Poor six-figure family

[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!

[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. 

[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.

[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.

[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. 

[Author]

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