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Well, I know that I'm extremely reluctant to consider the possibility of ever owning a home again. Yes, I've been through two foreclosures, and I don't want to do it ever again. The problem is, you still need a roof over your head. I hear you guys loud and clear when you talk about buying a house outright, but Jeez, all that time you'd have to spend to earn that money, while still paying for your living expenses (and getting nothing in return) seems like a waste of valuable time. I know it ticks me off that I pay more per month for my rent and utilities, without receiving any tax credit, than I would be if I were paying for a house (even with the taxes included).
The other part of the equation here that I haven't seen mentioned is that people still need a place to live. If you've lost income or a job, and you don't have enough money to continue to pay your mortgage, then you also don't have the money to pay for rent and utilities, especially now with rental rates going through the roof. What then? Go on public assistance? I've failed to see the economic benefit of evicting a family from their home, only to have them go on public assistance, instead of allowing them to remain in their home while a long-term solution is worked out. I'm sure that the majority would've preferred to not have to be in that situation. I'd rather live in a neighborhood of homes that are actually occupied rather than sitting empty and abandoned.
Homelessness 4 the middle class. We have come far.
If you live rent free for 10 years then you can save up enough to buy a modist house with cash.
Well,in some states like Nj for instance, a modest home in a safe neighborhood would cost at least 300,000. How do you save up for a house that costs that much?
It seems some posters are talking about how they paid cash for their homes. I wonder what year was that in? 1970? Its a different world now, and wages haven't kept up with inflation. AAlso,how would anyone know if the woman in the article didn't send her children to public schools because they were unsafe?
Now,I would agree there is a lot of pressure for me to buy a home. When I was looking for rentals everyone would look at my income and ask when I was going to buy a home. I guess I'm one of the few who don't mind renting. However there are a lot of slimy landlords out there. In some instances,paying rent does cost more than having a mortgage. The going rate in my area is for a 3 bedroom is 1800 a month,which to me sounds ridiculous but a mortgage will be 1400(fixed rate)
A lot of people believe they will get by. A relative who works for the federal govermant believes she wil never get laid off(her reason-its the goverment). Her mortage is at the top of her budget,or 50% of her total net income. She believes if she keeps doing overtime she'd somehow make it. But overtime is drying up.I don't know what she is going to do now.
Well,in some states like Nj for instance, a modest home in a safe neighborhood would cost at least 300,000. How do you save up for a house that costs that much?
It seems some posters are talking about how they paid cash for their homes. I wonder what year was that in? 1970? Its a different world now, and wages haven't kept up with inflation. Also,how would anyone know if the woman in the article didn't send her children to public schools because they were unsafe?
Now,I would agree there is a lot of pressure for me to buy a home. When I was looking for rentals everyone would look at my income and ask when I was going to buy a home. I guess I'm one of the few who don't mind renting. However there are a lot of slimy landlords out there. In some instances,paying rent does cost more than having a mortgage. The going rate in my area is for a 3 bedroom is 1800 a month,which to me sounds ridiculous but a mortgage will be 1400(fixed rate)
A lot of people believe they will get by. A relative who works for the federal govermant believes she wil never get laid off(her reason-its the goverment). Her mortage is at the top of her budget,or 50% of her total net income. She believes if she keeps doing overtime she'd somehow make it. But overtime is drying up.I don't know what she is going to do now.
What we need is asset deflation and wage price inflation. The houses have gotten more expensive and the wages have gone down. People aren’t making more money. And we have way too much debt as a nation. Good to see more people not adding to the total debt. But inflating wages is what we need.
A+B=C You can't eliminate A from the equation and say that B=C. They had too much debt, bought too much house, saved too little income....they were living on the edge already. The income loss was simply the last straw that broke the camel's back.....but the straw was already piled high!!
And are you sure they didn't participate in the bubble even though they bought their house earlier? The author mentions a re-fi and all the expensive home repairs, sounds like they participated by draining their house of equity that was created during the bubble. I know, I know...everyone was doing it.
Sure, it CAN happen to anyone (even lighting can strike the same place twice) but for the most part it's happening to financially irresponsible people as described in the story.
I'm still waiting for the link to the story about the family who bought below their budget with a 20% downpayment, doesn't have any car debt, home repair debt, CC debt, lives below their means, has a generous emergency fund, didn't suck the equity out of the house during the bubble but instead saved and invested knowing the good times have to come to an end and then still lost it all when the economy soured.
Find me THAT story and then I'll agree that it shows another side of the foreclosure crisis. What you have presented is very typical of what is happening...those living on the edge are more likely to fall off the cliff. Nothing new here.
Applause!!!!!!!!!!!!!!!!!!
Did you ever think that the failure to understand this story of blatantly obvious financial mismanagement and gluttony might explain why so many found themselves in such a situation? I cannot believe people are arguing with you about it.
yep my taxes are more than my priciple and interest
taxes here on long island average about 12k...that's 1000 a month, for a basic 1400sf house, on a tiny lot
.... mine are about 1200 a YEAR for that same sized house and a good sized lot......
Quote:
Originally Posted by YAZ
Rbohm is right.
Holy Cow!
6 year loan agreements for a new car now?
Many of those won't be on the road after 5 years.
Credit will get tighter.....and tighter.
20% down for a home and PROOF of income.
We're gonna see interest rates of 18% again. Just like my parents did in the 70's.
Say bye bye to "free" checking.
i am hearing SEVEN year car loans advertised on the radio these days.....
and those interest rates persisted WELL into the 80's .....
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