[annerk]

Originally Posted by SuiteLiving

As I said, I chose to pay my mortgage off because I didn't want to be in debt. Good Night's Sleep 101. Debt almost destroyed my company which scared the hell out of my family. Could I have made more in the market, yes. But that would not have provided the security my family was looking for.

I've got enough in diverse but secure savings (not stock market investments) to live on for over five years, even if there is hyper-inflation. That's more than enough security for me. I'd rather be diverse in investments and build my wealth then live debt free but having nothing to actually show for it. Real estate won't put food on the table during tough economic times.

[SuiteLiving]

Originally Posted by Gatornation

Hijacking a thread for grammar is one thing. Petty insults like this are just classless.

So is being elitist in response to constructive criticism.

[Sunny-Days-in-Florida]

Originally Posted by JBMallory

Ok, add one more scenario, how about those who depleted more than 6 months worth of savings to try and stay in their home and still weren't able to?

Perhaps a second job?

I do not have the answer but surely you can find a way to pay the extra cost.

When you purchase the home YOU signed knowing that you could pay the payment and had enough backup money to cover it. The next step to me would be to find 2 jobs or something to make up the difference once savings is depleted.

Everyone's situation is different but I know many who have taken on second jobs because they felt a moral duty to follow through with their agreement.

If you look into the stats you will see that a large majority of people are walking away just to walk and do not have financial issues.

I do not have the answer because everyone's situation is so different but I can say for those who just want to up and walk away it is wrong.

For those who signed ARMS, then they agreed to pay the extra money when it came to that time and they need to work a second job to cover for it. They knew the ARM was going to change BEFORE they signed the contract.

This country is in a mess with this and it does not seem to be getting any better with the record foreclosures and bankruptcies this year.

Maybe we should blame those who are running the country and have not created any good paying jobs as promised. Jobs is what we need and something we are not getting even after a stimulus that was suppose to create jobs has failed.

[Sunny-Days-in-Florida]

Originally Posted by annerk

Maybe the banks should require a full year or more in savings before lending. Homeownership is NOT a right.

I agree, it is not a right but some will come on and say it is a right for them to own a home.

It is an earned privilege to own a home.

That right idea is what got us into this mess to begin with.

[mango23]

Originally Posted by Sunny-Days90

I agree, it is not a right but some will come on and say it is a right for them to own a home.

It is an earned privilege to own a home.

That right idea is what got us into this mess to begin with.

You are requiring a lot of people. From the time we are old enough to understand we are told the American dream is to ones own home. People would live with a family members would live together, people would work extra jobs, and save for years for this privilege. Years ago when someone paid off their mortgage friends would have a mortgage burning party, it was truly the American dream.

Now fast forward and people were lead to believe that they didn't have to wait anymore, they were convinced by lenders that unlike their parents they could have it all, now. It was not a hard thing to sell to the public, when you begin telling people what they want to hear they will follow. Politicians have been using this ploy forever. I can't completely fault the public, they made life changing mistakes and should have known better but in fact they were seeing others doing it and many even making money, they just didn't want to miss the train.

Standing back, everything that happened is easy to understand and probably predictable with the luxury hindsight. If one is not one of the ones who have now found themselves in this desperate position. It's easy to be aragant and say what fools, but more accurately would be, "There but for the grace of God go I".

[annerk]

Originally Posted by mango23

You are requiring a lot of people. From the time we are old enough to understand we are told the American dream is to ones own home. People would live with a family members would live together, people would work extra jobs, and save for years for this privilege. Years ago when someone paid off their mortgage friends would have a mortgage burning party, it was truly the American dream.

Now fast forward and people were lead to believe that they didn't have to wait anymore, they were convinced by lenders that unlike their parents they could have it all, now. It was not a hard thing to sell to the public, when you begin telling people what they want to hear they will follow. Politicians have been using this ploy forever. I can't completely fault the public, they made life changing mistakes and should have known better but in fact they were seeing others doing it and many even making money, they just didn't want to miss the train.

Standing back, everything that happened is easy to understand and probably predictable with the luxury hindsight. If one is not one of the ones who have now found themselves in this desperate position. It's easy to be aragant and say what fools, but more accurately would be, "There but for the grace of God go I".

The difference between years ago and now is that they lived frugally and saved the pennies for the 20% down. Thet bought small homes that they could afford on one salary. They didn't ahve so many "toys" in the single car garage that they couldn't park the two gas guzzling SUV's. They lived within their means, not on credit, which is something that many in this nation ahve forgotten how to do.

And by the way, a dream is not a right.

[Swimmom32]

this whole topic isnt so cut and dry...and I will leave it at that...when u walk a mile in people's shoes who DID the right thing, then one can pass judgement...a friend of ours is going thru it now..no credit card debt, no car loans..her husband lost his job relocated to another state otherwise they would be homeless, obviously cant live in 2 places and pay rent and a mortgage with a family....put down 20% lived on one income and in their means and guess what? because he took the job elsewhere and they couldnt afford the mortgage they wound up short selling it..HOwever they were prepared to have it foreclosed...Bad People No they arent....Crap happens in life and this is an economy that no one had seen coming and sometimes in life people have to do what they need to survive second jobs cant always be done, basically my point is those who had NO down payment, and those that bought too much well they had it coming...However those good people who crap happened too sometimes it cant be avoided...

[annerk]

Originally Posted by Swimmom32

this whole topic isnt so cut and dry...and I will leave it at that...when u walk a mile in people's shoes who DID the right thing, then one can pass judgement...a friend of ours is going thru it now..no credit card debt, no car loans..her husband lost his job relocated to another state otherwise they would be homeless, obviously cant live in 2 places and pay rent and a mortgage with a family....put down 20% lived on one income and in their means and guess what? because he took the job elsewhere and they couldnt afford the mortgage they wound up short selling it..HOwever they were prepared to have it foreclosed...Bad People No they arent....Crap happens in life and this is an economy that no one had seen coming and sometimes in life people have to do what they need to survive second jobs cant always be done, basically my point is those who had NO down payment, and those that bought too much well they had it coming...However those good people who crap happened too sometimes it cant be avoided...

Or they could have done what my husband and I do. I live in the house with our son, he works 1100 miles away in another state and rents a room. Does it suck? Sometimes very much so. But it's what we need to do, so we're doing it. Based on that, yes I CAN AND WILL PASS JUDGEMENT because I've walked the mile.

[mango23]

Originally Posted by annerk

Or they could have done what my husband and I do. I live in the house with our son, he works 1100 miles away in another state and rents a room. Does it suck? Sometimes very much so. But it's what we need to do, so we're doing it. Based on that, yes I CAN AND WILL PASS JUDGEMENT because I've walked the mile.

My whole idea of life is you can live it as you please as long as it is not at someone eases expense. I live a very conservative lifestyle and I don't really have to. We have no children and have always done well for ourselves. I would not so much say it is due to being so smart and responsible but probably more out of fear from what I have seen others do. I know how fast your life can fall apart and not always through any doing of your own. I also don't fault or cast stones at those who chose to live a life with a bit more risk.

Risk by the way also leads the way to reward. A lot of people made a lot of money during the boom of a few years ago. If you are so smart how come you weren't one of them? You seem to know the future, it was easy money for a while. I didn't buy anything myself but I did dump property for many times what I had paid for it some years earlier. What I did right was not plunge my profits into new investments that could have sunk me like many did. My own sister made $800,000. on a piece of property only to reinvest it in what now is worth maybe 40% what she paid. I was more happy to take my money and run.

[annerk]

Originally Posted by mango23

My whole idea of life is you can live it as you please as long as it is not at someone eases expense. I live a very conservative lifestyle and I don't really have to. We have no children and have always done well for ourselves. I would not so much say it is due to being so smart and responsible but probably more out of fear from what I have seen others do. I know how fast your life can fall apart and not always through any doing of your own. I also don't fault or cast stones at those who chose to live a life with a bit more risk.

Risk by the way also leads the way to reward. A lot of people made a lot of money during the boom of a few years ago. If you are so smart how come you weren't one of them? You seem to know the future, it was easy money for a while. I didn't buy anything myself but I did dump property for many times what I had paid for it some years earlier. What I did right was not plunge my profits into new investments that could have sunk me like many did. My own sister made $800,000. on a piece of property only to reinvest it in what now is worth maybe 40% what she paid. I was more happy to take my money and run.

We did make money in our investments in the boom years. We are conservative with our money and put most of it into retirement accounts--we took the money and ran just like you did. (I cashed out 80% of our investment accounts at the very top of the market.) We could afford a small condo or rent on an apartment for my husband, but why stretch our budget to the limits to do so? That's a risk I'm not willing to take.