A Person's Home is His/Her Castle

Too many people are losing those castles these days.

We've all heard the news reports about the housing bubble and the housing crisis. Several investment firms on Wall Street have dumped their CEOs for investing in sub-prime loans. Foreclosures are up in some places by as much as 30%. People are beginning to look at some of the predatory loan practices of companies that talk poor and lower middle class people into interest-only loans and/or ARM loans with the promise that "oh, no big deal. You can get a regular mortgage in a year--long before the balloon payment comes due/interest rate triples." and then, those folks can't get a regular mortgage and the balloon payment comes due or the interest rate triples and they can't pay and they lose their home.

It seems so huge, yet strangely for those of us who aren't home owners or who have more traditional mortgages, somehow remote. Until, that is, it happens to someone we love.

I lost my home this past summer. I've Been Told that I have to tell this story before I can post another blog for y'all, and the stomach-rattling humiliation's almost dissipated, so I'm gonna quit stalling.

The short version of the story (the version I've been giving squeamish friends) is that my experience with mortgaging, refinancing, and foreclosure began with stark ignorance and ended with stupidity.

The slightly longer version is that, because of my (poor) credit, when I wanted to refinance my home at a particular time, I allowed myself to be talked into an interest-only loan. And then when, because of my (better) credit, I was able to apply for an FHA loan, I allowed myself to be talked into an ARM.

As Ms. Gine would say, pray for a sister.