The Upside-Down family: a scenario

[Anonymous]

I still keep an eye on my old tract house neighborhood in French Valley. My next door neighbor moved in within about 1 month of me – both of us moving into new houses. He put really tacky poorly installed (did it himself) $1 ceramic tile throughout the whole house upstairs and down. About 6 months in, he mentioned that the sun was bleaching his carpets. Turned out he couldn’t afford window coverings until he could get the first HELOC 1 year after purchase. Soon after they had a boat and 2 off road vehicles (the kind for one person only).

The zillow satellite photo is reasonably new (because I can see the people who bought our house changed the landscaping some) and the next door neighbors still have their huge dirt backyard without so much as a bit of concrete or grass for the kids to play on. They bought the house in 2002, so if they hadn’t HELOC’d, they’d be up $175k or so. I’ll be watching to see if they eventually sell and how low the prices go around there. They are around 2004 prices now.

[DaCounselor]

1) They will not owe any tax on the shortfall if the lender forecloses and sells the property for less than what is owed.

2) The best play would be to get themselves into a cheap rental and knock out the CC debt as opposed to going BK. Ironically, they could probably knock out a nice chunk of that debt by stopping all housing payments and sending that $$ to Visa…

3) This type of scenario should increase as more loans are re-cast and property values continue to fall. At some point in time, if values fall enough, I would expect that even folks who can afford the re-cast may walk away if the disparity between ownership and renting is large enough to convince them to crash their credit.

[DaCounselor]

1) They will not owe any tax on the shortfall if the lender forecloses and sells the property for less than what is owed.

2) The best play would be to get themselves into a cheap rental and knock out the CC debt as opposed to going BK. Ironically, they could probably knock out a nice chunk of that debt by stopping all housing payments and sending that $$ to Visa…

3) This type of scenario should increase as more loans are re-cast and property values continue to fall. At some point in time, if values fall enough, I would expect that even folks who can afford the re-cast may walk away if the disparity between ownership and renting is large enough to convince them to crash their credit.

[DaCounselor]

1) They will not owe any tax on the shortfall if the lender forecloses and sells the property for less than what is owed.

2) The best play would be to get themselves into a cheap rental and knock out the CC debt as opposed to going BK. Ironically, they could probably knock out a nice chunk of that debt by stopping all housing payments and sending that $$ to Visa…

3) This type of scenario should increase as more loans are re-cast and property values continue to fall. At some point in time, if values fall enough, I would expect that even folks who can afford the re-cast may walk away if the disparity between ownership and renting is large enough to convince them to crash their credit.

[novice1027]

Speaking of nice rides, (not the women!) I had a garage sale on Saturday and was stunned at how many non-english speaking folks fallling out of their Escalades, Durango’s, and Exprdition’s.
I can’t figure out how they pay for them, unless the entire group that fell out of the vehichle pooled their $$ to come up with the payment.

[novice1027]

Speaking of nice rides, (not the women!) I had a garage sale on Saturday and was stunned at how many non-english speaking folks fallling out of their Escalades, Durango’s, and Exprdition’s.
I can’t figure out how they pay for them, unless the entire group that fell out of the vehichle pooled their $$ to come up with the payment.

[novice1027]

Speaking of nice rides, (not the women!) I had a garage sale on Saturday and was stunned at how many non-english speaking folks fallling out of their Escalades, Durango’s, and Exprdition’s.
I can’t figure out how they pay for them, unless the entire group that fell out of the vehichle pooled their $$ to come up with the payment.

[NotCranky]

“I can’t figure out how they pay for them, unless the entire group that fell out of the vehichle pooled their $$ to come up with the payment.”

I think you don’t have a very multi-cultural life experience. The are many logical reasons,including the one you mention, for “non-english” speakers to have nice cars. Anybody can enter the blue collar world easily. Don’t hard working, english speaking, blue collar, people have nice cars? The possibiities go on in many directions from there.

[NotCranky]

“I can’t figure out how they pay for them, unless the entire group that fell out of the vehichle pooled their $$ to come up with the payment.”

I think you don’t have a very multi-cultural life experience. The are many logical reasons,including the one you mention, for “non-english” speakers to have nice cars. Anybody can enter the blue collar world easily. Don’t hard working, english speaking, blue collar, people have nice cars? The possibiities go on in many directions from there.

[NotCranky]

“I can’t figure out how they pay for them, unless the entire group that fell out of the vehichle pooled their $$ to come up with the payment.”

I think you don’t have a very multi-cultural life experience. The are many logical reasons,including the one you mention, for “non-english” speakers to have nice cars. Anybody can enter the blue collar world easily. Don’t hard working, english speaking, blue collar, people have nice cars? The possibiities go on in many directions from there.

[novice1027]

Firstly,
Don’t jump to any conculsion of my “muliti-cultural life experience” since you have NO idea what race/culture myself or my family are and/or live. You are way off on that one.

Whether someone speaks english or not is not really the just of my post. I don’t care if one speaks 5 languages or one, I still find it hard to believe that so many people drive around in 50K+ vehicles, on the average wage in this town.

Yes,I see many “hard working english speaking, blue collar people” and I also see very young people of all races driving around in these types of vehicles, and again I am astonished that the average joe can REALLY afford them. Drive by the high school down the street, and they are parked everywhere.

That was my point!

[novice1027]

Firstly,
Don’t jump to any conculsion of my “muliti-cultural life experience” since you have NO idea what race/culture myself or my family are and/or live. You are way off on that one.

Whether someone speaks english or not is not really the just of my post. I don’t care if one speaks 5 languages or one, I still find it hard to believe that so many people drive around in 50K+ vehicles, on the average wage in this town.

Yes,I see many “hard working english speaking, blue collar people” and I also see very young people of all races driving around in these types of vehicles, and again I am astonished that the average joe can REALLY afford them. Drive by the high school down the street, and they are parked everywhere.

That was my point!

[novice1027]

Firstly,
Don’t jump to any conculsion of my “muliti-cultural life experience” since you have NO idea what race/culture myself or my family are and/or live. You are way off on that one.

Whether someone speaks english or not is not really the just of my post. I don’t care if one speaks 5 languages or one, I still find it hard to believe that so many people drive around in 50K+ vehicles, on the average wage in this town.

Yes,I see many “hard working english speaking, blue collar people” and I also see very young people of all races driving around in these types of vehicles, and again I am astonished that the average joe can REALLY afford them. Drive by the high school down the street, and they are parked everywhere.

That was my point!

[FormerOwner]

irvinesinglemom,

Don’t despair; not ALL guys in So Cal are superficial. You sound perfect. I’m happily married but I’m sure there are a few decent single guys still out there, but I agree they’re probably the minority nowadays. By they way, if I thought you were a lesbian that would make me even more interested!

[FormerOwner]

irvinesinglemom,

Don’t despair; not ALL guys in So Cal are superficial. You sound perfect. I’m happily married but I’m sure there are a few decent single guys still out there, but I agree they’re probably the minority nowadays. By they way, if I thought you were a lesbian that would make me even more interested!

[Author]

Posts