Off The Cuff

History Repeats Itself…If We Do Not Learn

Posted by: From Arkansas in Are You Kidding Me?, Credit and credit cards on Feb 29 2008

Welcome back!

For those of you who have no clue about history, we are doomed to repeat past mistakes since we certainly have not learned a thing about it. When the crash of ‘29 hit on Black Tuesday, people were in a panic. There were suicides aplenty. Lots of people who otherwise would have been sensible were out of their minds. Not much was accomplished to stop the downward slide.

In the months and years afterwards, too many families lost their homes and livelihoods because they did not have the money to pay for the land and home. Now, we are in a similar situation. Banks and lending companies are seeing bigger problems with foreclosures. Seems that people made the mistake of betting on the interest rates going down and staying there. Instead what they got were rising rates. With a fixed rate mortgage, this is not a real threat but with a variable rate, it can be disaster. That is what many, many families and homeowners are facing now. And with home mortgage payments that are sky high, it feels like there cannot be a solution.

But now what??? This is like history repeating itself in that when the families are out of their homes, they must find other places to go. Many of these people have already given up on trying to save the home place. Now they are sinking their money into car payments and credit card bills since they feel they can’t pay on the mortgage.

Is that a good idea? Not really. Yes, it is easy for me to say that when I do not have a mortgage payment in arrears. In the long run, the borrower is going to feel it because they may never be able to have their own home again. They will take a major hit on their credit.

Perhaps now would be a good time to seek out your lender and see what avenues you still have available before you throw in the towel. Banks and lenders do not want your house. If they have it, it costs too much money to foreclose and to find someone else to buy it so they can get their money out of the deal. So, it would be up to the borrower to seek them out for other options. Don’t give up just because it looks like the world is coming to an end. It hasn’t yet. Seek the Lord first, then your lender to get options. It just might be worth the call…in both cases!!!

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