ArnoldCountry

Personal Responsibility and the Housing Bubble

At first, when I read this article, I thought it was a humorous piece, then I realize it is not. Being serious, I will address it. No question, it would be a better world if consumers were more educated on their finances and were given specific education in our schools regarding budget management and balancing their checkbook, but they dont. It would also be better that consumers should reject the closing pressure of being given a stack of legal documents an inch thick and given one hour to sign them. But they dont. It would also be better if the "educated" professionals around the consumers in the transaction, i.e. real estate agents, closers, mortgage brokers, lenders, explained the risks of what they are signing better. But they dont.

The entire gammit of consumer laws have been put in place because consumers are easy targets. Real Estate and Mortgage documents are way more complex than car documents or many other contracts yet consumer protections are required for those.

Buyer beware is alive and well. The first advice to all consumers based on this type of article is... do not trust anyone in the transaction, they are not protecting you.

Second advice, take all of your documents at a closing, do not sign them, take them home and read them for the several days it will take to understand them.

Third advice, all consumers should be required to take a debt counseling course BEFORE they buy to educate them on the pitfalls of the transaction.

Fourth advice, all consumers should be required to have the transaction reviewed by an independent party to advise them of all the negative aspects of the transaction.

That should get personal responsibility addressed properly and put a halt to this problem. Also will slow down transactions incredibly and more important... cause more than 50% of the transactions to be rejected.

Remember, the golden rule, he who has the gold makes the rules... the rules by real estate folks, mortgage brokers and lenders were bad. Personal responsibility would not be a discussion if they could not get those loans in the first place.