Maybe I do have a bit of that optimist gene, but I think most people bought more than they could afford believing the lines the realtors fed them that their income and home value could only go up, and they would afford it one day. Sure, they should have known better, but they wanted to believe in the American Dream.

Having said that, I’m so mad that people who were irresponsible, overly naieve, and even outright dishonest, are getting better mortgage rates than me. Why should I be responsible when the irresponsible are always bailed out? I have asked myself this question many times in a familial context. Ahem.

To help surpress my anger, I consider this: if my neighbor smokes in bed and sets his/her house on fire, do I let the house burn down to punish them for their stupidity, and take the chance that my house will burn down as well? No, I think that would be stupid.

@Cheri: I DO know you and didn’t think you meant anything by your initial comment but the tone wasn’t clear. Please don’t feel bad. You clarified what you meant and I sort of thought that might have been what you were aiming for.

@s and Ayman: You both make some good points. A large down payment on an expensive home should be what happens. And yes, anyone—wealthy or otherwise—could be in a “financial pickle.” In fact, many are. And while I agree that there is a lot of personal responsibility involved in what’s happened here, there has also been a lot of unscrupulous predation and this is where I find it difficult to feel as badly for the man in the NYTimes article as I do for the guy who had nothing until he he received a visit from a mortgage broker telling him that in the current housing boom, he, too could have a slice of the American dream.

Not everyone is educated enough to understand what a No-Interest, No-Asset (NINA) loan really meant. And while there are many people who knew they were getting in over their heads, there were others who thought they had a ticket to something stable. If you have nothing and someone offers you a home—the quintessential definition of stability and success—then it’s likely you’re going to jump at it.

It’s just easier for me to feel sorry for the guy who got duped or the guy who works three jobs and can’t make ends meet than it is for me to feel sorry for this guy. Like I said before, if he had a 4K mortgage for only one year, then he must have had some sort of adjustable rate mortgage and was gambling. He was the educated one, living his life in a manner similar to that of the people to whom he sold cars. He had the money and he chose to take the risk. And now he’s on the homepage of the Times. I just couldn’t help but roll my eyes. (Incidentally, I’m personally very tired of hearing people say that “nobody saw this coming.” If you were at all following the news, it was clear that it was coming and that it was going to be big. People just didn’t want to believe it.)

To be clear, I’m not saying I’m right, here. This is a really tough issue. Like Jenn said above, I am willing to be part of the solution because it hurts everyone to have homes foreclose and surrounding property devalued. People are desperate and that leads to desperate behaviors. We’re all in this together. But this particular example is just a little bit offensive to me.

For anyone who has an hour of down time, I recommend you listen to The Giant Pool of Money. It was produced in March of 2008, before the housing bubble burst and will give you the devastating picture of what greedy bankers and investors and mortgage brokers did to people. It might sound boring but it’s not. I promise.

There’s also a follow-up, Bad Bank, that ran last week. I haven’t listened to it yet, but I’m sure it’s great in a depressing, drink-vodka-straight-from-the-bottle kind of way.

What I meant by my apparently not funny sweeping generalization was only that it seemed that his wife didn’t agree with his decision making. That’s really all that I meant.

Aaryn, I gave you a response that was intended to be taken lightly (it wasn’t, my bad), when what you asked for was discussion and thoughts.

So, my thoughts. Pretty much in line with yours. I think it is a bummer in many ways for those of us who live within our means, have no consumer debt and equity in our houses, and who pay our taxes have to pick up the slack for those who don’t or can’t for whatever reason. But, of course, like you, I’m willing to be part of the solution. It is bigger bummer when I’m part of the solution for someone who did more consuming than contributing in this world.

Finally, I don’t know who Robert is, and he doesn’t know me. (And apparently doesn’t like what I said, or that I said it, and, again, I’m sorry.) But, Aaryn, you know me. I’ve been reading your work before CityBeat, since the first inception of your blog, when it was RubySoho, three years or more ago. You said you weren’t clear about the intent of my comment, but I’m sad to think that you thought that I ascribed particular meaning to them going to Beirut, if you did.

I have read all of your comments. I can understand many of the points that you are making. However, one part that I can’t make sense off is why are you attacking this guy personally? Perhaps when he bought his house in 2005, he was making the enough money to afford it. We all know now that the industry that he is in is not doing well at all. Who is to be blamed for the fall of the car business? Him? I don’t think so.

The fact that he is still in his house means that he is still fighting to stay in it. The fact that he is asking for a modification that results in lowering the interest rate and extending the term is a very valid and reasonable request. He is not asking for the reduction of the balance or the use of tax payers’ money. What I understand from the article that he is asking the lender to reduce his monthly payments for couple years until his industry revives again.

Also, some of you mentioned that he should move to a less home. Well, that sounds like a great idea. However, how do you expect him to do so? If he owes double on this house, then obviously he can neither sell it nor can he refinance it. In addition, I can bet that half of the people here did not expect that all of us would be here today couple years ago. Now that we are passing through this time, many people became financial experts all of a sudden. Everyone is capable of offering sound financial advises today.

The American dream is a right for all Americans. I feel that it is really rude and disgusting that many of you is sitting out there and judging this guy that perhaps started from nothing and got all this and now he is the verge of losing it all again. I also don’t understand why you are complaining that he put such a large down payment. Isn’t it the right thing to do? Putting 25% of the loan is what everyone should do. I actually blame all of those speculators that bought homes with nothing down because they are one of the main reasons that brought us here today. Thos speculators are what made Mr. Moussa reach such a place because otherwise his house value wouldn’t have dropped so much.

PS: the comment about his family and them leaving to Beirut is totally absurd and offensive.

I will say, upon reading the article, that some of the statements about the logistics of the situation–the bank not being able to recoup its cost if it forecloses, etc. make some sense. It would be better for all of us if the lenders started operating with some common sense.

I don’t understand why people need to live so high on the hog though–there was a time (before the stock market crash) when I too could have had a million dollar plus home. But why?

Again, I apologize.

I took the time to read Buying a House for Dummies before I bought my first home, and I knew an adjustable rate mortgage or a balloon payment or an interest only loan was a bad idea BEFORE the economy turned crappy.

I bought a house I could afford with guaranteed payments I could afford, and I have to pay to get them out from under bad decisions?

And I keep hearing economists say its better for the economy to keep these people in their homes paying their mortgages even if we carry them for a while or renegotiate for them. OK then, when this us all fixed and everyone is stable again, I want MY slice.

Cash will be fine.