God Bless America??
11-10-2009, 10:03 PM
#17
Old School
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iTrader: (6)
Join Date: Jan 2001
Location: Union City
Posts: 14,983
Car Info: '99 RBP GM6
Yep, my in-laws just moved due to this same kind of issue.
They bought a house for $200k in Stockton. Initial loan was nice and sane and affordable for them. Then her dad starts talking to people at work who were all riding the wave and re-financing to take equity out of their houses that had bumped up in value to 300k+.
For some reason they thinks it's a good idea to do the same thing without consulting their only financially responsible child or her husband. They pulled out 80k more, then have this option ARM loan where they are paying less than principal and interest. Meanwhile 80k is enough to get them used to a standard of living they can't sustain even before the payments baloon at the end of their fixed rate period.
I have no clue they've done this until they owe $380k on their house (after the bust, when they're struggling to make payments. The house was worth like $150k tops and their payment balooned to nearly $3k.) I'm not sure what they wanted us to help with, nobody can spare $1500 a month for 25 years to make up for them being totally irresponsible for 3 or 4 years. So they either foreclosed or made a short-sale, not sure which.
You wanna know why the economy hit the crapper? People charging up a storm who can't afford it is a drop in the bucket compared to people who got into loans they KNEW they couldn't afford once the fixed interest period was up.
The thing that really cheeses me is they're completely free of it now. They were able to just kinda walk away from being responsible for almost a quarter million dollars in losses. Sure they had to move and rent and won't own a house again ever. But now that they moved, it's just like nothing happened. It's like they don't even realize that that quarter million has to be paid by someone.
They bought a house for $200k in Stockton. Initial loan was nice and sane and affordable for them. Then her dad starts talking to people at work who were all riding the wave and re-financing to take equity out of their houses that had bumped up in value to 300k+.
For some reason they thinks it's a good idea to do the same thing without consulting their only financially responsible child or her husband. They pulled out 80k more, then have this option ARM loan where they are paying less than principal and interest. Meanwhile 80k is enough to get them used to a standard of living they can't sustain even before the payments baloon at the end of their fixed rate period.
I have no clue they've done this until they owe $380k on their house (after the bust, when they're struggling to make payments. The house was worth like $150k tops and their payment balooned to nearly $3k.) I'm not sure what they wanted us to help with, nobody can spare $1500 a month for 25 years to make up for them being totally irresponsible for 3 or 4 years. So they either foreclosed or made a short-sale, not sure which.
You wanna know why the economy hit the crapper? People charging up a storm who can't afford it is a drop in the bucket compared to people who got into loans they KNEW they couldn't afford once the fixed interest period was up.
The thing that really cheeses me is they're completely free of it now. They were able to just kinda walk away from being responsible for almost a quarter million dollars in losses. Sure they had to move and rent and won't own a house again ever. But now that they moved, it's just like nothing happened. It's like they don't even realize that that quarter million has to be paid by someone.
I was just thinking about you last week!
you will have PM shortly
11-10-2009, 10:05 PM
#18
Old School
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iTrader: (6)
Join Date: Jan 2001
Location: Union City
Posts: 14,983
Car Info: '99 RBP GM6
Those aren't middle of the row, anything less than like $300 is pretty much a budget player... at least, has budget features, but yeah... I guess it's all relative.
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