Big House Confusion
Written by Confusion support on December 28, 2007 – 12:47 pm -
I live in south central Pennsylvania, which is what I consider an average cost-of-living area in the USA. I can’t understand why the majority of housing developments (sub-divisions) being built in my area consist of homes $300,000 and above! Who is buying these!? Are that many people really making that much money!? And if they aren’t, what idiotic lender is lending them that much!?
Truthfully, I am completely at a loss to explain how this many $300,000+ houses are being built and sold. I don’t have a bad salary and I have an above average education (according to statistics). Yet, I am no where near being able to afford a house at that cost (and I’ve been employed 23 years). The vast majority of people I know can’t afford a home of that cost either.
What industry are all these people, buying these homes, working in? If I were to guess, I would say health care, financial or insurance! Or have they all inherited money? I really am completely baffled as to how this many houses of that cost are being sold!
Anyone have any explanations?
Posted in Uncategorized |
January 14th, 2008 at 3:30 pm
These are individuals who the lending institutions loaned money that would’ve otherwise borrowed from some other institution. Unfortunately, if they get into trouble financially then they simply pay the interest on the mortgage and tag the unpaid balance onto the end of the loan. You and I as customers of that lending institution pay the price/cost for those individuals defaulting on the mortgage. It was stated that the average foreclosure costs a bank $60,000; therefore, the bank doesn’t want the house so these people get to live in their huge homes at our expense. Foreclosing on a poor working man’s house of $150,000 will be done within hours because of the minimal foreclosure costs and resale value.