What is wealth?

[4plexowner]

I suspect that there are many people in San Diego who maintained their ‘rich and famous’ lifestyles by sucking the equity out of their real estate as the bubble grew

with growing equity and fog-a-mirror loans available, they refi-d every 9 to 18 months pulling out some or all of the available equity

now they are upside-down in a fancy house wondering how they will continue living the lifestyle they have become accustomed to

they have resources to draw on – retirement savings, investments, family, credit, etc so they are able to hold on longer than others might

their housing value is too high to qualify for the current govt-subsidized mortgages so their only refi option is an expensive jumbo loan from a private lender, assuming they can find one – and assuming they can address the underwater issue by negotiating the loan principle down or by bringing cash to the refi table

also, many of these ‘rich and famous’ people have complicated finances with no W-2 income – this is another challenge to obtaining a mortgage today

an old saying comes to mind, something about only finding out who is swimming naked when the tide goes out

I suspect there are many naked swimmers in La Jolla, Pt Loma, Mission Hills, etc and the tide is receding …

[UCGal]

I’m sorry your family is dealing with this.

[UCGal]

I’m sorry your family is dealing with this.

[UCGal]

I’m sorry your family is dealing with this.

[UCGal]

I’m sorry your family is dealing with this.

[UCGal]

I’m sorry your family is dealing with this.

[Coronita]

[quote=NewtoSanDiego]Well, a short update. A bit sobering for me.

My bro and law and sister are now getting a divorce.

The financial strain must have been too much.

I provided moral support thru the past few months, but no financial. After hearing how bad their financial situation was, I figured it was throwing good money after bad.

As a final kick in the gut, my bro-in-law had his BMW repo’ed. He apparently tried to hide it down the street. Got me wondering how many BMW driver on the streets are actual financial basket cases.

Also got me wondering what percent of divorces these days really have their root cause in financial distress. Is there a correlationb between foreclosure rate and divorce rate?

Sad NewtoSanDiego[/quote]

Apparently, quite a bit. My understanding a lot of divorces trickled in in the beginning of 2010, and most are financial related. I don’t mean to prod, but have your sis and bro in law considered marriage counseling? I just think that there are many reasons for why a divorce would be the answer(cheating spouse/unfaithful/etc)…But it just seems like money shouldn’t be one of them. Money problems are solvable in the longer term, my opinion. Seems like a real waste to let it wreck a marriage/family. (There are plenty of other possibilities for wrecking a marriage, this shouldn’t be one of them 🙁 ).

[Coronita]

[quote=NewtoSanDiego]Well, a short update. A bit sobering for me.

My bro and law and sister are now getting a divorce.

The financial strain must have been too much.

I provided moral support thru the past few months, but no financial. After hearing how bad their financial situation was, I figured it was throwing good money after bad.

As a final kick in the gut, my bro-in-law had his BMW repo’ed. He apparently tried to hide it down the street. Got me wondering how many BMW driver on the streets are actual financial basket cases.

Also got me wondering what percent of divorces these days really have their root cause in financial distress. Is there a correlationb between foreclosure rate and divorce rate?

Sad NewtoSanDiego[/quote]

Apparently, quite a bit. My understanding a lot of divorces trickled in in the beginning of 2010, and most are financial related. I don’t mean to prod, but have your sis and bro in law considered marriage counseling? I just think that there are many reasons for why a divorce would be the answer(cheating spouse/unfaithful/etc)…But it just seems like money shouldn’t be one of them. Money problems are solvable in the longer term, my opinion. Seems like a real waste to let it wreck a marriage/family. (There are plenty of other possibilities for wrecking a marriage, this shouldn’t be one of them 🙁 ).

[Coronita]

[quote=NewtoSanDiego]Well, a short update. A bit sobering for me.

My bro and law and sister are now getting a divorce.

The financial strain must have been too much.

I provided moral support thru the past few months, but no financial. After hearing how bad their financial situation was, I figured it was throwing good money after bad.

As a final kick in the gut, my bro-in-law had his BMW repo’ed. He apparently tried to hide it down the street. Got me wondering how many BMW driver on the streets are actual financial basket cases.

Also got me wondering what percent of divorces these days really have their root cause in financial distress. Is there a correlationb between foreclosure rate and divorce rate?

Sad NewtoSanDiego[/quote]

Apparently, quite a bit. My understanding a lot of divorces trickled in in the beginning of 2010, and most are financial related. I don’t mean to prod, but have your sis and bro in law considered marriage counseling? I just think that there are many reasons for why a divorce would be the answer(cheating spouse/unfaithful/etc)…But it just seems like money shouldn’t be one of them. Money problems are solvable in the longer term, my opinion. Seems like a real waste to let it wreck a marriage/family. (There are plenty of other possibilities for wrecking a marriage, this shouldn’t be one of them 🙁 ).

[Coronita]

[quote=NewtoSanDiego]Well, a short update. A bit sobering for me.

My bro and law and sister are now getting a divorce.

The financial strain must have been too much.

I provided moral support thru the past few months, but no financial. After hearing how bad their financial situation was, I figured it was throwing good money after bad.

As a final kick in the gut, my bro-in-law had his BMW repo’ed. He apparently tried to hide it down the street. Got me wondering how many BMW driver on the streets are actual financial basket cases.

Also got me wondering what percent of divorces these days really have their root cause in financial distress. Is there a correlationb between foreclosure rate and divorce rate?

Sad NewtoSanDiego[/quote]

Apparently, quite a bit. My understanding a lot of divorces trickled in in the beginning of 2010, and most are financial related. I don’t mean to prod, but have your sis and bro in law considered marriage counseling? I just think that there are many reasons for why a divorce would be the answer(cheating spouse/unfaithful/etc)…But it just seems like money shouldn’t be one of them. Money problems are solvable in the longer term, my opinion. Seems like a real waste to let it wreck a marriage/family. (There are plenty of other possibilities for wrecking a marriage, this shouldn’t be one of them 🙁 ).

[Coronita]

[quote=NewtoSanDiego]Well, a short update. A bit sobering for me.

My bro and law and sister are now getting a divorce.

The financial strain must have been too much.

I provided moral support thru the past few months, but no financial. After hearing how bad their financial situation was, I figured it was throwing good money after bad.

As a final kick in the gut, my bro-in-law had his BMW repo’ed. He apparently tried to hide it down the street. Got me wondering how many BMW driver on the streets are actual financial basket cases.

Also got me wondering what percent of divorces these days really have their root cause in financial distress. Is there a correlationb between foreclosure rate and divorce rate?

Sad NewtoSanDiego[/quote]

Apparently, quite a bit. My understanding a lot of divorces trickled in in the beginning of 2010, and most are financial related. I don’t mean to prod, but have your sis and bro in law considered marriage counseling? I just think that there are many reasons for why a divorce would be the answer(cheating spouse/unfaithful/etc)…But it just seems like money shouldn’t be one of them. Money problems are solvable in the longer term, my opinion. Seems like a real waste to let it wreck a marriage/family. (There are plenty of other possibilities for wrecking a marriage, this shouldn’t be one of them 🙁 ).

[briansd1]

[quote=4plexowner]I suspect that there are many people in San Diego who maintained their ‘rich and famous’ lifestyles by sucking the equity out of their real estate as the bubble grew
[/quote]

[quote=4plexowner]
they have resources to draw on – retirement savings, investments, family, credit, etc so they are able to hold on longer than others might
[/quote]

I agree with you. it’s very prevalent in my opinion.

Nothing can bail these guys out but a return to the peak plus even more appreciation.

A recovery from the bottom is of no consequence at all.

These people are still living in denial as they exhaust their resources.

[briansd1]

[quote=4plexowner]I suspect that there are many people in San Diego who maintained their ‘rich and famous’ lifestyles by sucking the equity out of their real estate as the bubble grew
[/quote]

[quote=4plexowner]
they have resources to draw on – retirement savings, investments, family, credit, etc so they are able to hold on longer than others might
[/quote]

I agree with you. it’s very prevalent in my opinion.

Nothing can bail these guys out but a return to the peak plus even more appreciation.

A recovery from the bottom is of no consequence at all.

These people are still living in denial as they exhaust their resources.

[briansd1]

[quote=4plexowner]I suspect that there are many people in San Diego who maintained their ‘rich and famous’ lifestyles by sucking the equity out of their real estate as the bubble grew
[/quote]

[quote=4plexowner]
they have resources to draw on – retirement savings, investments, family, credit, etc so they are able to hold on longer than others might
[/quote]

I agree with you. it’s very prevalent in my opinion.

Nothing can bail these guys out but a return to the peak plus even more appreciation.

A recovery from the bottom is of no consequence at all.

These people are still living in denial as they exhaust their resources.

[briansd1]

[quote=4plexowner]I suspect that there are many people in San Diego who maintained their ‘rich and famous’ lifestyles by sucking the equity out of their real estate as the bubble grew
[/quote]

[quote=4plexowner]
they have resources to draw on – retirement savings, investments, family, credit, etc so they are able to hold on longer than others might
[/quote]

I agree with you. it’s very prevalent in my opinion.

Nothing can bail these guys out but a return to the peak plus even more appreciation.

A recovery from the bottom is of no consequence at all.

These people are still living in denial as they exhaust their resources.

[Author]

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