Compassion

Bob was working in California last week and spent some time with the management of a facility in Union City near San Jose. He told me he feels sorry for folks out there regarding real estate.

One person bought their first home 2 years ago. It's a modest home that needs fixing and updating. They paid $900,000 for it.

Now their new home is valued at just $700,000. As interest rates are going down, with their home value below what they owe for it, they can not refinance to take advantage of the new rates. Their only available option is to wait for the adjustment on their ARM (adjusted rate mortgage).

Make those larger payments or loose their home.

Bob and I had several discussions. What's the answer for these folks and others in similar situations? Who's at fault?

It's not fair for the government to bail everyone out. It's probably better in the long run for mortgage carriers to suffer in that they took that "bet." We all remember all those ads for zero down, interest only, and take out all your home equity.

Scenarios like those of the Californian and the foreclosure rumored to be underway in Marny's neighborhood make me think of stories of the Great Depression that my parents and grandparents relayed.

Let's pray for wisdom.

'til later