When I was first involved in buying a personal home, some 20 years ago, I distinctly remember the realtor telling me that adjustable-rate mortgages (ARMs) were bad news despite their outwardly-attractive facade. (I don’t believe sub-prime loans even existed then.)
Now cue up a story like this one. Would-be home buyers, attracted by the “pay-a-little-now-pay-more-later” siren song of ARMs and subprime loans, got in over their heads.
Worldly folk should have known better, period.
Even those less worldly buyers, who were sucked in by unscrupulous realtors and even less scrupulous mortgage houses, have no excuse for not questioning the wisdom of taking out loans that had even the possibility of causing financial ruin.
In most cases, those who wail and gnash their teeth about home foreclosures and resultant bankruptcies have no one but themselves to blame.
