledge to help those in need, and level the real estate playing field.

(Image courtesy of Rescue Mission.)

Posted at July 3, 2006 03:41 PM

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Patrick.net pointed me to this article from the San Jose Mercury News on the increasing pain of homeowners as mortgage rates rise. While this is depressing in and of itself, I wanted to address the attitude a good number of housing blog commenters (and some writers) take towards people who find themselves in this position. The consensus often seems to be that they deserve what they get for taking such a risk, and that they should have educated themselves financially. They get called "FBs" (as in "F$%ed borrowers"), "homedebtors," and all manner of fun things. The tone is often dismissive, condescending, and downright mean. I don't think this is fair. Does America's savings rate suck? Absolutely. Do we lack basic financial education? Absolutely? Should parents, schools, and the workplace teach people the necessary knowledge to buy homes, invest smartly, etc.? No doubt. What you have to remember is that the system is gamed to play on people's ignorance. Credit cards, "creative mortgage," unscrupulous auto lenders, etc.--these are all built to screw you if you don't know what to do. And many people simply don't have the time to find the knowledge they need to make smart decisions. They have families to raise, bills to pay, etc. And--let's be blunt--not everyone is an MBA or financial wizard. Should we then say that you don't deserve to own a home if you don't pay micro-level attention to gold futures or derivatives? I know that I, as a neophyte housing blogger, learned much of the game from reading the works of everyone from David to Ben Jones to Tim Iacono. The knowledge is out there for everyone to take advantage of, but it's still an uphill battle against a complacent media and the publicity machine of the realtor and financial industries. Shocker of shockers, the blogosphere is not the be-all and end-all. You shouldn't buy a home if you don't have all the facts at hand and haven't done all your research. By the same token, you shouldn't scorn and dismiss people who got scammed by flippers, shady lenders, etc. Save your condemnation for those who truly deserve it in this game, and stay focused on spreading the knowledge to help those in need, and level the real estate playing field. (Image courtesy of Rescue Mission.)