[quote=jpinpb][quote=flu]Dude what is the fascination of what people do for a living? So the $200k loss on the home for the chiro… What’s that, 6 months of salary? :)[/quote]
Attention Piggs: flu now available to work for free for 6 months, not a problem ;)[/quote]
actually this is a good case study showing professionals and upper middle class folks really have the most to lose when it comes to RE purchase mistakes.
Today if the flipper was a typical renter class buyer that took adventage of loose lending standards, used a typical zero down, 80/20 loan commonly available back in the days, he/she would have walked away with no losses at all. They came into the transaction with nothing, and they leave with nothing. Actually they probably leave with couple of years of free rent and the opportunity to live in a house they would have never had an opportunity to live in before.
But as a responsible upper middle class professional, straight up non-payment and foreclosure was not an obvious choice. And so you end up with a upstanding professional losing over $400k over 3 years.
That’s at least a couple of years of income especially since chiros do get hit hard when the economy goes down. (they are more of the non-essential medical services).
If this guy is young, he likely invested all of his savings. And will not be able to afford a house for some time to come. We are talking a life changing experience here. This is a huge game changer for him.
This is why this example is so important for all of us here. As a lot of Piggs can probably relate to this guy. Because frankly he is one of us, but somebody gave him the wrong advice and he wasn’t fortunate enough to stumble on this website and others like it.
