Poor six-figure family

[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.

[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?

[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.

[Author]

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