Houses still used as ATM

[SDowner]

So, in the recent few months I have personally heard of 4 different households pulling equity out of their homes multiple times to do improvements in the kitchen, put in a new pool etc. These households are not flush with money and live from paycheck to paycheck, have credit card debt, student loans. Moreover, they all declared bankruptcy and foreclosed on their homes during the bubble aftermath.

No one seems to have learnt any lesson and using their homes as ATM. I feel I am just being punished for being prudent. Saving instead of spending and getting very little in return. Am I the only one?

[bearishgurl]

The $64M question is, “Will their lenders (the Big Banks) promptly foreclose on those (defaulted-upon) HELOCS as soon as the law allows?” Any Pigg correct me if I’m wrong that all foreclosure moratoriums have now passed.

In my experience, BK filers tend to be repeat BK filers just 7-8 years after final discharge of their last filing (yes, even 3-5 times in a row). You can’t change someone’s basic character. If the character of someone includes a “sense of entitlement,” then the behavior of that person will continue to reflect that throughout his/her life.

If the answer to the $64M question is yes, then this group is overindebted and will get their comeuppance sooner than later or be forced to sell if they can get out with their heads above water. If the answer is no, then banks have learned nothing this time around but will likely NOT be bailed out by the gubment (ESP HELOC lenders). This will only make it more expensive for highly-qualified homeowners to take out HELOCs in the future.

[spdrun]

Punished? What do you think will happen if one of them loses a job?

Plus if they’re living from paycheck to paycheck, good luck to them if they want to take a vacation, see the world, take time off, etc. They’ve made themselves some very nice jail cells, complete with pools and renovated kitchens.

Don’t envy if you should pity. Think of it as the Martha Stewart house-arrest plan.

[flyer]

No SD, you are not the only one–good for you–and I like sp’s comments also–spot on.

We see this type of behavior with people we know of also, and wonder what in the world they are thinking.

Although we invested heavily in real estate in San Diego and other places many years ago, and have tons of equity in those properties today, it’s just not in our DNA to live the way you described.

Separate and apart from other investments we’re involved in, we wanted to have seven figures stashed by the time we were 50, and have no regrets in doing so. Even then, we have still been able to enjoy life along the way.

Many people want what they want when they want
it–whether they can afford it or not. For some, that may work out, for others it will be a disaster. Guess they are placing their bets and taking their chances.

[scaredyclassic]

its just amazing to me that people continue to want all kind s of crap. often when i go in a store, i think, why is there even a security guard who the hell wants this crap? i wouldnt take it for free. im exaggerating a bit, and there are some things i want here and there, but really, most of it all, please, keep it. just not worth the hassle. an endless sea of more and more crappy stuff. i guess it’s good that people continue to brred and spend, breed and spend…im just not feeling it.

[Coronita]

I have needs and wants too.

I want a ferrari..
I need a porsche…

[scaredyclassic]

Cars are a pain.
Clothes require cleaning.
Furniture is dumb.
Odd objects are clutter.
I hate shoes. All you need is one pair sandals.
We could redo stuff but why???? Why????

If I took 50,000 out right now I don’t think I could find anything to spend it on.

I really wanted a copy of My Struggle by Karl knaussgard but that was a mere 15$. For vol. 1. I expect I will desire vols. 2 and 3 also(Awesome book!!!) Can’t think of anything else.

I need tuition money for SDSU, arborist school and also I like to spend money on good groceries. But we have that $.

I’d like to have enough cash to slip my kids a few grand whenever. That’d be cool. They have stuff they desire.

A mew ex pokemon card for instance. The level of desire is incredible.

i guess minialism is trndy, perhaps even peaking. im not saying necessarily minimalism, all im saying is, when you really look at stuff, do you really really want it?

i also wonder that more men don’t feel this way about affairs and not staying with their wives. when i see another woman, all i see is a giant headache. more desires, more problems, expenses, this that the other thing. good lord. it makes the head hurt.

i don’t think my testosterone is low. but i am low on desire.

[spdrun]

^^^

50 grand to burn — easy, take wife and kids on a trip to somewhere (or multiple places) interesting. Not necessarily luxurious, but interesting.

[FlyerInHi]

[quote=scaredyclassic]
i also wonder that more men don’t feel this way about affairs and not staying with their wives. when i see another woman, all i see is a giant headache. more desires, more problems, expenses, this that the other thing. good lord. it makes the head hurt.

i don’t think my testosterone is low. but i am low on desire.[/quote]

I feel exactly this way.

I’m all setup in terms of material needs and housing. 700sf condo as a main residence and an 1800sf second home.

If I get married to an older woman whose biological clock it ticking, she’ll probably want a house in the suburbs somewhere with a luxury SUV. A younger woman would want shopping sprees for handbags, shoes, etc…

Yes, it makes the head hurt!

[FlyerInHi]

[quote=spdrun]

Don’t envy if you should pity. [/quote]

I can understand the envy a little bit, but only a little.

I went to this couple’s house in The Lakes, NV (Citibank processes credit cards there so the neighborhood is not called Las Vegas because of the bad connotation with gambling). It’s on a man made lake made to look like the intercoastal in Florida, complete with small boat dock in the back.

They sold their house in Orange County and just bought a $1.3 million house. They are gutting the whole thing and remodeling the Tuscan palace. It has a swimming pool with sunken bar area and a separate guest suite. Grand a first sight but kinda ugly upon closer examination.

I was a little jealous for a few minutes. But I wouldn’t want to carry such a McMansion and maintain that kind of lifestyle. They are not that rich. I think the guy did it to make his wife happy.

If I had more money to spare, I’d rather want a small 400sf studio in NYC and another one in Europe somewhere.

[CA renter]

Why should anyone have learned a lesson? If anything, the “Financial Crisis” taught us that being a deadbeat borrower or reckless lender will make you a victim; often, a rich victim.

The deadbeats were allowed to squat for YEARS while us loser renters paid our rent dutifully every month. If we renters were to stop paying, nobody would have revolted or marched to protect our rights to stay in our rentals for free or significantly reduced rents. Nobody is crying for us when we can’t earn a low-risk interest rate over 1% for short term savings vehicles — losing money every year because of the inflation that was forced on us in order to save the aforementioned “victims.”

Yes, it’s easy to become disillusioned with our financial system and govt, but at least we should be able to sleep well at night. Hopefully, someday, those who’ve tried to be more conservative and responsible will be rewarded for their efforts…but don’t hold your breath.

[SDowner]

You verbalized the root reason for my post very well CA renter. That is exactly my frustration. I dont know if the financially responsible ones will come out the winners, just cause the govt and tax laws encourage a debt ridden society.

[scaredyclassic]

[quote=spdrun]^^^

50 grand to burn — easy, take wife and kids on a trip to somewhere (or multiple places) interesting. Not necessarily luxurious, but interesting.[/quote]

too complicated. scheduling, arrangements, etc. i can’t do it.

[scaredyclassic]

[quote=FlyerInHi][quote=scaredyclassic]
i also wonder that more men don’t feel this way about affairs and not staying with their wives. when i see another woman, all i see is a giant headache. more desires, more problems, expenses, this that the other thing. good lord. it makes the head hurt.

i don’t think my testosterone is low. but i am low on desire.[/quote]

I feel exactly this way.

I’m all setup in terms of material needs and housing. 700sf condo as a main residence and an 1800sf second home.

If I get married to an older woman whose biological clock it ticking, she’ll probably want a house in the suburbs somewhere with a luxury SUV. A younger woman would want shopping sprees for handbags, shoes, etc…

Yes, it makes the head hurt![/quote]

perhaps you are Harold looking for his Maude.

[scaredyclassic]

buy a rolex and youll get hit with a $500 cleaning and lube bill a few years down the line.

everything you get comes witha cost.

[Author]

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