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Million-dollar foreclosures rise as rich walk away
NEW YORK (CNNMoney) - Five years after the housing bubble burst, America's wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country -- and many of them are doing so voluntarily...
Even for the more wealthier "Jones" that the mundane people aspire to be will have a hard time if their hard earned cash is taxed by the big brother to the point of not being able to balance food & a better shelter.
(Like the height of the housing peak before the $hit rolls down the hill... who would have foreseen such "hike" in property taxes, gas, food, healthcare & other stuffs at 20% plus or more????... and when anyone gets caught by surprise of getting squeezed via government {who else have that power?}, $hit6 happens!!!).
Domino effect... if one thinks thy neighbour's problems won't affect you, the self... Do think again.
B/c reality is, it does.
"A human being is part of the whole called by us universe , a part limited in time and space. We experience ourselves, our thoughts and feelings as something separate from the rest. A kind of optical delusion of consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest to us. Our task must be to free ourselves from the prison by widening our circle of compassion to embrace all living creatures and the whole of nature in its beauty...We shall require a substantially new manner of thinking if mankind is to survive." - Albert Einstein
... like in relativity... a true domino effect; even if the card toppled may be miles from you, BUT eventually the "effect" will reach us all.
It is NOT the question of rich vs the poor...
NOT the question of you vs me, question of white nor black...
If all relates when you & I (plus any/everyone else) who lives within "that universe" (OK, the smaller housing bubble & that bad economy etc.)... that dying star may now seems *far* BUT the black hole it creates will NEVER discriminate to spare NO ONE.
Why let oneself be blinded by a skewed view controlled via media that the prime & sole purpose is to divide (via race / wealth / class etc.?? )??? When to do so is just enhancing division & more discrimination to the point of internal warfare so we loses focused on the "actual problems"??? Why let class warfare weaken the people as a whole???
When it should speak loud and clear...
When even the so-called wealthy & mighty have a problem in "debt", "foreclosure"... not doing well etc.. "WE" the home economy have a bigger problems than we realize!!!
Why???
Small expense (like a broken down car etc.), one may be able to cover from that unforeseen emergency... BUT HUGE BIG unforeseeable expense (like a bad health that affects the income generating lifestyle / a loss of job / a huge loss in the house etc. kind of a demise), it takes a toll not only on the affected (SS, REO or foreclosed owners, owners of major debt of anysort etc.)... it takes effect on all the taxes *you* & *I* have to pay, what our children & children's childrens have to pay... someone *else* (that *YOU* and *ME*) have to foot that bill sooner or later.
And who do you think will be exempted to the very last till the very doom have gone & past (if it will)??? But the ones in "control" of the power they forced everyone else to give up.... the ones even if you are rich or poor still have to pay tributes to... for Uncle Sam (Uncle Sam owes the tax payers, the other countries & themselves even).
When Uncle Sam finally falls... there goes the country (country leveraged & sold to another... what more asset, you & I are left with?)!!!
What is left of the "American Dream"???
What else is worth anymore if one's own homes has no more value???
Most of the "rich" who walk away from million dollar homes are not "rich".
Rather many are what CNN refers to as "Henrys". High earners not rich yet
Many earn between $200-500k. While that's a lot of money. In the context of high cost areas such as SF LA Wash DC etc. We must need to remember a million dollar home is not a mansion in many parts of the county. It's more likely to buy you not even an acre lot. Maybe half an acre in McLean Virginia or Bethesda Maryland.
Factor in AMT alt min taxes. Everyday expenses like child care from duo income family.
That's the type of "rich" people who walk away. And it's usually in non records states like California.
If people had assets or were in recourse states they think twice before walking away.
Most of the "rich" who walk away from million dollar homes are not "rich".
Rather many are what CNN refers to as "Henrys". High earners not rich yet
Many earn between $200-500k. While that's a lot of money. In the context of high cost areas such as SF LA Wash DC etc. We must need to remember a million dollar home is not a mansion in many parts of the county. It's more likely to buy you not even an acre lot. Maybe half an acre in McLean Virginia or Bethesda Maryland.
Factor in AMT alt min taxes. Everyday expenses like child care from duo income family.
That's the type of "rich" people who walk away. And it's usually in non records states like California.
If people had assets or were in recourse states they think twice before walking away.
Quit defending the rich deadbeats. Those with incomes above $250k compromise a whopping 1.5% of the US population. If you're better off than 98.5% of your fellow americans, you're RICH - whining about it just makes you look petty. Enjoy your wealth, and PAY YOUR BILLS!
Most of the "rich" who walk away from million dollar homes are not "rich".
Rather many are what CNN refers to as "Henrys". High earners not rich yet
Many earn between $200-500k. While that's a lot of money. In the context of high cost areas such as SF LA Wash DC etc. We must need to remember a million dollar home is not a mansion in many parts of the county. It's more likely to buy you not even an acre lot. Maybe half an acre in McLean Virginia or Bethesda Maryland.
Factor in AMT alt min taxes. Everyday expenses like child care from duo income family.
That's the type of "rich" people who walk away. And it's usually in non records states like California.
If people had assets or were in recourse states they think twice before walking away.
We have friends who bought a place for $850k in Chicago. The place was in the rapidly gentrifying south side. Houseing prices went up as Chicago felt it was going to get the 2016 Olympics and the area had promises of a multitude of amenities and access to the 'Olympic Village' once the Olympics were over. Parks, gymnasiums, public pools and arenas..etc.
Olympics fell through and so did the housing boom.
The places are selling in the $400K's.
These are doctor friends and yes they make $250K.
Of which 60% goes to taxes. Then the mortgage is $50,000 a year. And student loans are $26,000 year.
That leaves them about $40,000 a year. Not a pitance, certainly.
But hardly people that deserve comments like the ones from the poster above (I didnt quote the troll).
They can't leave because they can't afford to sell their house.
I can see how the "rich" are being forced to be foreclosed on.
But being considered "rich" does not make them any less of a person.
We have friends who bought a place for $850k in Chicago. The place was in the rapidly gentrifying south side. Houseing prices went up as Chicago felt it was going to get the 2016 Olympics and the area had promises of a multitude of amenities and access to the 'Olympic Village' once the Olympics were over. Parks, gymnasiums, public pools and arenas..etc.
Olympics fell through and so did the housing boom.
The places are selling in the $400K's.
These are doctor friends and yes they make $250K.
Of which 60% goes to taxes. Then the mortgage is $50,000 a year. And student loans are $26,000 year.
That leaves them about $40,000 a year. Not a pitance, certainly.
But hardly people that deserve comments like the ones from the poster above (I didnt quote the troll).
They can't leave because they can't afford to sell their house.
I can see how the "rich" are being forced to be foreclosed on.
But being considered "rich" does not make them any less of a person.
Tenzo, seriously - are we supposed to believe your math?
60% to taxes?
Horse pucky.
Not even close.
The richest 1% of Americans pay an average effective tax rate of 33.7%. Someone with an $800k mortgage gets a deduction for that interest at a minimum. The only way your hypothetical couple has $50k in annual mortgage payments is if they put zero down on that $850k home. I'd call that irresponsible, for the lender and the borrower.
And student loans over $60k can be amortized over 20-30 years. If they're paying $26k per year to student loans, they overpaid for their education, or they're paying them off early.
Neither situation is a cause for sympathy. For every doctor with student loans, there's a nurse or a teacher with loans, and they pay them off with a significantly lower salary.
Tenzo, seriously - are we supposed to believe your math?
60% to taxes?
Horse pucky.
Not even close.
The richest 1% of Americans pay an average effective tax rate of 33.7%. Someone with an $800k mortgage gets a deduction for that interest at a minimum. The only way your hypothetical couple has $50k in annual mortgage payments is if they put zero down on that $850k home. I'd call that irresponsible, for the lender and the borrower.
And student loans over $60k can be amortized over 20-30 years. If they're paying $26k per year to student loans, they overpaid for their education, or they're paying them off early.
Neither situation is a cause for sympathy. For every doctor with student loans, there's a nurse or a teacher with loans, and they pay them off with a significantly lower salary.
More "Joe the Plumber" math...
1a) Mortgage lenders have a doctor special. ALL the doctors I knew made a government mandated $42,000 and worked 100 hours a week. Banks issue mortgages to doctors based on future earning because they have not worked a job that pays a decent salary (plus see below).
1b) Mortgage rates go up when a house is underwater, as this one is.
2) When borrowing money for their education (think 4 years med school and 3-7 years residency. So we are talking 7-11 years of school), the money was loaned at 4.2% interest. Just recently the government took control of student loans to "make education more affordable".
the first thing they did was change the interest rate from 4.2% to 6.5%. Now the bank could not do this, but the government can. THEN, the government eliminated 'financial hardship' as an excuse not to pay. The end result being that medical residents made below the poverty level for 3 - 7 years.
So if they borrow money for undergraduate. Then $50,000 a year for 4 years of medical school. Plus living expenses for 7 years of school plus residency. Plus interest accruing at 6.5%
You do the math. And if you come up with a number, amortized over 30 years that is less than $26,000, let me know.
Do you really expect someone making $42,000 a year and paying $26,000 in student loans to save money?
I've seen the brightest people I have ever met been reduced to living below the poverty line and being told they make too much
But that wasn't really my point.
My point is that no matter who it is, if they are hurting they all deserve compassion. That you can single out a small minority of people and say they don't deserve compassion is disturbing.
But that wasn't really my point.
My point is that no matter who it is, if they are hurting they all deserve compassion. That you can single out a small minority of people and say they don't deserve compassion is disturbing.
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