Who wouldn't want their own home?

As I see an increasing numbers of mortgage foreclosures and newly homeless families, I become nostalgic about the experience my husband and I faced as we bought our first house in 1971.

The price was $29,000, causing relatives to tell us we were getting in over our heads. We were required to put down 20 percent of the purchase price and those funds had to come from savings, not gifts or loans.

We qualified, and we lived in that house for 10 years, raising our two daughters, and realized a 200 percent profit when we sold in 1981.

During the last decade, I have watched the standards for home mortgages change. Buyers have assumed mortgages for 100 percent of the purchase price with credit histories and income standards often juggled by lenders to assure qualification.

Adjustable rate mortgages gave borrowers an initial false sense that they could afford the monthly payment. An upward adjustment of the interest rate caused many to eventually default.

Home ownership is truly the American dream. An increase in the value of that home is the only hope many of us have to amass wealth. This heady dream of stability and financial gain can make prospective borrowers vulnerable to misrepresentations and pressure from over-enthusiastic lenders.

We can beat the drum of personal responsibility until our ears hurt, but those with money and power will always be able to manipulate those who have more aspiration than resources.

Government has a role to play in protecting citizens from others and from themselves. Billions of dollars are being given to huge investment houses to prevent them from closing the doors on their businesses. Average Americans deserve the same consideration as they struggle to keep from closing the doors on their futures.

Regulations need to be developed for lenders and borrowers alike. Government does its best work when it is able to protect business and the citizenry from each other.

Karen Wagner

Rolling Meadows