Quote Originally Posted by villanelle View Post
Those flippers only had their industry because there was so much money for people to use to buy homes. The article makes it seem like these are separate causes/conditions, but they are inherently related.
Ba-Da-Bing!

When I first started teaching after getting my master's degree, my SiL thought it a good idea that I go to my bank and see what kind of mortgage they would extend to me so that I would have an idea of what I should be looking for in a house. They said they would approve me for thirteen hundred and change a month which, at the beginning of my teaching career, represented a lot of money.

I remember thinking, "If I eat hotdogs and white bread, buy nothing outside of bare necessities, and limit my driving to save on gas, I might barely survive with a mortgage like that." The thing is, what happens when something inevitably goes wrong? The roof leaks, or the water heater breaks, or the furnace goes, or .........!

I think that's what happened to a lot of people. Because they wanted a home so badly, they accepted mortgages that stretched them too thin. Then things happened. Then, to survive, they refinanced and got farther into debt. It's a vicious cycle that has only one inevitable end.