© Sam Diephuis/zefa/Corbis
Almost anyone who reads the news or watches TV knows the past few weeks have been ugly for the financial sector. People have seen their net worth nosedive and their retirement plans put in jeopardy. Much of the pain is felt in the housing sector, where loans are increasingly tough to get and many home owners are facing ballooning payments.
MSN Real Estate reached out to readers asking how the financial crisis has touched their lives. Various readers related their struggles with the housing market downturn, but the No. 1 sentiment expressed was anger that the recently passed bailout package was more about saving Wall Street than Main Street.
Many are upset at the idea that such a large amount of money — $700 billion — will be used to bail out the very people whose greed and predatory practices reportedly caused the crisis in the first place.
Some readers advocate going on a cash diet and learning to live within their means instead of living on credit. One reader says this is all part of a normal cycle for the free market and is confident that America will have no trouble "making it through this period just as we always have."
Here are a few excerpts (edited for grammar and clarity):
Where’s the justice?
"We are all affected by the housing downturn. I think the loans were put out by people without a conscience and taken by people who were financially ignorant. The people that made the loans were rewarded financially and the ignorant people who took out loans (that no logical person would have undertaken) got to live above their means for a short period of time! Now everyone wants the government to bail them out!!! I work hard, bought less than I could afford, spent weekends fixing my home, and now my retirement funds are in major jeopardy! Now I'm supposed to help bail everybody else out! Where's the justice?" — cbeagle
Need fixed rate
"I recently tried to refinance my property. Unfortunately the appraisal for the home did not come in high enough because of the recent market slump. I'm currently in an Adjustable Rate Mortgage that is about to skyrocket. I got into the loan two years ago thinking no problem, I'll just refinance before the rate increases…good luck with that now! My property (appraisal) came in $20,000 less than what I bought it for. What happened to the days when a new homeowner could say that buying the house was the best investment they ever made. When will the government get involved with these financing companies and say that they must approve us for what we currently owe. Even if at a higher rate. All I want is a fixed rate." — beachman32137
Feeling lost
"We have an ARM loan which already started resetting. We owe $300K on our house and it's worth $145K. I really don't know what to do..."— SDHomeOwner
Will the government bail me out?
"I look forward to the day where subprime lending becomes illegal and obsolete. It is pathetic that the government has to step in and regulate these greedy lenders. The government should not bail these lenders out for bad loans they made that they knew was ultra risky to begin with. The government is not going to bail me out if I have to go bankrupt because of my bad financial decision making, why should it be any different for these lenders. There is no shame in renting until one is financially set to buy a house. I just hope these lenders and the government learned a great lesson on the housing mess and put in safeguards so it does not happen again." — shibemw
No way out
"If you can sell any real estate now, get out of it as fast as possible. This bailout is just scooping water out of the boat that will come right back in." — soflodoug
Liquid cash is best
"I'm a first time homebuyer but not getting any younger to be able to lose the money invested. As I see it, real estate won't have appreciation even in the next 10 years, therefore if you are making $5,000 mortgage a month, in 10 years you're not going to be able to realize your investment if you sell your property. While if you religiously deposit $5,000 a month, you may have at least $600,000 before any interest and this makes me think of giving up my property for liquid cash in the future. During the time of depression, people would rather have cash. I really don't care anymore about my credit standing but I want to be smarter with my investment." — cottagePerris2052
Back to renting
"As a first time homebuyer I bought a new construction condo here in southern New Hampshire in Sept.2005. I had no idea at that time just how costly home ownership was going to be. During my first year my property taxes increased by $300 per year, my condo fee went up by $50 per month and other related expenses increased, as well. This occurred all in the first year of owning the condo! How can you foresee such immediate increases? Sadly, I can rent an identical condo unit in my complex for $500 a month less than it cost to own the same unit." — leejay1964
Iron stomach
"It's an opportunity for me to acquire a piece of real estate in the best neighborhood in San Diego. Before the crisis, it was unimaginable to be able to do this. Now it's possible. This is an investment that has many risks but I do believe that with a long enough horizon, the markets will recover. My (husband) and I are lucky that although we have a paper loss on one property, other paper losses with stocks, we are not upside down on any loans and we have sufficient cash reserves. It just takes an iron stomach to get through the market news and not panic and want to sell everything and put the money under the mattress." — Carefreeap
