[EconProf]

Another factor about the “good old days” when people had to have 20% down:
Accumulating that 20% meant a few years of saving–an alien concept for today’s consumers. Saving meant budgeting, watching your expenditures, having the satisfaction of seeing that nest egg grow, and forming habits over several years time that did not go away once one bought the house. That self-discipline and the ability to defer gratification is missing today and will have to be relearned.
In fact, perhaps a few years of truly gut-wrenching austerity imposed upon Americans by a deep, deep recession will have its beneficial effects.
As George Carlin liked to say “It’s just stuff”.

[EconProf]

Another factor about the “good old days” when people had to have 20% down:
Accumulating that 20% meant a few years of saving–an alien concept for today’s consumers. Saving meant budgeting, watching your expenditures, having the satisfaction of seeing that nest egg grow, and forming habits over several years time that did not go away once one bought the house. That self-discipline and the ability to defer gratification is missing today and will have to be relearned.
In fact, perhaps a few years of truly gut-wrenching austerity imposed upon Americans by a deep, deep recession will have its beneficial effects.
As George Carlin liked to say “It’s just stuff”.

[EconProf]

Another factor about the “good old days” when people had to have 20% down:
Accumulating that 20% meant a few years of saving–an alien concept for today’s consumers. Saving meant budgeting, watching your expenditures, having the satisfaction of seeing that nest egg grow, and forming habits over several years time that did not go away once one bought the house. That self-discipline and the ability to defer gratification is missing today and will have to be relearned.
In fact, perhaps a few years of truly gut-wrenching austerity imposed upon Americans by a deep, deep recession will have its beneficial effects.
As George Carlin liked to say “It’s just stuff”.

[EconProf]

Another factor about the “good old days” when people had to have 20% down:
Accumulating that 20% meant a few years of saving–an alien concept for today’s consumers. Saving meant budgeting, watching your expenditures, having the satisfaction of seeing that nest egg grow, and forming habits over several years time that did not go away once one bought the house. That self-discipline and the ability to defer gratification is missing today and will have to be relearned.
In fact, perhaps a few years of truly gut-wrenching austerity imposed upon Americans by a deep, deep recession will have its beneficial effects.
As George Carlin liked to say “It’s just stuff”.

[EconProf]

Above all, have her immediately go to the police and file a report. DO NOT let her sister talk her out of that action. It is the necessary first step on the paper trail that she will have to initiate to clear herself. She can tell her sister that she simply has not choice in the matter–it is now an issue of self-preservation.

[EconProf]

Above all, have her immediately go to the police and file a report. DO NOT let her sister talk her out of that action. It is the necessary first step on the paper trail that she will have to initiate to clear herself. She can tell her sister that she simply has not choice in the matter–it is now an issue of self-preservation.

[EconProf]

Above all, have her immediately go to the police and file a report. DO NOT let her sister talk her out of that action. It is the necessary first step on the paper trail that she will have to initiate to clear herself. She can tell her sister that she simply has not choice in the matter–it is now an issue of self-preservation.

[EconProf]

Above all, have her immediately go to the police and file a report. DO NOT let her sister talk her out of that action. It is the necessary first step on the paper trail that she will have to initiate to clear herself. She can tell her sister that she simply has not choice in the matter–it is now an issue of self-preservation.

[EconProf]

Above all, have her immediately go to the police and file a report. DO NOT let her sister talk her out of that action. It is the necessary first step on the paper trail that she will have to initiate to clear herself. She can tell her sister that she simply has not choice in the matter–it is now an issue of self-preservation.

[EconProf]

1. Acknowledge that they have already lost X amount on the property. That is a sunk cost…done & gone.
2. Acknowledge that amount X is undoubtedly much greater, due to ongoing decline of 1 – 2% per month until sold, which may be many months.
3. Possibly prepare to walk, absorb the hit to credit, but begin getting liquid & prepared to do without credit cards, spend on a cash basis for many years, etc.
4. In light of finances, reconsider: Can this marriage be saved?

[EconProf]

1. Acknowledge that they have already lost X amount on the property. That is a sunk cost…done & gone.
2. Acknowledge that amount X is undoubtedly much greater, due to ongoing decline of 1 – 2% per month until sold, which may be many months.
3. Possibly prepare to walk, absorb the hit to credit, but begin getting liquid & prepared to do without credit cards, spend on a cash basis for many years, etc.
4. In light of finances, reconsider: Can this marriage be saved?

[EconProf]

1. Acknowledge that they have already lost X amount on the property. That is a sunk cost…done & gone.
2. Acknowledge that amount X is undoubtedly much greater, due to ongoing decline of 1 – 2% per month until sold, which may be many months.
3. Possibly prepare to walk, absorb the hit to credit, but begin getting liquid & prepared to do without credit cards, spend on a cash basis for many years, etc.
4. In light of finances, reconsider: Can this marriage be saved?

[EconProf]

1. Acknowledge that they have already lost X amount on the property. That is a sunk cost…done & gone.
2. Acknowledge that amount X is undoubtedly much greater, due to ongoing decline of 1 – 2% per month until sold, which may be many months.
3. Possibly prepare to walk, absorb the hit to credit, but begin getting liquid & prepared to do without credit cards, spend on a cash basis for many years, etc.
4. In light of finances, reconsider: Can this marriage be saved?

[EconProf]

1. Acknowledge that they have already lost X amount on the property. That is a sunk cost…done & gone.
2. Acknowledge that amount X is undoubtedly much greater, due to ongoing decline of 1 – 2% per month until sold, which may be many months.
3. Possibly prepare to walk, absorb the hit to credit, but begin getting liquid & prepared to do without credit cards, spend on a cash basis for many years, etc.
4. In light of finances, reconsider: Can this marriage be saved?

[EconProf]

When the government interferes with the sanctity of contracts, it scares future lenders and causes them to raise all interest rates, even to good borrowers. The responsible borrowers–those who have saved up before buying, will be penalized.
Cramdowns, bankruptcy judges forcing lower mortgage balances or interest rates, foreclosure holidays or delays, refusal by local authorities to enforce foreclosures–all these and other feel-good government actions are the mark of a banana republic that does not respect the rule of law.
For decades the US has had the world’s best and most efficient and respected mortgage market, attracting the world’s money. Now it is endangered by populist measures that will haunt us far into the future. Investors, foreign and domestic, will flee our shores, or stay and charge the appropriate risk premium.
Beware of the results when you move from the rule of law to the rule of men in this way.

[Author]

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