Reply to What I don't get: When people complain that they are drowning because their house is underwater

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[quote=Anonymous]Not sure when the last time you bought a house was, but when we bought in 2004, most of the professional advice was to buy as much house as you could afford, and to use something like a 5-year ARM in order to stretch further.  Then if you were still going to be in the house, you could refinance later with the equity you'd inevitably make on the increase in value.  In retrospect was that bad advice?  Yes.  But housing bears were few and far between back then.

We bought a house we could easily make monthly payments on, and we financed with a 30 year fixed.  If I had had a crystal ball back in 2003, I would have bought double the house we did buy (on the Hill).  We'd have a bigger house and even more equity.  If I'd followed that advice in 2006-2007, in Manassass, we'd be massively underwater and part of the problem.

It's very, very easy to second-guess people's choices when things go wrong, with the benefit of hindsight.

As far as professional malpractice goes:  we have a home mortgage industry because they provide the positive benefit of using their expertise to mitigate risk.   That they failed so spectacularly at that *is* evidence of professional malpractice.[/quote]

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