WHAT HAS HAPPENED TO THE AMERICAN DREAM?

Owning you own home or more accurately, owning your own piece of land has been the American Dream since the colonial days. There were once some assumptions connected with that dream, and the most prevalent assumption was that the dream was achievable with hard work and perseverance. In recent years, we have distorted the American Dream to mean that everyone deserves to own their own home. Politicians got involved and have caused the dream to move out of the reach of many who actually deserve the peace of mind and confidence that owning your own little piece of dirt brings. How did politicians do it this time? They actually worked very hard at it. First, Congress decided that home ownership was a right that should be shared by all and mandated that lending institutions make a percentage of home loans to buyers with little money, little credit and little probability of being able to repay the loans. Second, Congress changed FHA and other government regulations to allow sellers to pay all of the buyer’s closing costs through a system of mock charities. The net result was that a lot of bad debt was created. The story continues with the long tale of lenders who took advantage, developed a lot of false mortgage products and undermined the world financial market, and it was all because of the American Dream and our dedication to it. So where are we now? I am proud to say that the dream is alive and well. It has once again become harder to achieve, but it is still there deeply imbedded in the fabric of life in the U.S. The rules have changed once again. Typically, in order to buy, you need to have a small amount of money, you need to have a way to make the payments, and you must have established yourself as a responsible citizen by paying your debts on time and living up to your obligations. For those of you who thought that you deserved a home of your own simply because you live in America and for those of you who wish to give homes to those who think this way, the American Dream is dead, almost. I suspect that our politicians will soon find a way to resuscitate even this misguided ambition, so keep your eyes open and grab the brass ring when it comes around. You may not deserve it, but I cannot blame anyone for taking what is handed to them on a silver platter as the saying goes.

I will be glad to receive your comments on my opinion. Just send an e-mail to ask@capitolarearealty.com .