Poor six-figure family

[trex]

From the Union Tribune (http://www.signonsandiego.com/news/business/20071202-9999-lz1b2mortgage.html)

An engineer and his wife make over 100k a year, and they can’t afford their 352k mortgage payment ($2900/month). So they call Countrywide and get a permanent interest rate reduction to 5.25%.

Huh? What am I missing?

[Fearful]

LOL if Countrywide is paying 5.45% to get money, and they are willing to lend it at 5.25%, how much money do you trust with Countrywide? Watch that FDIC coverage!

[Fearful]

LOL if Countrywide is paying 5.45% to get money, and they are willing to lend it at 5.25%, how much money do you trust with Countrywide? Watch that FDIC coverage!

[Fearful]

LOL if Countrywide is paying 5.45% to get money, and they are willing to lend it at 5.25%, how much money do you trust with Countrywide? Watch that FDIC coverage!

[Fearful]

LOL if Countrywide is paying 5.45% to get money, and they are willing to lend it at 5.25%, how much money do you trust with Countrywide? Watch that FDIC coverage!

[Fearful]

LOL if Countrywide is paying 5.45% to get money, and they are willing to lend it at 5.25%, how much money do you trust with Countrywide? Watch that FDIC coverage!

[kev374]

Not sure how this works as Countrywide bank is offering 5.45% on their CDs so how are they offering 5.25%?

“This is really great news for the Hornbeeks,” Barrett said. “Their mortgage would only go up about $1,000 a year based on the new interest rate, but it’s something we all agree that they’ll be able to manage in the short term. And, as we’d hoped, it will give them some time for the market to recover and for Mike’s salary to increase.”

What happens when they have to pay interest and principle in 3-5 yrs and can’t afford that payment? Are they going to renegotiate yet again?

Looks like they are getting into the same cycle again, trying to mend things for the short term and speculating that they will figure something out down the line.

The bottom line is that given this family’s financial picture they cannot afford a $440,000 property!

[trex]

Maybe I’m out of touch, but I was surprised the opposite way – how *can’t* they afford $2900 a month? With about 10k a month, why can’t they just tighten their belts a bit and ride it out? Used clothing stores, eat at home, etc? Given that they have no assets, I’m assuming there are two nice cars in the garage. Sell them and get an old Toyota for 2k.

[temeculaguy]

I’m with trex, 345k mortgage on 100k+, it’s tight but that’s how it is when you are young and you buy a house, with ebay and craigslist today, you can cut some corners. Then I read the rest of the article and they took an 85k second mortgage, so they financed the whole thing. They also aren’t that young, where has the money been going all these years. No matter what, borrowing 4.5x your income is too much.

[The OC Scam]

I’m also on board with TG and Trex

I just heard of a family friend that makes around 120k with a 400k loan that went to CW to freeze their interest rate and CW said to quit paying their credit cards as financial advice….?

People just spend to much plain and simple.

[The OC Scam]

I’m also on board with TG and Trex

I just heard of a family friend that makes around 120k with a 400k loan that went to CW to freeze their interest rate and CW said to quit paying their credit cards as financial advice….?

People just spend to much plain and simple.

[The OC Scam]

I’m also on board with TG and Trex

I just heard of a family friend that makes around 120k with a 400k loan that went to CW to freeze their interest rate and CW said to quit paying their credit cards as financial advice….?

People just spend to much plain and simple.

[The OC Scam]

I’m also on board with TG and Trex

I just heard of a family friend that makes around 120k with a 400k loan that went to CW to freeze their interest rate and CW said to quit paying their credit cards as financial advice….?

People just spend to much plain and simple.

[The OC Scam]

I’m also on board with TG and Trex

I just heard of a family friend that makes around 120k with a 400k loan that went to CW to freeze their interest rate and CW said to quit paying their credit cards as financial advice….?

People just spend to much plain and simple.

[temeculaguy]

I’m with trex, 345k mortgage on 100k+, it’s tight but that’s how it is when you are young and you buy a house, with ebay and craigslist today, you can cut some corners. Then I read the rest of the article and they took an 85k second mortgage, so they financed the whole thing. They also aren’t that young, where has the money been going all these years. No matter what, borrowing 4.5x your income is too much.

[temeculaguy]

I’m with trex, 345k mortgage on 100k+, it’s tight but that’s how it is when you are young and you buy a house, with ebay and craigslist today, you can cut some corners. Then I read the rest of the article and they took an 85k second mortgage, so they financed the whole thing. They also aren’t that young, where has the money been going all these years. No matter what, borrowing 4.5x your income is too much.

[temeculaguy]

I’m with trex, 345k mortgage on 100k+, it’s tight but that’s how it is when you are young and you buy a house, with ebay and craigslist today, you can cut some corners. Then I read the rest of the article and they took an 85k second mortgage, so they financed the whole thing. They also aren’t that young, where has the money been going all these years. No matter what, borrowing 4.5x your income is too much.

[temeculaguy]

I’m with trex, 345k mortgage on 100k+, it’s tight but that’s how it is when you are young and you buy a house, with ebay and craigslist today, you can cut some corners. Then I read the rest of the article and they took an 85k second mortgage, so they financed the whole thing. They also aren’t that young, where has the money been going all these years. No matter what, borrowing 4.5x your income is too much.

[trex]

Maybe I’m out of touch, but I was surprised the opposite way – how *can’t* they afford $2900 a month? With about 10k a month, why can’t they just tighten their belts a bit and ride it out? Used clothing stores, eat at home, etc? Given that they have no assets, I’m assuming there are two nice cars in the garage. Sell them and get an old Toyota for 2k.

[trex]

Maybe I’m out of touch, but I was surprised the opposite way – how *can’t* they afford $2900 a month? With about 10k a month, why can’t they just tighten their belts a bit and ride it out? Used clothing stores, eat at home, etc? Given that they have no assets, I’m assuming there are two nice cars in the garage. Sell them and get an old Toyota for 2k.

[trex]

Maybe I’m out of touch, but I was surprised the opposite way – how *can’t* they afford $2900 a month? With about 10k a month, why can’t they just tighten their belts a bit and ride it out? Used clothing stores, eat at home, etc? Given that they have no assets, I’m assuming there are two nice cars in the garage. Sell them and get an old Toyota for 2k.

[trex]

Maybe I’m out of touch, but I was surprised the opposite way – how *can’t* they afford $2900 a month? With about 10k a month, why can’t they just tighten their belts a bit and ride it out? Used clothing stores, eat at home, etc? Given that they have no assets, I’m assuming there are two nice cars in the garage. Sell them and get an old Toyota for 2k.

[Bubblesitter]

I personally know about 5 younger families in their 30s who have recently decided to pick up roots and move out of California.

Unfortunately, the options for Hornbeeks do not look good. They are stuck. Good reason to rent when relocating to a new locale.

I wonder if the finacial adviser used the following tactic with Countrywide when negotiating the rate freeze.
“listen, I’m doing this free financial makeover for an article to be published in the San Diego UT, you probably should consider giving the Hornbeeks a break. If you don’t, countrywide will come across as heartless in the article”

How many people will have that type of leverage when negotiating a rate freeze?

Bubblesitter

[Bubblesitter]

I personally know about 5 younger families in their 30s who have recently decided to pick up roots and move out of California.

Unfortunately, the options for Hornbeeks do not look good. They are stuck. Good reason to rent when relocating to a new locale.

I wonder if the finacial adviser used the following tactic with Countrywide when negotiating the rate freeze.
“listen, I’m doing this free financial makeover for an article to be published in the San Diego UT, you probably should consider giving the Hornbeeks a break. If you don’t, countrywide will come across as heartless in the article”

How many people will have that type of leverage when negotiating a rate freeze?

Bubblesitter

[Bubblesitter]

I personally know about 5 younger families in their 30s who have recently decided to pick up roots and move out of California.

Unfortunately, the options for Hornbeeks do not look good. They are stuck. Good reason to rent when relocating to a new locale.

I wonder if the finacial adviser used the following tactic with Countrywide when negotiating the rate freeze.
“listen, I’m doing this free financial makeover for an article to be published in the San Diego UT, you probably should consider giving the Hornbeeks a break. If you don’t, countrywide will come across as heartless in the article”

How many people will have that type of leverage when negotiating a rate freeze?

Bubblesitter

[Bubblesitter]

I personally know about 5 younger families in their 30s who have recently decided to pick up roots and move out of California.

Unfortunately, the options for Hornbeeks do not look good. They are stuck. Good reason to rent when relocating to a new locale.

I wonder if the finacial adviser used the following tactic with Countrywide when negotiating the rate freeze.
“listen, I’m doing this free financial makeover for an article to be published in the San Diego UT, you probably should consider giving the Hornbeeks a break. If you don’t, countrywide will come across as heartless in the article”

How many people will have that type of leverage when negotiating a rate freeze?

Bubblesitter

[Bubblesitter]

I personally know about 5 younger families in their 30s who have recently decided to pick up roots and move out of California.

Unfortunately, the options for Hornbeeks do not look good. They are stuck. Good reason to rent when relocating to a new locale.

I wonder if the finacial adviser used the following tactic with Countrywide when negotiating the rate freeze.
“listen, I’m doing this free financial makeover for an article to be published in the San Diego UT, you probably should consider giving the Hornbeeks a break. If you don’t, countrywide will come across as heartless in the article”

How many people will have that type of leverage when negotiating a rate freeze?

Bubblesitter

[kev374]

Not sure how this works as Countrywide bank is offering 5.45% on their CDs so how are they offering 5.25%?

“This is really great news for the Hornbeeks,” Barrett said. “Their mortgage would only go up about $1,000 a year based on the new interest rate, but it’s something we all agree that they’ll be able to manage in the short term. And, as we’d hoped, it will give them some time for the market to recover and for Mike’s salary to increase.”

What happens when they have to pay interest and principle in 3-5 yrs and can’t afford that payment? Are they going to renegotiate yet again?

Looks like they are getting into the same cycle again, trying to mend things for the short term and speculating that they will figure something out down the line.

The bottom line is that given this family’s financial picture they cannot afford a $440,000 property!

[kev374]

Not sure how this works as Countrywide bank is offering 5.45% on their CDs so how are they offering 5.25%?

“This is really great news for the Hornbeeks,” Barrett said. “Their mortgage would only go up about $1,000 a year based on the new interest rate, but it’s something we all agree that they’ll be able to manage in the short term. And, as we’d hoped, it will give them some time for the market to recover and for Mike’s salary to increase.”

What happens when they have to pay interest and principle in 3-5 yrs and can’t afford that payment? Are they going to renegotiate yet again?

Looks like they are getting into the same cycle again, trying to mend things for the short term and speculating that they will figure something out down the line.

The bottom line is that given this family’s financial picture they cannot afford a $440,000 property!

[kev374]

Not sure how this works as Countrywide bank is offering 5.45% on their CDs so how are they offering 5.25%?

“This is really great news for the Hornbeeks,” Barrett said. “Their mortgage would only go up about $1,000 a year based on the new interest rate, but it’s something we all agree that they’ll be able to manage in the short term. And, as we’d hoped, it will give them some time for the market to recover and for Mike’s salary to increase.”

What happens when they have to pay interest and principle in 3-5 yrs and can’t afford that payment? Are they going to renegotiate yet again?

Looks like they are getting into the same cycle again, trying to mend things for the short term and speculating that they will figure something out down the line.

The bottom line is that given this family’s financial picture they cannot afford a $440,000 property!

[kev374]

Not sure how this works as Countrywide bank is offering 5.45% on their CDs so how are they offering 5.25%?

“This is really great news for the Hornbeeks,” Barrett said. “Their mortgage would only go up about $1,000 a year based on the new interest rate, but it’s something we all agree that they’ll be able to manage in the short term. And, as we’d hoped, it will give them some time for the market to recover and for Mike’s salary to increase.”

What happens when they have to pay interest and principle in 3-5 yrs and can’t afford that payment? Are they going to renegotiate yet again?

Looks like they are getting into the same cycle again, trying to mend things for the short term and speculating that they will figure something out down the line.

The bottom line is that given this family’s financial picture they cannot afford a $440,000 property!

[meadandale]

What pisses me off about this story is that they gambled on an interest only ARM to get a lower rate and lost.

But they are winners because they are going to get their interest rate FIXED at a rate that is lower than my 30 year fixed rate loan because I did the responsible thing and bought a house I could afford and didn’t gamble on rising rates.

Once again, the people who do the right thing are the losers and the irresponsible come out ahead….

[paramount]

Amen! People who are “responsible” seem to always be on the short end. I have seen that throughout my life.

[paramount]

Amen! People who are “responsible” seem to always be on the short end. I have seen that throughout my life.

[paramount]

Amen! People who are “responsible” seem to always be on the short end. I have seen that throughout my life.

[paramount]

Amen! People who are “responsible” seem to always be on the short end. I have seen that throughout my life.

[paramount]

Amen! People who are “responsible” seem to always be on the short end. I have seen that throughout my life.

[meadandale]

What pisses me off about this story is that they gambled on an interest only ARM to get a lower rate and lost.

But they are winners because they are going to get their interest rate FIXED at a rate that is lower than my 30 year fixed rate loan because I did the responsible thing and bought a house I could afford and didn’t gamble on rising rates.

Once again, the people who do the right thing are the losers and the irresponsible come out ahead….

[meadandale]

What pisses me off about this story is that they gambled on an interest only ARM to get a lower rate and lost.

But they are winners because they are going to get their interest rate FIXED at a rate that is lower than my 30 year fixed rate loan because I did the responsible thing and bought a house I could afford and didn’t gamble on rising rates.

Once again, the people who do the right thing are the losers and the irresponsible come out ahead….

[meadandale]

What pisses me off about this story is that they gambled on an interest only ARM to get a lower rate and lost.

But they are winners because they are going to get their interest rate FIXED at a rate that is lower than my 30 year fixed rate loan because I did the responsible thing and bought a house I could afford and didn’t gamble on rising rates.

Once again, the people who do the right thing are the losers and the irresponsible come out ahead….

[meadandale]

What pisses me off about this story is that they gambled on an interest only ARM to get a lower rate and lost.

But they are winners because they are going to get their interest rate FIXED at a rate that is lower than my 30 year fixed rate loan because I did the responsible thing and bought a house I could afford and didn’t gamble on rising rates.

Once again, the people who do the right thing are the losers and the irresponsible come out ahead….

[dejams]

WTF! 100K can’t afford a 352K mortgage? Are you kidding me? What’s their spending and saving habit? People like them don’t need help, they need to learn to adjust on living with their income and tighten their belts when comes to hard time. I worked two jobs and didn’t go out much when I needed the money for down payment and pay off car loan. I just can’t believe the bank is willing to help such fortunate 100K earner. People like them need to learn how to save instead of spending every cent and depend on credit cards. This is why American rank low when comes to saving money.

[Ricechex]

This reminds me of a friend of mine. He and his partner bought a brand new house about 7 years ago. They bought with no money down, but got a fixed rate. They have a spending problem, and have re-financed 3X since the purchase. They are always buying things….large screen TVs, Honda Acura, and even remodeled their kitchen! (Wow is that necessary in a new house?) For 2 of their re-fi’s, they borrowed a significant amount of change from me–though, my friend tells me I am a “ghetto dweller” as I live in North Park, and drive an older car. They did pay me back, but I told them that was my LAST time loaning them money.

Anyway, the last re-fi they did on an ARM and it adjusts in March. My friend may lose his job in February. They already have a roommate, and cannot increase her rent anymore. His thought is, either the bank does a re-fi at a fixed rate, or they can have the house. His belief is that in today’s market, the bank will work with them. A couple of months ago, he pulled all his retirement money to pay off CC bills. So, now who is going to support people like this when retirement comes around?

If the bank does not work with them, they will bail and let the bank have the house. I have no doubt that they will continue to spend like crazy, as I have known them 15 years and this is what they do. I don’t wish him any ill will, as he is my best friend, and if the bank wants to take the loss, then that is on the bank. However, it really irks me.

[TheBreeze]

Countrywide may have already off-loaded this loan to the Federal Government through one of the Federal Home Loan Banks (FHLB). The FHLBs have bought something like $200 billion of Countrywide loans in recent weeks. So its likely that the American taxpayer owns this loan and Countrywide is just the servicer. As the loan servicer, Countrywide probably doesn’t care what the interest rate is.

When Countrywide next reports earnings, I wouldn’t be surprised to see a lot of their bad loans off-loaded to the FHLBs. This allows Countrywide to go on making bad loans while the American taxpayer foots the bill. God bless America and Angela Mozilla.

[TheBreeze]

Countrywide may have already off-loaded this loan to the Federal Government through one of the Federal Home Loan Banks (FHLB). The FHLBs have bought something like $200 billion of Countrywide loans in recent weeks. So its likely that the American taxpayer owns this loan and Countrywide is just the servicer. As the loan servicer, Countrywide probably doesn’t care what the interest rate is.

When Countrywide next reports earnings, I wouldn’t be surprised to see a lot of their bad loans off-loaded to the FHLBs. This allows Countrywide to go on making bad loans while the American taxpayer foots the bill. God bless America and Angela Mozilla.

[TheBreeze]

Countrywide may have already off-loaded this loan to the Federal Government through one of the Federal Home Loan Banks (FHLB). The FHLBs have bought something like $200 billion of Countrywide loans in recent weeks. So its likely that the American taxpayer owns this loan and Countrywide is just the servicer. As the loan servicer, Countrywide probably doesn’t care what the interest rate is.

When Countrywide next reports earnings, I wouldn’t be surprised to see a lot of their bad loans off-loaded to the FHLBs. This allows Countrywide to go on making bad loans while the American taxpayer foots the bill. God bless America and Angela Mozilla.

[TheBreeze]

Countrywide may have already off-loaded this loan to the Federal Government through one of the Federal Home Loan Banks (FHLB). The FHLBs have bought something like $200 billion of Countrywide loans in recent weeks. So its likely that the American taxpayer owns this loan and Countrywide is just the servicer. As the loan servicer, Countrywide probably doesn’t care what the interest rate is.

When Countrywide next reports earnings, I wouldn’t be surprised to see a lot of their bad loans off-loaded to the FHLBs. This allows Countrywide to go on making bad loans while the American taxpayer foots the bill. God bless America and Angela Mozilla.

[TheBreeze]

Countrywide may have already off-loaded this loan to the Federal Government through one of the Federal Home Loan Banks (FHLB). The FHLBs have bought something like $200 billion of Countrywide loans in recent weeks. So its likely that the American taxpayer owns this loan and Countrywide is just the servicer. As the loan servicer, Countrywide probably doesn’t care what the interest rate is.

When Countrywide next reports earnings, I wouldn’t be surprised to see a lot of their bad loans off-loaded to the FHLBs. This allows Countrywide to go on making bad loans while the American taxpayer foots the bill. God bless America and Angela Mozilla.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[Ricechex]

This reminds me of a friend of mine. He and his partner bought a brand new house about 7 years ago. They bought with no money down, but got a fixed rate. They have a spending problem, and have re-financed 3X since the purchase. They are always buying things….large screen TVs, Honda Acura, and even remodeled their kitchen! (Wow is that necessary in a new house?) For 2 of their re-fi’s, they borrowed a significant amount of change from me–though, my friend tells me I am a “ghetto dweller” as I live in North Park, and drive an older car. They did pay me back, but I told them that was my LAST time loaning them money.

Anyway, the last re-fi they did on an ARM and it adjusts in March. My friend may lose his job in February. They already have a roommate, and cannot increase her rent anymore. His thought is, either the bank does a re-fi at a fixed rate, or they can have the house. His belief is that in today’s market, the bank will work with them. A couple of months ago, he pulled all his retirement money to pay off CC bills. So, now who is going to support people like this when retirement comes around?

If the bank does not work with them, they will bail and let the bank have the house. I have no doubt that they will continue to spend like crazy, as I have known them 15 years and this is what they do. I don’t wish him any ill will, as he is my best friend, and if the bank wants to take the loss, then that is on the bank. However, it really irks me.

[Ricechex]

This reminds me of a friend of mine. He and his partner bought a brand new house about 7 years ago. They bought with no money down, but got a fixed rate. They have a spending problem, and have re-financed 3X since the purchase. They are always buying things….large screen TVs, Honda Acura, and even remodeled their kitchen! (Wow is that necessary in a new house?) For 2 of their re-fi’s, they borrowed a significant amount of change from me–though, my friend tells me I am a “ghetto dweller” as I live in North Park, and drive an older car. They did pay me back, but I told them that was my LAST time loaning them money.

Anyway, the last re-fi they did on an ARM and it adjusts in March. My friend may lose his job in February. They already have a roommate, and cannot increase her rent anymore. His thought is, either the bank does a re-fi at a fixed rate, or they can have the house. His belief is that in today’s market, the bank will work with them. A couple of months ago, he pulled all his retirement money to pay off CC bills. So, now who is going to support people like this when retirement comes around?

If the bank does not work with them, they will bail and let the bank have the house. I have no doubt that they will continue to spend like crazy, as I have known them 15 years and this is what they do. I don’t wish him any ill will, as he is my best friend, and if the bank wants to take the loss, then that is on the bank. However, it really irks me.

[Ricechex]

This reminds me of a friend of mine. He and his partner bought a brand new house about 7 years ago. They bought with no money down, but got a fixed rate. They have a spending problem, and have re-financed 3X since the purchase. They are always buying things….large screen TVs, Honda Acura, and even remodeled their kitchen! (Wow is that necessary in a new house?) For 2 of their re-fi’s, they borrowed a significant amount of change from me–though, my friend tells me I am a “ghetto dweller” as I live in North Park, and drive an older car. They did pay me back, but I told them that was my LAST time loaning them money.

Anyway, the last re-fi they did on an ARM and it adjusts in March. My friend may lose his job in February. They already have a roommate, and cannot increase her rent anymore. His thought is, either the bank does a re-fi at a fixed rate, or they can have the house. His belief is that in today’s market, the bank will work with them. A couple of months ago, he pulled all his retirement money to pay off CC bills. So, now who is going to support people like this when retirement comes around?

If the bank does not work with them, they will bail and let the bank have the house. I have no doubt that they will continue to spend like crazy, as I have known them 15 years and this is what they do. I don’t wish him any ill will, as he is my best friend, and if the bank wants to take the loss, then that is on the bank. However, it really irks me.

[Ricechex]

This reminds me of a friend of mine. He and his partner bought a brand new house about 7 years ago. They bought with no money down, but got a fixed rate. They have a spending problem, and have re-financed 3X since the purchase. They are always buying things….large screen TVs, Honda Acura, and even remodeled their kitchen! (Wow is that necessary in a new house?) For 2 of their re-fi’s, they borrowed a significant amount of change from me–though, my friend tells me I am a “ghetto dweller” as I live in North Park, and drive an older car. They did pay me back, but I told them that was my LAST time loaning them money.

Anyway, the last re-fi they did on an ARM and it adjusts in March. My friend may lose his job in February. They already have a roommate, and cannot increase her rent anymore. His thought is, either the bank does a re-fi at a fixed rate, or they can have the house. His belief is that in today’s market, the bank will work with them. A couple of months ago, he pulled all his retirement money to pay off CC bills. So, now who is going to support people like this when retirement comes around?

If the bank does not work with them, they will bail and let the bank have the house. I have no doubt that they will continue to spend like crazy, as I have known them 15 years and this is what they do. I don’t wish him any ill will, as he is my best friend, and if the bank wants to take the loss, then that is on the bank. However, it really irks me.

[Anonymous]

Government always saves the best lobbyists out there (and by default this couple for the greater good, of the banks). Countrywide is smart, they keep the couple in at the inflated value letting them make all the repairs and maintenance while basically renting from the bank.

interest and prop tax: 2900 + 500 = 3400 at 65%, after tax, approximately = 2210 That’s no principal, utilities (killer) hoa or maintenance.

over 100K must mean 101K .

100/12 = 8333 gross – the tax deductible I & PT 3400 = 4933.

The rest (4933) is taxed at about an average of 41% (Fed CA, Fica and medicare). So 4,933 @ 41% = 2022 taxes.

8333 – 2022 = 6311 or 75732/year. 6311 – 3400 = 2911 or 34932/year to pay everything other than Home Interest and Property Taxes.

Their income gets cut in a third right away. But after a long day’s work they probably say, sheesh, we work so hard and make over 100K, don’t we surely deserve a little of this and that. Isn’t that how America works now.

Then they have to pay : Principal, Utilities, HOA, maintenance, insurance(car and home), car maint, med and dental, donations(no wonder giving is down) food, misc, E & R(not much probably) hopefully no car payment.

My only question is, why did couples keep taking the bait. Couldn’t they have let their friends go ahead and buy and forget it. But, watching every buyer brag about tripling their net worth must have been too hard to bear for these couples. Sadly, most people look at their own salary and think what they actually can afford isn’t good enough for them.

Don’t bite my head off, but on this list, I read the posters arguing about whether homes stink if they are 50 feet further from a lagoon in one of most expensive areas in the North county. How could anyone be reasonable today?

[Anonymous]

Government always saves the best lobbyists out there (and by default this couple for the greater good, of the banks). Countrywide is smart, they keep the couple in at the inflated value letting them make all the repairs and maintenance while basically renting from the bank.

interest and prop tax: 2900 + 500 = 3400 at 65%, after tax, approximately = 2210 That’s no principal, utilities (killer) hoa or maintenance.

over 100K must mean 101K .

100/12 = 8333 gross – the tax deductible I & PT 3400 = 4933.

The rest (4933) is taxed at about an average of 41% (Fed CA, Fica and medicare). So 4,933 @ 41% = 2022 taxes.

8333 – 2022 = 6311 or 75732/year. 6311 – 3400 = 2911 or 34932/year to pay everything other than Home Interest and Property Taxes.

Their income gets cut in a third right away. But after a long day’s work they probably say, sheesh, we work so hard and make over 100K, don’t we surely deserve a little of this and that. Isn’t that how America works now.

Then they have to pay : Principal, Utilities, HOA, maintenance, insurance(car and home), car maint, med and dental, donations(no wonder giving is down) food, misc, E & R(not much probably) hopefully no car payment.

My only question is, why did couples keep taking the bait. Couldn’t they have let their friends go ahead and buy and forget it. But, watching every buyer brag about tripling their net worth must have been too hard to bear for these couples. Sadly, most people look at their own salary and think what they actually can afford isn’t good enough for them.

Don’t bite my head off, but on this list, I read the posters arguing about whether homes stink if they are 50 feet further from a lagoon in one of most expensive areas in the North county. How could anyone be reasonable today?

[Anonymous]

Government always saves the best lobbyists out there (and by default this couple for the greater good, of the banks). Countrywide is smart, they keep the couple in at the inflated value letting them make all the repairs and maintenance while basically renting from the bank.

interest and prop tax: 2900 + 500 = 3400 at 65%, after tax, approximately = 2210 That’s no principal, utilities (killer) hoa or maintenance.

over 100K must mean 101K .

100/12 = 8333 gross – the tax deductible I & PT 3400 = 4933.

The rest (4933) is taxed at about an average of 41% (Fed CA, Fica and medicare). So 4,933 @ 41% = 2022 taxes.

8333 – 2022 = 6311 or 75732/year. 6311 – 3400 = 2911 or 34932/year to pay everything other than Home Interest and Property Taxes.

Their income gets cut in a third right away. But after a long day’s work they probably say, sheesh, we work so hard and make over 100K, don’t we surely deserve a little of this and that. Isn’t that how America works now.

Then they have to pay : Principal, Utilities, HOA, maintenance, insurance(car and home), car maint, med and dental, donations(no wonder giving is down) food, misc, E & R(not much probably) hopefully no car payment.

My only question is, why did couples keep taking the bait. Couldn’t they have let their friends go ahead and buy and forget it. But, watching every buyer brag about tripling their net worth must have been too hard to bear for these couples. Sadly, most people look at their own salary and think what they actually can afford isn’t good enough for them.

Don’t bite my head off, but on this list, I read the posters arguing about whether homes stink if they are 50 feet further from a lagoon in one of most expensive areas in the North county. How could anyone be reasonable today?

[Anonymous]

Government always saves the best lobbyists out there (and by default this couple for the greater good, of the banks). Countrywide is smart, they keep the couple in at the inflated value letting them make all the repairs and maintenance while basically renting from the bank.

interest and prop tax: 2900 + 500 = 3400 at 65%, after tax, approximately = 2210 That’s no principal, utilities (killer) hoa or maintenance.

over 100K must mean 101K .

100/12 = 8333 gross – the tax deductible I & PT 3400 = 4933.

The rest (4933) is taxed at about an average of 41% (Fed CA, Fica and medicare). So 4,933 @ 41% = 2022 taxes.

8333 – 2022 = 6311 or 75732/year. 6311 – 3400 = 2911 or 34932/year to pay everything other than Home Interest and Property Taxes.

Their income gets cut in a third right away. But after a long day’s work they probably say, sheesh, we work so hard and make over 100K, don’t we surely deserve a little of this and that. Isn’t that how America works now.

Then they have to pay : Principal, Utilities, HOA, maintenance, insurance(car and home), car maint, med and dental, donations(no wonder giving is down) food, misc, E & R(not much probably) hopefully no car payment.

My only question is, why did couples keep taking the bait. Couldn’t they have let their friends go ahead and buy and forget it. But, watching every buyer brag about tripling their net worth must have been too hard to bear for these couples. Sadly, most people look at their own salary and think what they actually can afford isn’t good enough for them.

Don’t bite my head off, but on this list, I read the posters arguing about whether homes stink if they are 50 feet further from a lagoon in one of most expensive areas in the North county. How could anyone be reasonable today?

[Anonymous]

Government always saves the best lobbyists out there (and by default this couple for the greater good, of the banks). Countrywide is smart, they keep the couple in at the inflated value letting them make all the repairs and maintenance while basically renting from the bank.

interest and prop tax: 2900 + 500 = 3400 at 65%, after tax, approximately = 2210 That’s no principal, utilities (killer) hoa or maintenance.

over 100K must mean 101K .

100/12 = 8333 gross – the tax deductible I & PT 3400 = 4933.

The rest (4933) is taxed at about an average of 41% (Fed CA, Fica and medicare). So 4,933 @ 41% = 2022 taxes.

8333 – 2022 = 6311 or 75732/year. 6311 – 3400 = 2911 or 34932/year to pay everything other than Home Interest and Property Taxes.

Their income gets cut in a third right away. But after a long day’s work they probably say, sheesh, we work so hard and make over 100K, don’t we surely deserve a little of this and that. Isn’t that how America works now.

Then they have to pay : Principal, Utilities, HOA, maintenance, insurance(car and home), car maint, med and dental, donations(no wonder giving is down) food, misc, E & R(not much probably) hopefully no car payment.

My only question is, why did couples keep taking the bait. Couldn’t they have let their friends go ahead and buy and forget it. But, watching every buyer brag about tripling their net worth must have been too hard to bear for these couples. Sadly, most people look at their own salary and think what they actually can afford isn’t good enough for them.

Don’t bite my head off, but on this list, I read the posters arguing about whether homes stink if they are 50 feet further from a lagoon in one of most expensive areas in the North county. How could anyone be reasonable today?

[dejams]

WTF! 100K can’t afford a 352K mortgage? Are you kidding me? What’s their spending and saving habit? People like them don’t need help, they need to learn to adjust on living with their income and tighten their belts when comes to hard time. I worked two jobs and didn’t go out much when I needed the money for down payment and pay off car loan. I just can’t believe the bank is willing to help such fortunate 100K earner. People like them need to learn how to save instead of spending every cent and depend on credit cards. This is why American rank low when comes to saving money.

[dejams]

WTF! 100K can’t afford a 352K mortgage? Are you kidding me? What’s their spending and saving habit? People like them don’t need help, they need to learn to adjust on living with their income and tighten their belts when comes to hard time. I worked two jobs and didn’t go out much when I needed the money for down payment and pay off car loan. I just can’t believe the bank is willing to help such fortunate 100K earner. People like them need to learn how to save instead of spending every cent and depend on credit cards. This is why American rank low when comes to saving money.

[dejams]

WTF! 100K can’t afford a 352K mortgage? Are you kidding me? What’s their spending and saving habit? People like them don’t need help, they need to learn to adjust on living with their income and tighten their belts when comes to hard time. I worked two jobs and didn’t go out much when I needed the money for down payment and pay off car loan. I just can’t believe the bank is willing to help such fortunate 100K earner. People like them need to learn how to save instead of spending every cent and depend on credit cards. This is why American rank low when comes to saving money.

[dejams]

WTF! 100K can’t afford a 352K mortgage? Are you kidding me? What’s their spending and saving habit? People like them don’t need help, they need to learn to adjust on living with their income and tighten their belts when comes to hard time. I worked two jobs and didn’t go out much when I needed the money for down payment and pay off car loan. I just can’t believe the bank is willing to help such fortunate 100K earner. People like them need to learn how to save instead of spending every cent and depend on credit cards. This is why American rank low when comes to saving money.

[glionel]

I just love this…

“Eventually, the Hornbeeks would like to focus on saving for their retirement; they’d like to be able to give an annual tithe of $5,000; Suzanne would like to get braces; and the couple would especially like to put some extra savings away for their children’s college and wedding funds.”

Especially the part about “their children’s college and wedding funds”…

They are in debt up to their eyeballs, and they are seriously concerned about college and wedding funds…
They are really out of touch. Amazing!

Lionel

[Eugene]

Combined monthly payment on their two loans is only around $2100. That leaves $800 month property tax and HOA fees. Half of what it costs to rent a 3br in the area before they even begin paying off mortgage. Ouch.

[no_such_reality]

The problem is written up in plain black and white in the 14th paragraph.

“the family of four depends solely on Michael’s salary to pay the bills: a $2,900 monthly mortgage payment, including taxes and homeowners association dues; a $40,000 school loan; credit card payments; a car loan and their living expenses. ”

[NeetaT]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

[pnilesh]

After reading the UT article, I see how people live paycheck to paycheck. I guarantee you that the couple is living paycheck to paycheck.

Maybe they should move back to buffalo where they could atleast put some money in their retirement savings account instead of giving them to SD county, HOA and ofcourse the profit hungry lender.

I also see now how people do ” amdani athanni kharchaa rupaih” i.e. paycheck is 50 cents but spend 1 dollar and wait for the next paycheck ..

no wonder why subprime is a big business in America!

[pnilesh]

After reading the UT article, I see how people live paycheck to paycheck. I guarantee you that the couple is living paycheck to paycheck.

Maybe they should move back to buffalo where they could atleast put some money in their retirement savings account instead of giving them to SD county, HOA and ofcourse the profit hungry lender.

I also see now how people do ” amdani athanni kharchaa rupaih” i.e. paycheck is 50 cents but spend 1 dollar and wait for the next paycheck ..

no wonder why subprime is a big business in America!

[pnilesh]

After reading the UT article, I see how people live paycheck to paycheck. I guarantee you that the couple is living paycheck to paycheck.

Maybe they should move back to buffalo where they could atleast put some money in their retirement savings account instead of giving them to SD county, HOA and ofcourse the profit hungry lender.

I also see now how people do ” amdani athanni kharchaa rupaih” i.e. paycheck is 50 cents but spend 1 dollar and wait for the next paycheck ..

no wonder why subprime is a big business in America!

[pnilesh]

After reading the UT article, I see how people live paycheck to paycheck. I guarantee you that the couple is living paycheck to paycheck.

Maybe they should move back to buffalo where they could atleast put some money in their retirement savings account instead of giving them to SD county, HOA and ofcourse the profit hungry lender.

I also see now how people do ” amdani athanni kharchaa rupaih” i.e. paycheck is 50 cents but spend 1 dollar and wait for the next paycheck ..

no wonder why subprime is a big business in America!

[pnilesh]

After reading the UT article, I see how people live paycheck to paycheck. I guarantee you that the couple is living paycheck to paycheck.

Maybe they should move back to buffalo where they could atleast put some money in their retirement savings account instead of giving them to SD county, HOA and ofcourse the profit hungry lender.

I also see now how people do ” amdani athanni kharchaa rupaih” i.e. paycheck is 50 cents but spend 1 dollar and wait for the next paycheck ..

no wonder why subprime is a big business in America!

[greensd]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

You’re joking, right?

[nostradamus]

Mine is 1/10th.

[NotCranky]

“Anyway, still don’t understand why they have a financial advisor that advises them into hole after hole. ”

A union tribune pet no less.

Speaking of holes..my inlaw’s financial advisor had to send out a flyer to his clients asking to borrow money to drill a new well. I don’t bring it up during the holidays or any other time. Doesn’t mean they are all bad… no offense to financial advisors. I do wonder why people don’t just ask for good information from smart friends?

[NotCranky]

“Anyway, still don’t understand why they have a financial advisor that advises them into hole after hole. ”

A union tribune pet no less.

Speaking of holes..my inlaw’s financial advisor had to send out a flyer to his clients asking to borrow money to drill a new well. I don’t bring it up during the holidays or any other time. Doesn’t mean they are all bad… no offense to financial advisors. I do wonder why people don’t just ask for good information from smart friends?

[NotCranky]

“Anyway, still don’t understand why they have a financial advisor that advises them into hole after hole. ”

A union tribune pet no less.

Speaking of holes..my inlaw’s financial advisor had to send out a flyer to his clients asking to borrow money to drill a new well. I don’t bring it up during the holidays or any other time. Doesn’t mean they are all bad… no offense to financial advisors. I do wonder why people don’t just ask for good information from smart friends?

[NotCranky]

“Anyway, still don’t understand why they have a financial advisor that advises them into hole after hole. ”

A union tribune pet no less.

Speaking of holes..my inlaw’s financial advisor had to send out a flyer to his clients asking to borrow money to drill a new well. I don’t bring it up during the holidays or any other time. Doesn’t mean they are all bad… no offense to financial advisors. I do wonder why people don’t just ask for good information from smart friends?

[NotCranky]

“Anyway, still don’t understand why they have a financial advisor that advises them into hole after hole. ”

A union tribune pet no less.

Speaking of holes..my inlaw’s financial advisor had to send out a flyer to his clients asking to borrow money to drill a new well. I don’t bring it up during the holidays or any other time. Doesn’t mean they are all bad… no offense to financial advisors. I do wonder why people don’t just ask for good information from smart friends?

[Artifact]

That is tough in San Diego – I rent a small 2 bedroom apartment and that alone puts me above the 1/5th line – I choose to live in Encinitas, but my rent is only 1500 – so I would have to net 7500/month or 90K/year to meet that requirement – I hopefully will get to that point in another year or two, but I am not there yet.

Yes, I could live in a less expensive area of San Diego, but I work in Encinitas, so the cost of driving/commuting would increase to move and the rent would not be thast much lower. I looked around the last time my lease was up and there was just not anything really worth moving for that would save any money over what we have.

I am married with children, so we do need at least 2 bedrooms, and as someone pointed out earlier, young children cost a lot – my wife stays home with them. My point is not to complain, we choose to live in a smaller place in a nicer area so we can save some money and try to get ahead. It was also important to us for my wife to stop working and stay home with our children until they go to school. It makes things tighter financially, but it was important to us, so we have put ourselves in a position to make that happen while still remaining financially responsible.

I mostly just wanted to point out that to meet the 1/5th of your net income to housing is tough in San Diego for anyone not making over 100K per year – and since the median household income in San Diego is around 70K – that means a lot of people here are pretty much out of luck. Of course anyone who bought prior to 2000 or so has no problem with this assuming they have not refinanced…

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[Artifact]

That is tough in San Diego – I rent a small 2 bedroom apartment and that alone puts me above the 1/5th line – I choose to live in Encinitas, but my rent is only 1500 – so I would have to net 7500/month or 90K/year to meet that requirement – I hopefully will get to that point in another year or two, but I am not there yet.

Yes, I could live in a less expensive area of San Diego, but I work in Encinitas, so the cost of driving/commuting would increase to move and the rent would not be thast much lower. I looked around the last time my lease was up and there was just not anything really worth moving for that would save any money over what we have.

I am married with children, so we do need at least 2 bedrooms, and as someone pointed out earlier, young children cost a lot – my wife stays home with them. My point is not to complain, we choose to live in a smaller place in a nicer area so we can save some money and try to get ahead. It was also important to us for my wife to stop working and stay home with our children until they go to school. It makes things tighter financially, but it was important to us, so we have put ourselves in a position to make that happen while still remaining financially responsible.

I mostly just wanted to point out that to meet the 1/5th of your net income to housing is tough in San Diego for anyone not making over 100K per year – and since the median household income in San Diego is around 70K – that means a lot of people here are pretty much out of luck. Of course anyone who bought prior to 2000 or so has no problem with this assuming they have not refinanced…

[Artifact]

That is tough in San Diego – I rent a small 2 bedroom apartment and that alone puts me above the 1/5th line – I choose to live in Encinitas, but my rent is only 1500 – so I would have to net 7500/month or 90K/year to meet that requirement – I hopefully will get to that point in another year or two, but I am not there yet.

Yes, I could live in a less expensive area of San Diego, but I work in Encinitas, so the cost of driving/commuting would increase to move and the rent would not be thast much lower. I looked around the last time my lease was up and there was just not anything really worth moving for that would save any money over what we have.

I am married with children, so we do need at least 2 bedrooms, and as someone pointed out earlier, young children cost a lot – my wife stays home with them. My point is not to complain, we choose to live in a smaller place in a nicer area so we can save some money and try to get ahead. It was also important to us for my wife to stop working and stay home with our children until they go to school. It makes things tighter financially, but it was important to us, so we have put ourselves in a position to make that happen while still remaining financially responsible.

I mostly just wanted to point out that to meet the 1/5th of your net income to housing is tough in San Diego for anyone not making over 100K per year – and since the median household income in San Diego is around 70K – that means a lot of people here are pretty much out of luck. Of course anyone who bought prior to 2000 or so has no problem with this assuming they have not refinanced…

[Artifact]

That is tough in San Diego – I rent a small 2 bedroom apartment and that alone puts me above the 1/5th line – I choose to live in Encinitas, but my rent is only 1500 – so I would have to net 7500/month or 90K/year to meet that requirement – I hopefully will get to that point in another year or two, but I am not there yet.

Yes, I could live in a less expensive area of San Diego, but I work in Encinitas, so the cost of driving/commuting would increase to move and the rent would not be thast much lower. I looked around the last time my lease was up and there was just not anything really worth moving for that would save any money over what we have.

I am married with children, so we do need at least 2 bedrooms, and as someone pointed out earlier, young children cost a lot – my wife stays home with them. My point is not to complain, we choose to live in a smaller place in a nicer area so we can save some money and try to get ahead. It was also important to us for my wife to stop working and stay home with our children until they go to school. It makes things tighter financially, but it was important to us, so we have put ourselves in a position to make that happen while still remaining financially responsible.

I mostly just wanted to point out that to meet the 1/5th of your net income to housing is tough in San Diego for anyone not making over 100K per year – and since the median household income in San Diego is around 70K – that means a lot of people here are pretty much out of luck. Of course anyone who bought prior to 2000 or so has no problem with this assuming they have not refinanced…

[Artifact]

That is tough in San Diego – I rent a small 2 bedroom apartment and that alone puts me above the 1/5th line – I choose to live in Encinitas, but my rent is only 1500 – so I would have to net 7500/month or 90K/year to meet that requirement – I hopefully will get to that point in another year or two, but I am not there yet.

Yes, I could live in a less expensive area of San Diego, but I work in Encinitas, so the cost of driving/commuting would increase to move and the rent would not be thast much lower. I looked around the last time my lease was up and there was just not anything really worth moving for that would save any money over what we have.

I am married with children, so we do need at least 2 bedrooms, and as someone pointed out earlier, young children cost a lot – my wife stays home with them. My point is not to complain, we choose to live in a smaller place in a nicer area so we can save some money and try to get ahead. It was also important to us for my wife to stop working and stay home with our children until they go to school. It makes things tighter financially, but it was important to us, so we have put ourselves in a position to make that happen while still remaining financially responsible.

I mostly just wanted to point out that to meet the 1/5th of your net income to housing is tough in San Diego for anyone not making over 100K per year – and since the median household income in San Diego is around 70K – that means a lot of people here are pretty much out of luck. Of course anyone who bought prior to 2000 or so has no problem with this assuming they have not refinanced…

[nostradamus]

Mine is 1/10th.

[nostradamus]

Mine is 1/10th.

[nostradamus]

Mine is 1/10th.

[nostradamus]

Mine is 1/10th.

[greensd]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

You’re joking, right?

[greensd]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

You’re joking, right?

[greensd]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

You’re joking, right?

[greensd]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

You’re joking, right?

[NeetaT]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

[NeetaT]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

[NeetaT]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

[NeetaT]

My rule is that your monthly housing cost should be no more than 1/5th of your after tax monthly income.

[no_such_reality]

The problem is written up in plain black and white in the 14th paragraph.

“the family of four depends solely on Michael’s salary to pay the bills: a $2,900 monthly mortgage payment, including taxes and homeowners association dues; a $40,000 school loan; credit card payments; a car loan and their living expenses. ”

[no_such_reality]

The problem is written up in plain black and white in the 14th paragraph.

“the family of four depends solely on Michael’s salary to pay the bills: a $2,900 monthly mortgage payment, including taxes and homeowners association dues; a $40,000 school loan; credit card payments; a car loan and their living expenses. ”

[no_such_reality]

The problem is written up in plain black and white in the 14th paragraph.

“the family of four depends solely on Michael’s salary to pay the bills: a $2,900 monthly mortgage payment, including taxes and homeowners association dues; a $40,000 school loan; credit card payments; a car loan and their living expenses. ”

[no_such_reality]

The problem is written up in plain black and white in the 14th paragraph.

“the family of four depends solely on Michael’s salary to pay the bills: a $2,900 monthly mortgage payment, including taxes and homeowners association dues; a $40,000 school loan; credit card payments; a car loan and their living expenses. ”

[Eugene]

Combined monthly payment on their two loans is only around $2100. That leaves $800 month property tax and HOA fees. Half of what it costs to rent a 3br in the area before they even begin paying off mortgage. Ouch.

[Eugene]

Combined monthly payment on their two loans is only around $2100. That leaves $800 month property tax and HOA fees. Half of what it costs to rent a 3br in the area before they even begin paying off mortgage. Ouch.

[Eugene]

Combined monthly payment on their two loans is only around $2100. That leaves $800 month property tax and HOA fees. Half of what it costs to rent a 3br in the area before they even begin paying off mortgage. Ouch.

[Eugene]

Combined monthly payment on their two loans is only around $2100. That leaves $800 month property tax and HOA fees. Half of what it costs to rent a 3br in the area before they even begin paying off mortgage. Ouch.

[glionel]

I just love this…

“Eventually, the Hornbeeks would like to focus on saving for their retirement; they’d like to be able to give an annual tithe of $5,000; Suzanne would like to get braces; and the couple would especially like to put some extra savings away for their children’s college and wedding funds.”

Especially the part about “their children’s college and wedding funds”…

They are in debt up to their eyeballs, and they are seriously concerned about college and wedding funds…
They are really out of touch. Amazing!

Lionel

[glionel]

I just love this…

“Eventually, the Hornbeeks would like to focus on saving for their retirement; they’d like to be able to give an annual tithe of $5,000; Suzanne would like to get braces; and the couple would especially like to put some extra savings away for their children’s college and wedding funds.”

Especially the part about “their children’s college and wedding funds”…

They are in debt up to their eyeballs, and they are seriously concerned about college and wedding funds…
They are really out of touch. Amazing!

Lionel

[glionel]

I just love this…

“Eventually, the Hornbeeks would like to focus on saving for their retirement; they’d like to be able to give an annual tithe of $5,000; Suzanne would like to get braces; and the couple would especially like to put some extra savings away for their children’s college and wedding funds.”

Especially the part about “their children’s college and wedding funds”…

They are in debt up to their eyeballs, and they are seriously concerned about college and wedding funds…
They are really out of touch. Amazing!

Lionel

[glionel]

I just love this…

“Eventually, the Hornbeeks would like to focus on saving for their retirement; they’d like to be able to give an annual tithe of $5,000; Suzanne would like to get braces; and the couple would especially like to put some extra savings away for their children’s college and wedding funds.”

Especially the part about “their children’s college and wedding funds”…

They are in debt up to their eyeballs, and they are seriously concerned about college and wedding funds…
They are really out of touch. Amazing!

Lionel

[Coronita]

I think 6 things did them in, combined.

1) $40k in college loans

2) Credit card debt (Trying to understand how they got into this)

3) Car loans

4) No savings prior to purchase ==> 2nd mortgage

5) Owning in Buffalo (no appreciation and low salary)

6) Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Yup, seems like a recipe for a disaster. I think the family probably sucks at money management…..But the interesting thing I'd point out. Anyone catch that they are using a "financial manager"?

Financial planner Kevin Barrett was able to renegotiate the loan to give the Hornbeeks breathing room, as somelenders are increasingly willing to do to avoid foreclosing on a property.

Um, ok. If I were them, I would have  have fired the financial planner for letting them get into this mess to begin with. They were knee debt in debt, and it was a good idea to do an interest only? What are they paying the financial planner to plan? Planning how to get further into debt? Geessh. Why does a family that have no assets, no savings need to use a financial planner to begin with? Buy a book from Suzi Orman and follow the book. 

If I were betting, unless something drastic happens..I'd say these folks are going to be foreclosed 3-5 years down the line. They're close to 40. Continuing going down this road, they're going to have nothing when it comes time to retirement/savings. Still need deep in debt across the board, and on top of that need to juggle a mortgage. They're still living a high cost life, and they're already talking about buying kids braces, etc.

Like i said, the banks are bailing out folks, not to really help folks out, but delaying things to bail themselves (the banks) out.

I don't know if anyone thinks this way, but I think the loan forgiveness may be a curse for them. Because they are going to continue sinking they're money into something that isn't an investment, when close to 40, they really should be thinking about maximimize their savings/investments and paying down their high cost debt. This was probably the worst thing that could have happened to this family. I hope I'm wrong, because if it plays out that way, poor kids. 

[Eugene]

Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Kids are most expensive when they are really small (IMHO).

First of all, either one parent stays home with kids, or you have to pay an arm and a leg for their day care. Infant day care in good areas of San Diego is $800/month/kid and up.

Second of all, they eat a lot (considering their size) and infant formula is pretty expensive. One infant can consume $200-300 worth of formula each month.

Older kids (the kind this family has) spend a lot of time in school so both parents can work full-time, eat adult food, don’t outgrow their clothes every 3 months, and basically take care of themselves.

they’re already talking about buying kids braces, etc.

They are talking about buying braces for the WIFE.

I think the loan forgiveness may be a curse for them.

Did you notice the main reason why they chose not to go through foreclosure? They don’t want to pay taxes on $40,000 (possibly higher) difference between the value of their house and the mortgage.

In the next six months, the president will sign the Mortgage Forgiveness Debt Relief Act, their house will lose another $40k of equity, and the outcome of this loan modification will become moot. They will do the math again and probably realize that it makes no sense to keep paying $3000/month interest-only for their condo when they can foreclose, live in it for 6 months rent-free, and then move into a rental apartment for $1800/month.

[Coronita]

esmith,

zzzz I must have been asleep when I read that.

I meant their curse will be Countrywide willing to rewrite their loan…blah blah blah… The point I was trying to make was that it won't help them in the long run, because they are in over their head. 

Misread the braces were for her kids, not the wife. 

 

Anyway, still don't understand why they have a financial advisor that advises them into hole after hole. 

[4plexowner]

hard to imagine that a ‘financial planner’ might also

sell insurance (strictly as a service to his clients)

have a loan broker’s license (strictly as a service to his clients)

any bets?

[Anonymous]

You basically just have to be breathing to be a “Financial Planner”.

The “Tightwad Gazette” books would slap some reality into them and give them much more sound advice. They are free at the library. Probably next to the rows of idiotic Financial Planning/Real Estate get rich books.

I vote for Buffalo. It looks pretty good in the Bruce Almighty movie.

[Anonymous]

You basically just have to be breathing to be a “Financial Planner”.

The “Tightwad Gazette” books would slap some reality into them and give them much more sound advice. They are free at the library. Probably next to the rows of idiotic Financial Planning/Real Estate get rich books.

I vote for Buffalo. It looks pretty good in the Bruce Almighty movie.

[Anonymous]

You basically just have to be breathing to be a “Financial Planner”.

The “Tightwad Gazette” books would slap some reality into them and give them much more sound advice. They are free at the library. Probably next to the rows of idiotic Financial Planning/Real Estate get rich books.

I vote for Buffalo. It looks pretty good in the Bruce Almighty movie.

[Anonymous]

You basically just have to be breathing to be a “Financial Planner”.

The “Tightwad Gazette” books would slap some reality into them and give them much more sound advice. They are free at the library. Probably next to the rows of idiotic Financial Planning/Real Estate get rich books.

I vote for Buffalo. It looks pretty good in the Bruce Almighty movie.

[Anonymous]

You basically just have to be breathing to be a “Financial Planner”.

The “Tightwad Gazette” books would slap some reality into them and give them much more sound advice. They are free at the library. Probably next to the rows of idiotic Financial Planning/Real Estate get rich books.

I vote for Buffalo. It looks pretty good in the Bruce Almighty movie.

[4plexowner]

hard to imagine that a ‘financial planner’ might also

sell insurance (strictly as a service to his clients)

have a loan broker’s license (strictly as a service to his clients)

any bets?

[4plexowner]

hard to imagine that a ‘financial planner’ might also

sell insurance (strictly as a service to his clients)

have a loan broker’s license (strictly as a service to his clients)

any bets?

[4plexowner]

hard to imagine that a ‘financial planner’ might also

sell insurance (strictly as a service to his clients)

have a loan broker’s license (strictly as a service to his clients)

any bets?

[4plexowner]

hard to imagine that a ‘financial planner’ might also

sell insurance (strictly as a service to his clients)

have a loan broker’s license (strictly as a service to his clients)

any bets?

[Coronita]

esmith,

zzzz I must have been asleep when I read that.

I meant their curse will be Countrywide willing to rewrite their loan…blah blah blah… The point I was trying to make was that it won't help them in the long run, because they are in over their head. 

Misread the braces were for her kids, not the wife. 

 

Anyway, still don't understand why they have a financial advisor that advises them into hole after hole. 

[Coronita]

esmith,

zzzz I must have been asleep when I read that.

I meant their curse will be Countrywide willing to rewrite their loan…blah blah blah… The point I was trying to make was that it won't help them in the long run, because they are in over their head. 

Misread the braces were for her kids, not the wife. 

 

Anyway, still don't understand why they have a financial advisor that advises them into hole after hole. 

[Coronita]

esmith,

zzzz I must have been asleep when I read that.

I meant their curse will be Countrywide willing to rewrite their loan…blah blah blah… The point I was trying to make was that it won't help them in the long run, because they are in over their head. 

Misread the braces were for her kids, not the wife. 

 

Anyway, still don't understand why they have a financial advisor that advises them into hole after hole. 

[Coronita]

esmith,

zzzz I must have been asleep when I read that.

I meant their curse will be Countrywide willing to rewrite their loan…blah blah blah… The point I was trying to make was that it won't help them in the long run, because they are in over their head. 

Misread the braces were for her kids, not the wife. 

 

Anyway, still don't understand why they have a financial advisor that advises them into hole after hole. 

[Eugene]

Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Kids are most expensive when they are really small (IMHO).

First of all, either one parent stays home with kids, or you have to pay an arm and a leg for their day care. Infant day care in good areas of San Diego is $800/month/kid and up.

Second of all, they eat a lot (considering their size) and infant formula is pretty expensive. One infant can consume $200-300 worth of formula each month.

Older kids (the kind this family has) spend a lot of time in school so both parents can work full-time, eat adult food, don’t outgrow their clothes every 3 months, and basically take care of themselves.

they’re already talking about buying kids braces, etc.

They are talking about buying braces for the WIFE.

I think the loan forgiveness may be a curse for them.

Did you notice the main reason why they chose not to go through foreclosure? They don’t want to pay taxes on $40,000 (possibly higher) difference between the value of their house and the mortgage.

In the next six months, the president will sign the Mortgage Forgiveness Debt Relief Act, their house will lose another $40k of equity, and the outcome of this loan modification will become moot. They will do the math again and probably realize that it makes no sense to keep paying $3000/month interest-only for their condo when they can foreclose, live in it for 6 months rent-free, and then move into a rental apartment for $1800/month.

[Eugene]

Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Kids are most expensive when they are really small (IMHO).

First of all, either one parent stays home with kids, or you have to pay an arm and a leg for their day care. Infant day care in good areas of San Diego is $800/month/kid and up.

Second of all, they eat a lot (considering their size) and infant formula is pretty expensive. One infant can consume $200-300 worth of formula each month.

Older kids (the kind this family has) spend a lot of time in school so both parents can work full-time, eat adult food, don’t outgrow their clothes every 3 months, and basically take care of themselves.

they’re already talking about buying kids braces, etc.

They are talking about buying braces for the WIFE.

I think the loan forgiveness may be a curse for them.

Did you notice the main reason why they chose not to go through foreclosure? They don’t want to pay taxes on $40,000 (possibly higher) difference between the value of their house and the mortgage.

In the next six months, the president will sign the Mortgage Forgiveness Debt Relief Act, their house will lose another $40k of equity, and the outcome of this loan modification will become moot. They will do the math again and probably realize that it makes no sense to keep paying $3000/month interest-only for their condo when they can foreclose, live in it for 6 months rent-free, and then move into a rental apartment for $1800/month.

[Eugene]

Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Kids are most expensive when they are really small (IMHO).

First of all, either one parent stays home with kids, or you have to pay an arm and a leg for their day care. Infant day care in good areas of San Diego is $800/month/kid and up.

Second of all, they eat a lot (considering their size) and infant formula is pretty expensive. One infant can consume $200-300 worth of formula each month.

Older kids (the kind this family has) spend a lot of time in school so both parents can work full-time, eat adult food, don’t outgrow their clothes every 3 months, and basically take care of themselves.

they’re already talking about buying kids braces, etc.

They are talking about buying braces for the WIFE.

I think the loan forgiveness may be a curse for them.

Did you notice the main reason why they chose not to go through foreclosure? They don’t want to pay taxes on $40,000 (possibly higher) difference between the value of their house and the mortgage.

In the next six months, the president will sign the Mortgage Forgiveness Debt Relief Act, their house will lose another $40k of equity, and the outcome of this loan modification will become moot. They will do the math again and probably realize that it makes no sense to keep paying $3000/month interest-only for their condo when they can foreclose, live in it for 6 months rent-free, and then move into a rental apartment for $1800/month.

[Eugene]

Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Kids are most expensive when they are really small (IMHO).

First of all, either one parent stays home with kids, or you have to pay an arm and a leg for their day care. Infant day care in good areas of San Diego is $800/month/kid and up.

Second of all, they eat a lot (considering their size) and infant formula is pretty expensive. One infant can consume $200-300 worth of formula each month.

Older kids (the kind this family has) spend a lot of time in school so both parents can work full-time, eat adult food, don’t outgrow their clothes every 3 months, and basically take care of themselves.

they’re already talking about buying kids braces, etc.

They are talking about buying braces for the WIFE.

I think the loan forgiveness may be a curse for them.

Did you notice the main reason why they chose not to go through foreclosure? They don’t want to pay taxes on $40,000 (possibly higher) difference between the value of their house and the mortgage.

In the next six months, the president will sign the Mortgage Forgiveness Debt Relief Act, their house will lose another $40k of equity, and the outcome of this loan modification will become moot. They will do the math again and probably realize that it makes no sense to keep paying $3000/month interest-only for their condo when they can foreclose, live in it for 6 months rent-free, and then move into a rental apartment for $1800/month.

[Bugs]

People are assuming these people are operating with ratios similar to ours, but there are some differences. Proeprty taxes in New York are not based off a capped assessment value as they are in California, and energy costs to operate a household and get around in Buffalo are going to be a lot higher than they are here. That adds significantly to their budget.

[Bugs]

People are assuming these people are operating with ratios similar to ours, but there are some differences. Proeprty taxes in New York are not based off a capped assessment value as they are in California, and energy costs to operate a household and get around in Buffalo are going to be a lot higher than they are here. That adds significantly to their budget.

[Bugs]

People are assuming these people are operating with ratios similar to ours, but there are some differences. Proeprty taxes in New York are not based off a capped assessment value as they are in California, and energy costs to operate a household and get around in Buffalo are going to be a lot higher than they are here. That adds significantly to their budget.

[Bugs]

People are assuming these people are operating with ratios similar to ours, but there are some differences. Proeprty taxes in New York are not based off a capped assessment value as they are in California, and energy costs to operate a household and get around in Buffalo are going to be a lot higher than they are here. That adds significantly to their budget.

[Bugs]

People are assuming these people are operating with ratios similar to ours, but there are some differences. Proeprty taxes in New York are not based off a capped assessment value as they are in California, and energy costs to operate a household and get around in Buffalo are going to be a lot higher than they are here. That adds significantly to their budget.

[Coronita]

I think 6 things did them in, combined.

1) $40k in college loans

2) Credit card debt (Trying to understand how they got into this)

3) Car loans

4) No savings prior to purchase ==> 2nd mortgage

5) Owning in Buffalo (no appreciation and low salary)

6) Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Yup, seems like a recipe for a disaster. I think the family probably sucks at money management…..But the interesting thing I'd point out. Anyone catch that they are using a "financial manager"?

Financial planner Kevin Barrett was able to renegotiate the loan to give the Hornbeeks breathing room, as somelenders are increasingly willing to do to avoid foreclosing on a property.

Um, ok. If I were them, I would have  have fired the financial planner for letting them get into this mess to begin with. They were knee debt in debt, and it was a good idea to do an interest only? What are they paying the financial planner to plan? Planning how to get further into debt? Geessh. Why does a family that have no assets, no savings need to use a financial planner to begin with? Buy a book from Suzi Orman and follow the book. 

If I were betting, unless something drastic happens..I'd say these folks are going to be foreclosed 3-5 years down the line. They're close to 40. Continuing going down this road, they're going to have nothing when it comes time to retirement/savings. Still need deep in debt across the board, and on top of that need to juggle a mortgage. They're still living a high cost life, and they're already talking about buying kids braces, etc.

Like i said, the banks are bailing out folks, not to really help folks out, but delaying things to bail themselves (the banks) out.

I don't know if anyone thinks this way, but I think the loan forgiveness may be a curse for them. Because they are going to continue sinking they're money into something that isn't an investment, when close to 40, they really should be thinking about maximimize their savings/investments and paying down their high cost debt. This was probably the worst thing that could have happened to this family. I hope I'm wrong, because if it plays out that way, poor kids. 

[Coronita]

I think 6 things did them in, combined.

1) $40k in college loans

2) Credit card debt (Trying to understand how they got into this)

3) Car loans

4) No savings prior to purchase ==> 2nd mortgage

5) Owning in Buffalo (no appreciation and low salary)

6) Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Yup, seems like a recipe for a disaster. I think the family probably sucks at money management…..But the interesting thing I'd point out. Anyone catch that they are using a "financial manager"?

Financial planner Kevin Barrett was able to renegotiate the loan to give the Hornbeeks breathing room, as somelenders are increasingly willing to do to avoid foreclosing on a property.

Um, ok. If I were them, I would have  have fired the financial planner for letting them get into this mess to begin with. They were knee debt in debt, and it was a good idea to do an interest only? What are they paying the financial planner to plan? Planning how to get further into debt? Geessh. Why does a family that have no assets, no savings need to use a financial planner to begin with? Buy a book from Suzi Orman and follow the book. 

If I were betting, unless something drastic happens..I'd say these folks are going to be foreclosed 3-5 years down the line. They're close to 40. Continuing going down this road, they're going to have nothing when it comes time to retirement/savings. Still need deep in debt across the board, and on top of that need to juggle a mortgage. They're still living a high cost life, and they're already talking about buying kids braces, etc.

Like i said, the banks are bailing out folks, not to really help folks out, but delaying things to bail themselves (the banks) out.

I don't know if anyone thinks this way, but I think the loan forgiveness may be a curse for them. Because they are going to continue sinking they're money into something that isn't an investment, when close to 40, they really should be thinking about maximimize their savings/investments and paying down their high cost debt. This was probably the worst thing that could have happened to this family. I hope I'm wrong, because if it plays out that way, poor kids. 

[Coronita]

I think 6 things did them in, combined.

1) $40k in college loans

2) Credit card debt (Trying to understand how they got into this)

3) Car loans

4) No savings prior to purchase ==> 2nd mortgage

5) Owning in Buffalo (no appreciation and low salary)

6) Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Yup, seems like a recipe for a disaster. I think the family probably sucks at money management…..But the interesting thing I'd point out. Anyone catch that they are using a "financial manager"?

Financial planner Kevin Barrett was able to renegotiate the loan to give the Hornbeeks breathing room, as somelenders are increasingly willing to do to avoid foreclosing on a property.

Um, ok. If I were them, I would have  have fired the financial planner for letting them get into this mess to begin with. They were knee debt in debt, and it was a good idea to do an interest only? What are they paying the financial planner to plan? Planning how to get further into debt? Geessh. Why does a family that have no assets, no savings need to use a financial planner to begin with? Buy a book from Suzi Orman and follow the book. 

If I were betting, unless something drastic happens..I'd say these folks are going to be foreclosed 3-5 years down the line. They're close to 40. Continuing going down this road, they're going to have nothing when it comes time to retirement/savings. Still need deep in debt across the board, and on top of that need to juggle a mortgage. They're still living a high cost life, and they're already talking about buying kids braces, etc.

Like i said, the banks are bailing out folks, not to really help folks out, but delaying things to bail themselves (the banks) out.

I don't know if anyone thinks this way, but I think the loan forgiveness may be a curse for them. Because they are going to continue sinking they're money into something that isn't an investment, when close to 40, they really should be thinking about maximimize their savings/investments and paying down their high cost debt. This was probably the worst thing that could have happened to this family. I hope I'm wrong, because if it plays out that way, poor kids. 

[Coronita]

I think 6 things did them in, combined.

1) $40k in college loans

2) Credit card debt (Trying to understand how they got into this)

3) Car loans

4) No savings prior to purchase ==> 2nd mortgage

5) Owning in Buffalo (no appreciation and low salary)

6) Expense of 2 kids (judging by the picture, they look older and are probably consuming a good deal of the income).

Yup, seems like a recipe for a disaster. I think the family probably sucks at money management…..But the interesting thing I'd point out. Anyone catch that they are using a "financial manager"?

Financial planner Kevin Barrett was able to renegotiate the loan to give the Hornbeeks breathing room, as somelenders are increasingly willing to do to avoid foreclosing on a property.

Um, ok. If I were them, I would have  have fired the financial planner for letting them get into this mess to begin with. They were knee debt in debt, and it was a good idea to do an interest only? What are they paying the financial planner to plan? Planning how to get further into debt? Geessh. Why does a family that have no assets, no savings need to use a financial planner to begin with? Buy a book from Suzi Orman and follow the book. 

If I were betting, unless something drastic happens..I'd say these folks are going to be foreclosed 3-5 years down the line. They're close to 40. Continuing going down this road, they're going to have nothing when it comes time to retirement/savings. Still need deep in debt across the board, and on top of that need to juggle a mortgage. They're still living a high cost life, and they're already talking about buying kids braces, etc.

Like i said, the banks are bailing out folks, not to really help folks out, but delaying things to bail themselves (the banks) out.

I don't know if anyone thinks this way, but I think the loan forgiveness may be a curse for them. Because they are going to continue sinking they're money into something that isn't an investment, when close to 40, they really should be thinking about maximimize their savings/investments and paying down their high cost debt. This was probably the worst thing that could have happened to this family. I hope I'm wrong, because if it plays out that way, poor kids. 

[mixxalot]

These folks are idiots!!! Pure and simple and shows how dumb even engineers and computer people can be. I would love a new house and car but not until I had no debt and savings would I even consider it.

[drunkle]

being smart and being skilled are completely different.

[sdrealtor]

Artifact
Didn’t know we were neighbors. Glad to hear it.

sdr

[ocrenter]

well, here’s my take on the subject, enjoy!

http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[HereWeGo]

OC-

Do you have specifics on the loan balances? What is the balance after the HELOC? Do they owe 440K or 525K?

It seems they have not paid down any principal.

[Eugene]

Here’s the best way to get all numbers to add up –
$352k IO first @ 4.97% ($1458)
$85.7k 15-year fixed second @ 8% ($819)
$258/mo HOA
$4587 property tax ($382)
—
$2917/month cost.

They would have paid down $6.5k of principal on their second mortgage.

[ocrenter]

esmith, thanks for the breakdown, I revised some of my numbers on the post.

[Eugene]

You’re welcome.

You’re also missing the fact that their current state of affairs generates ~$500/month in mortgage interest deduction. They wouldn’t really save all that much money by renting.

[ocrenter]

true, was thinking about that later on today.

what these folks really need to do is go on a strict budget and cut out any unnecessary expenses. if that doesn’t work, there’s always Arizona.

[NotCranky]

I have a hard time understanding a family having car payments when they can’t afford their house. Just get reliable transportation paid for and then buy the house if it is going to be any kind of a stretch.

[NotCranky]

I have a hard time understanding a family having car payments when they can’t afford their house. Just get reliable transportation paid for and then buy the house if it is going to be any kind of a stretch.

[NotCranky]

I have a hard time understanding a family having car payments when they can’t afford their house. Just get reliable transportation paid for and then buy the house if it is going to be any kind of a stretch.

[NotCranky]

I have a hard time understanding a family having car payments when they can’t afford their house. Just get reliable transportation paid for and then buy the house if it is going to be any kind of a stretch.

[NotCranky]

I have a hard time understanding a family having car payments when they can’t afford their house. Just get reliable transportation paid for and then buy the house if it is going to be any kind of a stretch.

[NotCranky]

I have a hard time understanding a family having car payments when they can’t afford their house. Just get reliable transportation paid for and then buy the house if it is going to be any kind of a stretch.

[ocrenter]

true, was thinking about that later on today.

what these folks really need to do is go on a strict budget and cut out any unnecessary expenses. if that doesn’t work, there’s always Arizona.

[ocrenter]

true, was thinking about that later on today.

what these folks really need to do is go on a strict budget and cut out any unnecessary expenses. if that doesn’t work, there’s always Arizona.

[ocrenter]

true, was thinking about that later on today.

what these folks really need to do is go on a strict budget and cut out any unnecessary expenses. if that doesn’t work, there’s always Arizona.

[ocrenter]

true, was thinking about that later on today.

what these folks really need to do is go on a strict budget and cut out any unnecessary expenses. if that doesn’t work, there’s always Arizona.

[ocrenter]

true, was thinking about that later on today.

what these folks really need to do is go on a strict budget and cut out any unnecessary expenses. if that doesn’t work, there’s always Arizona.

[Eugene]

You’re welcome.

You’re also missing the fact that their current state of affairs generates ~$500/month in mortgage interest deduction. They wouldn’t really save all that much money by renting.

[Eugene]

You’re welcome.

You’re also missing the fact that their current state of affairs generates ~$500/month in mortgage interest deduction. They wouldn’t really save all that much money by renting.

[Eugene]

You’re welcome.

You’re also missing the fact that their current state of affairs generates ~$500/month in mortgage interest deduction. They wouldn’t really save all that much money by renting.

[Eugene]

You’re welcome.

You’re also missing the fact that their current state of affairs generates ~$500/month in mortgage interest deduction. They wouldn’t really save all that much money by renting.

[ocrenter]

esmith, thanks for the breakdown, I revised some of my numbers on the post.

[ocrenter]

esmith, thanks for the breakdown, I revised some of my numbers on the post.

[ocrenter]

esmith, thanks for the breakdown, I revised some of my numbers on the post.

[ocrenter]

esmith, thanks for the breakdown, I revised some of my numbers on the post.

[Eugene]

Here’s the best way to get all numbers to add up –
$352k IO first @ 4.97% ($1458)
$85.7k 15-year fixed second @ 8% ($819)
$258/mo HOA
$4587 property tax ($382)
—
$2917/month cost.

They would have paid down $6.5k of principal on their second mortgage.

[Eugene]

Here’s the best way to get all numbers to add up –
$352k IO first @ 4.97% ($1458)
$85.7k 15-year fixed second @ 8% ($819)
$258/mo HOA
$4587 property tax ($382)
—
$2917/month cost.

They would have paid down $6.5k of principal on their second mortgage.

[Eugene]

Here’s the best way to get all numbers to add up –
$352k IO first @ 4.97% ($1458)
$85.7k 15-year fixed second @ 8% ($819)
$258/mo HOA
$4587 property tax ($382)
—
$2917/month cost.

They would have paid down $6.5k of principal on their second mortgage.

[Eugene]

Here’s the best way to get all numbers to add up –
$352k IO first @ 4.97% ($1458)
$85.7k 15-year fixed second @ 8% ($819)
$258/mo HOA
$4587 property tax ($382)
—
$2917/month cost.

They would have paid down $6.5k of principal on their second mortgage.

[HereWeGo]

OC-

Do you have specifics on the loan balances? What is the balance after the HELOC? Do they owe 440K or 525K?

It seems they have not paid down any principal.

[HereWeGo]

OC-

Do you have specifics on the loan balances? What is the balance after the HELOC? Do they owe 440K or 525K?

It seems they have not paid down any principal.

[HereWeGo]

OC-

Do you have specifics on the loan balances? What is the balance after the HELOC? Do they owe 440K or 525K?

It seems they have not paid down any principal.

[HereWeGo]

OC-

Do you have specifics on the loan balances? What is the balance after the HELOC? Do they owe 440K or 525K?

It seems they have not paid down any principal.

[Ex-SD]

ocrenter posted the link to the WHOLE story………….not the puff-piece that the Union Tribune published.. Why couldn’t the UT have discovered the rest of the story?
Here it is again: http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[Ex-SD]

ocrenter posted the link to the WHOLE story………….not the puff-piece that the Union Tribune published.. Why couldn’t the UT have discovered the rest of the story?
Here it is again: http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[Ex-SD]

ocrenter posted the link to the WHOLE story………….not the puff-piece that the Union Tribune published.. Why couldn’t the UT have discovered the rest of the story?
Here it is again: http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[Ex-SD]

ocrenter posted the link to the WHOLE story………….not the puff-piece that the Union Tribune published.. Why couldn’t the UT have discovered the rest of the story?
Here it is again: http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[Ex-SD]

ocrenter posted the link to the WHOLE story………….not the puff-piece that the Union Tribune published.. Why couldn’t the UT have discovered the rest of the story?
Here it is again: http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[ocrenter]

well, here’s my take on the subject, enjoy!

http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[ocrenter]

well, here’s my take on the subject, enjoy!

http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[ocrenter]

well, here’s my take on the subject, enjoy!

http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[ocrenter]

well, here’s my take on the subject, enjoy!

http://bubbletracking.blogspot.com/2007/12/more-financial-malpractice-from-union.html

[sdrealtor]

Artifact
Didn’t know we were neighbors. Glad to hear it.

sdr

[sdrealtor]

Artifact
Didn’t know we were neighbors. Glad to hear it.

sdr

[sdrealtor]

Artifact
Didn’t know we were neighbors. Glad to hear it.

sdr

[sdrealtor]

Artifact
Didn’t know we were neighbors. Glad to hear it.

sdr

[drunkle]

being smart and being skilled are completely different.

[drunkle]

being smart and being skilled are completely different.

[drunkle]

being smart and being skilled are completely different.

[drunkle]

being smart and being skilled are completely different.

[mixxalot]

These folks are idiots!!! Pure and simple and shows how dumb even engineers and computer people can be. I would love a new house and car but not until I had no debt and savings would I even consider it.

[mixxalot]

These folks are idiots!!! Pure and simple and shows how dumb even engineers and computer people can be. I would love a new house and car but not until I had no debt and savings would I even consider it.

[mixxalot]

These folks are idiots!!! Pure and simple and shows how dumb even engineers and computer people can be. I would love a new house and car but not until I had no debt and savings would I even consider it.

[mixxalot]

These folks are idiots!!! Pure and simple and shows how dumb even engineers and computer people can be. I would love a new house and car but not until I had no debt and savings would I even consider it.

[Author]

Posts