the equity answer

[lostkitty]

I’ve seen a lot of people do this in Coronado – roll equity into bigger place. Problem arises when they cant pay the taxes on that new place! Bought a 300k home, sold it for 800k, bought a million+ home with ARM, didnt figure their incomes would stagnate. Taxes at $1000 a month can become a huge problem.

[lostkitty]

I’ve seen a lot of people do this in Coronado – roll equity into bigger place. Problem arises when they cant pay the taxes on that new place! Bought a 300k home, sold it for 800k, bought a million+ home with ARM, didnt figure their incomes would stagnate. Taxes at $1000 a month can become a huge problem.

[drunkle]

if i had access to everyone’s credit data, i bet i could answer the question. i bet i could answer alot of questions. i’d be freaking fortune teller…

[drunkle]

if i had access to everyone’s credit data, i bet i could answer the question. i bet i could answer alot of questions. i’d be freaking fortune teller…

[Bugs]

My wife’s best friend is a consumer loan officer for one of the region’s biggest credit unions. She tells stories of indebtedness among her borrowers you wouldn’t believe. I’ve heard similar comments from several of my clients who are commercial lending officers at some of the community banks in town.

You know the commercial where the guys gives you a tour of his great home, his cars, his new pool and delivers that “and I’m in debt up the my eyeballs” line? Apparently there are a LOT of people like that running around town living paycheck to paycheck.

Even some of the “Greatest Generation” who are now retired are treading on thin ice, maxing out multiple credit cards and buying new cars every couple years. The SoCal lifestyle costs a lot of money to maintain.

[Bugs]

My wife’s best friend is a consumer loan officer for one of the region’s biggest credit unions. She tells stories of indebtedness among her borrowers you wouldn’t believe. I’ve heard similar comments from several of my clients who are commercial lending officers at some of the community banks in town.

You know the commercial where the guys gives you a tour of his great home, his cars, his new pool and delivers that “and I’m in debt up the my eyeballs” line? Apparently there are a LOT of people like that running around town living paycheck to paycheck.

Even some of the “Greatest Generation” who are now retired are treading on thin ice, maxing out multiple credit cards and buying new cars every couple years. The SoCal lifestyle costs a lot of money to maintain.

[Anonymous]

One thing that has always bugged me: if they were indeed “The Greatest Generation,” how did they raise so many lousy kids (60s kids/Baby Boomers)? Inquiring minds want to know.

[Anonymous]

One thing that has always bugged me: if they were indeed “The Greatest Generation,” how did they raise so many lousy kids (60s kids/Baby Boomers)? Inquiring minds want to know.

[cr]

I think the equity thing is certainly true in my area (LA-SFV) but in all honesty I think more people spent more of it, than reinvested all of it into a house.

A lot put back it into their house with upgrades, remodels, and ever complete rebuilds, but I really think more people bought new cars, second homes, went on vacations, bought motorhomes, jet skis, or yellow H2s.

You have to understand the mindset most people had, and were brainwashed to believe by every now defunct subprime lender of the past 5 years. In general they truly believed their 300% appreciation was normal. As if they deserved it. Not only that, many believed it would continue.

It sounds so asinine to think now, but people actually thought that. A lof of people probably could have afforded their homes had they used all their equity, because homes were still higher than they could have otherwise afforded.

Enter exotic mortgages.

Now people can buy that house, and take out $150,000 to start a business, buy a car, remodel, eat a very very very expensive dinner, and STILL have a lower payment.

If you look at the mindset that is only just starting to change, the equity bubble made people feel rich, so they lived like it. Only problem was they have to pay that money back.

[cr]

I think the equity thing is certainly true in my area (LA-SFV) but in all honesty I think more people spent more of it, than reinvested all of it into a house.

A lot put back it into their house with upgrades, remodels, and ever complete rebuilds, but I really think more people bought new cars, second homes, went on vacations, bought motorhomes, jet skis, or yellow H2s.

You have to understand the mindset most people had, and were brainwashed to believe by every now defunct subprime lender of the past 5 years. In general they truly believed their 300% appreciation was normal. As if they deserved it. Not only that, many believed it would continue.

It sounds so asinine to think now, but people actually thought that. A lof of people probably could have afforded their homes had they used all their equity, because homes were still higher than they could have otherwise afforded.

Enter exotic mortgages.

Now people can buy that house, and take out $150,000 to start a business, buy a car, remodel, eat a very very very expensive dinner, and STILL have a lower payment.

If you look at the mindset that is only just starting to change, the equity bubble made people feel rich, so they lived like it. Only problem was they have to pay that money back.

[4runner]

One thing that has always bugged me: if they were indeed “The Greatest Generation,” how did they raise so many lousy kids (60s kids/Baby Boomers)? Inquiring minds want to know.

The greatest generation spoiled their kids rotten. Think about it: you are in a fox hole, under fire, soaking wet, and eating dirt. You don’t wish for a McMansion, a 50 in plasma, or a 1200 sq. ft. SUV. You just wish for a quiet little home on a quiet little street with a loving woman and a couple of rugrats. You promise to live your life for the little woman and the rugrats– to do everything you can for them if you just make it out of hell alive.

You then make it out of hell alive, spoil your kids rotten, and get told that you don’t understand anything 20 years later. It is a little pathetic, actually

[4runner]

One thing that has always bugged me: if they were indeed “The Greatest Generation,” how did they raise so many lousy kids (60s kids/Baby Boomers)? Inquiring minds want to know.

The greatest generation spoiled their kids rotten. Think about it: you are in a fox hole, under fire, soaking wet, and eating dirt. You don’t wish for a McMansion, a 50 in plasma, or a 1200 sq. ft. SUV. You just wish for a quiet little home on a quiet little street with a loving woman and a couple of rugrats. You promise to live your life for the little woman and the rugrats– to do everything you can for them if you just make it out of hell alive.

You then make it out of hell alive, spoil your kids rotten, and get told that you don’t understand anything 20 years later. It is a little pathetic, actually

[Nancy_s soothsayer]

Excellent points, cooprider14. That was a great read.

[Nancy_s soothsayer]

Excellent points, cooprider14. That was a great read.

[Author]

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