Why Financial Literacy and Foreclosures Should Be Compared To Driving Without A License

Time and time again, people are losing their homes and sometimes families over financial problems. The biggest example of this can be seen in this huge epidemic of home foreclosures. Have you stopped and wondered why lenders did not require borrowers to be educated about the lending and home buying process?
Everyone knows that you cannot just buy a car without having a valid driver’s license and if you happen to slip through the cracks and buy a car without one, then you are not authorized to drive it on our roads. Your driver’s license is proof that you were no just educated but understood the rules and regulations Fastest Payday Loans of your State’s driving laws. In no shape or form are we as citizens or law makers willing to permit ignorant drivers on our streets to hurt innocent people with reckless behavior, yet that is exactly what happened in the housing market when people were approved for loans without proper education!
Some people were lucky enough to go through a home buying program or workshop. But the majority of borrowers were not mandated to do so, getting loans and being thrown in a system that has legal and financial consequences should not have been taken lightly. I’m sure that most if not all of the people that participated in these programs will now express true gratitude to these organizations. Although I am sure they were at times consuming and overwhelming it gave “pre-borrowers” a chance to ask questions and to do some much needed research before jumping into what can be viewed as the biggest purchase of their lives.
Lenders and Regulators have argued that it is the borrower’s responsibility to gain the knowledge needed to participate in this complicated process. However just like in a court proceeding when ask if you can afford an attorney, the remaining Selling Examples statement is, “if you can’t AFFORD one, one will be PROVIDED. Sounds familiar? In my particular state, all home closings are done in an Attorney’s office, where the lender is represented not the borrower. How convenient and unbalanced.
The minimum requirement with ANY financial transaction should be proof of a basic financial education. This document should read, I have passed a basic financial literacy class in car buying or home buying etc. and thus understand the aspects of this financial obligation. Otherwise in my humble opinion the transaction should not take place. Do you agree or disagree?

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