Something I could NOT understand is why any lender would make loans to people that clearly they could not afford?
Basically most of these people's money was going to pay their mortgage payment. And there was just barely enough money left over each month for anything else.
If their car broke and they needed a $300 repair, they did not have the extra money!
Then on top of this they gave them loans with balloon payments - say $10,000. These people are NEVER going to have that kind of money, especially with most of their income going for mortgage and other bills.
And these people bought the most expensive homes the lenders would allow. The home buyers skipped over less expensive homes they could have more easily afforded.
Seems to me the lenders should take other expenses into account. And tell people they need to find a less expensive house if they want to buy. (If the people are too dumb to do this themselves.)
