The Seattle Times: Borrower, beware: Debt disaster looms as rates rise on easy-money mortgages
But when the couple — with no savings and about $20,000 in credit-card debt — shopped for a mortgage to buy their 1,200-square-foot house in Tukwila last year, they heard the same thing from lenders and in a home-buying class they attended: Forget it.
“You basically had to be Scot free, no massive credit debt, which we had, and to have money in the bank, which we didn’t,” said Swartz, 31. “How do people buy houses in America anymore?”
I agree. Our politicians and lenders are doing exactly what the terrorists would want us to do: stop good, hard working from owning homes.
Fortunately, this article is about Seattle, but this could easily happen in your neighborhood! We must find a way to help people who have no assets and lots of debt buy homes – freedom, justice, and our very way of life is at stake here!
Erin Rearden, a mortgage counselor at Solid Ground, a nonprofit social-service agency in Seattle, said the deal Fultz and Swartz struck is typical, especially as the cost of housing skyrockets out of reach for so many.
“They wanted a home. And a lot of this comes from operating under the assumption that owning a home is an inherent American right. So when someone offers a way to do it, you want to go for it,” she said.
Owning a home is an inherent American right. Period. Full stop. If you’re not helping people own a home, you’re helping the terrorists who hate our values. Are you with us? Or are you against us?
That said, there is something strange about this story:
Fultz makes $12.75 a hour driving a fish-food delivery truck. He recently paid off half of the 12 credit cards he used in buying a motorcycle, a couch and a television, going out to eat, “just buying stuff,” Fultz said. “I had no idea this credit-card debt was going to have such huge repercussions.”
Swartz was working at an insurance office, where she made $11.75 an hour.
After so much discouragement, Fultz said he found Kathy Mills at Gold Mortgage helpful and friendly. She drove over to pick up Fultz, who didn’t have a car at the time, to get the paperwork started. When the couple went on vacation in New Jersey, Mills dispatched a notary locally to get papers signed to keep the deal moving.
They went on vacation to New Jersey? Where did they go? Atlantic City?
Finally, my favorite part of this article:
“I didn’t make my own mortgage payment this month,” Mills said in April. “But nobody feels sorry for me.”
That’s right. The mortgage broker.