Overheard by the Pool

[mydogsarelazy]

Here is a conversation I overheard today while my daughter was at a pool party:

Woman #1: … so when we bought the house, our agent told us “Don’t worry, your husband will get a raise every year, so you will do just fine with the adjustable mortgage if it does go up.”

So guess what: this year he isn’t getting a raise.

Woman #2: So, what are you going to do?

Woman #1: Well, I think I need to get a part-time job, maybe at Lowes.

So, how many times do you think this conversation is being repeated across the US right now.

JS

[HLS]

It’s not all across the US, it’s in the overheated markets that are imploding. Most homeowners won’t be affected other than a drop in net worth, but the folks that are affected will continue to drop like flies.

Highly irresponsible, unethical advice from an agent, who will probably deny that is what they said.

Ya can’t put a price on ethical advice.

Pass the suntan lotion please.

[HLS]

It’s not all across the US, it’s in the overheated markets that are imploding. Most homeowners won’t be affected other than a drop in net worth, but the folks that are affected will continue to drop like flies.

Highly irresponsible, unethical advice from an agent, who will probably deny that is what they said.

Ya can’t put a price on ethical advice.

Pass the suntan lotion please.

[greekfire]

You also can’t put a price on common sense. These people, if they had even a small amount of common sense, would’ve figured out that they were stretching too far with their home purchase. Some might argue that they are more to blame than the unethical, greasy agent because they actually took his word for gospel rather than using their own common sense. I am sure that they have learned a lot from this and I hope everything works out for them.

[greekfire]

You also can’t put a price on common sense. These people, if they had even a small amount of common sense, would’ve figured out that they were stretching too far with their home purchase. Some might argue that they are more to blame than the unethical, greasy agent because they actually took his word for gospel rather than using their own common sense. I am sure that they have learned a lot from this and I hope everything works out for them.

[HLS]

People refuse to accept that they were gambling (and have lost) I don’t think that a part time job at Lowe’s is going to make up for a major salary increase.

I totally agree about common sense, but the fact is that the people who gambled in 2002-2004 (at prices that were stupid to me) still have equity, even if they did an exotic loan of the worst kind.

Another year or so, and they may not have any equity.

[HLS]

People refuse to accept that they were gambling (and have lost) I don’t think that a part time job at Lowe’s is going to make up for a major salary increase.

I totally agree about common sense, but the fact is that the people who gambled in 2002-2004 (at prices that were stupid to me) still have equity, even if they did an exotic loan of the worst kind.

Another year or so, and they may not have any equity.

[HereWeGo]

Yeah, “buy and hold” can be a really bad philosophy for the wrong investment.

[HereWeGo]

Yeah, “buy and hold” can be a really bad philosophy for the wrong investment.

[doublewide]

Pools must be a good place for these types of conversations.

Last month heard a friend chatting about their HELOC at a pool party. I figured they’d be in great shape since they’d bought back in ’98 in a really good area, but not so much. They’d done the HELOC thing to buy cars, trips, etc. and were now using it to pay their mortgage payments. Had almost no equity left in the house and were concerned because home values were slipping. He was talking about doing a re-fi to lump everything into a new 40 year mortgage while he could still get it appraised for around 700K!

Scary stuff !!!

Doublewide

[doublewide]

Pools must be a good place for these types of conversations.

Last month heard a friend chatting about their HELOC at a pool party. I figured they’d be in great shape since they’d bought back in ’98 in a really good area, but not so much. They’d done the HELOC thing to buy cars, trips, etc. and were now using it to pay their mortgage payments. Had almost no equity left in the house and were concerned because home values were slipping. He was talking about doing a re-fi to lump everything into a new 40 year mortgage while he could still get it appraised for around 700K!

Scary stuff !!!

Doublewide

[hipmatt]

like lowe’s is hiring now anyways……
most likely, they will eventually walk away from the home, as many others will too.

[hipmatt]

like lowe’s is hiring now anyways……
most likely, they will eventually walk away from the home, as many others will too.

[Tone]

I’ve always wondered why it’s called “common” sense when the majority of people seem to lack it.

[Tone]

I’ve always wondered why it’s called “common” sense when the majority of people seem to lack it.

[Author]

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