90 year old shoots self in lieu of foreclosure

[vegasX5]

http://www.cnn.com/2008/US/10/03/evi...mpt/index.html

Quick summary - 90 year old woman is being evicted from her home as a result of foreclosure. Rather than be forced out of her home, she attempts suicide. Politicians use this example as fodder for how people like her aren't getting the help they need.

Ok now to put the flame suit on - if you read a little bit down in the story, you will read that she has lived in the home since 1970. She took out a mortgage and a line of credit in 2004!!!! She lived in a home for 38 years, and took out a mortgage for it just 4 years ago. Now, I'm sure people will defend her as a victim of the current mortgage crisis, which she may very well be because of her age and vulnerability, but what in the hell is someone thinking that takes out a mortgage after owning their home for 34 years? The reason why is because they could. Easy money was the enticement for millions upon millions of homeowners when it clearly was not in their best interest to do so. At some point, people have got to realize that no one truly forced anyone's hand to sign on the dotted line for things they couldn't afford - it was driven by those person's own motives. On this particular note, the payment was only roughly $284 and she clearly defaulted on it. If she knew, the lender knew and everyone involved knew (which they absolutely had to have known) she couldn't afford $284 a month, the loan should not have happened!!

Now, don't get me wrong - I do empathize for this poor woman. She likely did not understand the full ramifications of her actions at the age of 86. But rather than being an example of the "poor average Joe" who was taken advantage of, this should serve as an example of the absolute absurdity and senselessness that millions of Americans have displayed in the last few years using their homes as ATMs.

[martinbaltes]

freedom can be a dangerous thing.

[PersonaNonGrata]

I agree with you that this is an extreme example and this lady was probably duped into it without full disclosure by a predatory lender. 86 doesn't make someone mentally incapacitated but in her case her age might have played a part, rendering her more vulnerable to a fast talking mortgage broker. (What's with these "reverse mortgages" anyway???)

Your premise is what I agree with. Aside from this extreme example which is an easy one to use as a "for instance", most cases are exactly what you suggest. People got greedy. Banks/lenders/brokers were more than happy to lend whether or not the person could afford it. Home owners did just what you stated: they used their homes as an ATM. Both are at fault.

It just burns me up that the politicians on both sides are crying rivers for the average idiot who got themselves into their own mortgage mess. Whether the lenders were predatory or not, we are presumed to be responsible for ourselves and able to make good decisions. Unfortunately, that is not true for too many people and we wind up with a catastrophe like we have now.

[vegasX5]

Here's the other kicker - the lender upon hearing of this incident, signed over the house to her and forgave the loan.

That's sweet, but... think about all the morons out there that were dumb enough to get themselves into the trouble they're in... think about how desperate many of them have become... do you see any likelihood that upon hearing about this story they may try to "attempt suicide" to get their lenders to forgive their loan? We can seriously never underestimate the absurdity and stupidity of some people...

[blondboinsd]

Originally Posted by vegasX5

Here's the other kicker - the lender upon hearing of this incident, signed over the house to her and forgave the loan.

That's sweet, but... think about all the morons out there that were dumb enough to get themselves into the trouble they're in... think about how desperate many of them have become... do you see any likelihood that upon hearing about this story they may try to "attempt suicide" to get their lenders to forgive their loan? We can seriously never underestimate the absurdity and stupidity of some people...

Sweet! What areas of my body can I shoot and recover from? I want no Condo Payment!

[Krimson X]

When I heard this story my immediate thought was that she was preyed upon by greedy commissioned lenders looking for an easy target. Boiler Room, anyone?

Let me throw out this hypothet:


You are living in a house with no mortgage, and living on a fixed income. You are, for lack of a better term, house rich and cash poor. You are presented with an offer, thru cold calling, saying let us free up some of your cash in the home. You think to yourself, well, it is my money... I've got bills... prescriptions to be filled... doctor visits and healthcare, and anyway... its my money. You have no one you trust to help you understand the terms and guide you in making the decision. What do you do? Now imagine you are 86 years old... I doubt the lender bothered to explain the details.

IMO, this lady's scenario is unique and stands on its own.

[Quicksilver]

We're you looking for a suggestion......... .....

Originally Posted by blondboinsd

Sweet! What areas of my body can I shoot and recover from? I want no Condo Payment!