
I'm not proud to admit it. But there have been times in my adult life when my wife and I chose to visit a cash advance store. Not to gamble or buy drugs or pay for new anythings. Usually, just to make ends meet during a cash-flow crisis.
Why do I feel a stigma? Because I was stupid enough to chose a lender that charged me 50 or 60 cents on the dollar for a quick financial fix. Truth is, I could have sold something. Or I could have borrowed the cash from someone who cares about our family. (Believe it or not, they
are out there.) They would have lent us the money in a second -- and probably without asking us to pay it back. Alas, pride was involved. So we sucked it up, signed the papers...and paid for it for some time out of our newly married wazoos. You see, cash advances are like bad credit card deals -- they're deep financial holes that only get deeper the more you try to dig yourself out.
Which brings me to the so-called Peoria Housing Authority (PHA) lending scandal Bill Dennis is
raving about.
Says this
article by PJStar reporter, Elaine Hopkins:
"Being a first-time buyer, I did not know a whole lot. I trusted them," Alexander said of the PHA.
Alexander said he did not even know he signed documents for two mortgage loans instead of one on his $65,000 home.
He now pays a total of $638 monthly on the two mortgages, an amount that includes taxes and insurance, he said. PHA pays a $63 monthly subsidy toward his mortgages, he said.
At the real estate closing, he was handed many documents and signed them, he said. A PHA employee at the closing never spoke up, he said.

This smells, alright. But what's stinking up the place is the acrid stench of entitlements. (As well as Hopkins overuse of the phrase "he said". But I'll save that for another time.)
To summarize: this guy relied on the government to help him get his home. He then depended on them to read and understand his paperwork for him, and he didn't even take the time to figure out he was getting TWO freaking loans in the process! All of that, and PHA is still paying 10% of the guys monthly payment.
Methinks nobody held a gun to any of these people's heads. They wanted homes badly enough to take on not-so-favorable lending terms -- probably the only kind of loans they could get with poor credit, low incomes, etc. But why didn't they even bother to look through their own paperwork. WHY? Because we've been trained by our society that we do not have to take care of our own affairs. We have the government to do it for us! They feed us, clothe us, insure us, treat our wounds and sicknesses and especially protect us from the big bad corporations that are always trying to exploit us. And when the government doesn't do any of those things? It's Katie bar the door.
Truth is, if you want something badly enough, you pay more for it. I've seen little old ladies cash in their state checks at the river boat. The just HAD to have their nickel slots. These people just HAD to have homes. I just HAD to have instant cash -- and we all damned the consequences. Our choice. Our consequences. But to claim ignorance?
You have to sign an inch-high stack of documents to buy a home, telling you exactly how much you have to pay, when, and what it's really going to cost you in the end.
Don't get me wrong here. I'm not advocating the behavior of these businesses. These loans feel like a slimy way to make a buck to me...just like the slots and the cash stores. But making these buyers seem like naifs and victims is ridiculous.
If there is one rule of life in this country, it's Buyer Beware.
But maybe there's a greater problem in this case. The buyer didn't actually
realize he was a buyer. Maybe he thought this was another hand-out; that he was receiving another gift (that was his RIGHT!) from yet another social service agency. Maybe he
is a victim. Not of predatory lending, though. But rather he is a victim of a government struggling to find itself through the haze of Multiple Personality Disorder -- trying to decide if it is, in fact, based on the tenets of democracy and the free market...or based only on the tenets of a watered-down socialism...as if France is such a success.
I say we keep the system we've got, thanks. But with
me ultimately responsible for my own financial decisions..and Mr. Alexander responsible for his.