sundrenched

5-1/2 Ways to Make the Market Rally

"we have bubble in real estate prices. they have over run the buyers ability to pay, and streaked ahead of the cost to rent. "

I agree with that, but was anyone pointing a gun at their head when they signed on the dotted line? As a matter of fact, I walked away from a 160k a year job in DC in 2004 because I felt the real estate market had escaped beyond my reach, and I didn't want to become an endentured mortgage slave. At the time I was wondering how everyone else was making that kind of money and what I had done wrong. Turns out most were biting off more than they could chew. So well, let them chew it anyhow. If they really can't make the payment on their 20-year mortgage, make them take a 30 or 40-year mortgage. They agreed to buy, and now they shouldn't be able to walk away.