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You may want to read the article, the author is losing her house after a downturn in business. It's a first-person take on the foreclosure crisis.
Actually, it is not.
Rather its a typical story that went on before the crisis and will continue to go on. The women in question, by her own admission, was not fiscally prudent. Not such a big deal until her work income plunged. Then it all fell apart.
I hesitate to state the obvious, but had she refrained from piling up so much credit card debt, and perhaps had one less kid, she and her husband would probably have been in a position to weather the storm that was her income reduction.
In any case, this kind of thing happened long before the foreclosure crisis- forclosures are nothing new. While I feel a bit of sympathy, I do not see where she was conned or victimized. She did it to herself and dragged her husband and children down as well. Still, I would guess that they will regroup and do just fine living a more modest existence.
"Save two years mortgage payments"? Should they add living expenses as well? Even if they didn't have a 20% down payment of fork over just where are most people going to make enough money to effectively double their mortgage payments to save up for losing their job? That is impossible with interest rates below inflation. Please tell me what sector pays that well?
The debtor economy that started during the Raygun years is a result of policies that led to more and more people, and the government, borrowing money instead so saving. The financiers do not want to either pay taxes or interest. They want to keep taxes low and loan the government the difference. When republicans are in charge, including that RINO coward Clinton, the rich get a lot richer than when reasonable progressives make them pay their fair share of the taxes needed to keep the country operating in the black.
I'm not sure spending money on rural America property can be called an "investment" during these times when everyone seems to want a city condo. However, it was clear to me that the government was never going to stop printing dollars which made mine worth less and less. Also the fact that the government cannot print land, I have to assume will make mine worth more and more.
However, other than the solace of knowing that my child, or my grandchildren, can have a roof over their head that has no mortgage if they want it or need it, the property is not likely to ever "return" anything monetary in my lifetime.
I don't think in a limited fashion when it comes to the word "investment"
Rather its a typical story that went on before the crisis and will continue to go on. The women in question, by her own admission, was not fiscally prudent. Not such a big deal until her work income plunged. Then it all fell apart.
I hesitate to state the obvious, but had she refrained from piling up so much credit card debt, and perhaps had one less kid, she and her husband would probably have been in a position to weather the storm that was her income reduction.
In any case, this kind of thing happened long before the foreclosure crisis- forclosures are nothing new. While I feel a bit of sympathy, I do not see where she was conned or victimized. She did it to herself and dragged her husband and children down as well. Still, I would guess that they will regroup and do just fine living a more modest existence.
Rainy days always come. Prepare for them.
Having read the article I'd say that the downturn would have wiped her out regardless of how responcible she had been. Her income had dropped below brake even on the gas to get to work each day. The only way to have gotten around this one was for her to have bought the house with cash. (They do that in China)
Having read the article I'd say that the downturn would have wiped her out regardless of how responcible she had been. Her income had dropped below brake even on the gas to get to work each day. The only way to have gotten around this one was for her to have bought the house with cash. (They do that in China)
How do you know?
The writer freely admits that she had numerous collectors calling her. And that was before her work was reduced. Anyone who has collectors calling like that is already in over her head. Foreclosure was just the piece d'resistance.
Pay in cash for a house? Who does that?
The women should have:
1) Lived within her means;
2) Saved so that she would have had funds to continue paying the mortgage.
That is what people do. If not we would see this kind of things more than we already do.
The women spenT like a drunken sailor and payed a price for fiscal irresponsibility. Debt is not an entitlement. Why is that so hard for some to comprehend?
Know? I don't but gut fealing is that if she had lived a simpler life she still would have been wiped out.
Quote:
Originally Posted by Moth
The writer freely admits that she had numerous collectors calling her. And that was before her work was reduced. Anyone who has collectors calling like that is already in over her head. Foreclosure was just the piece d'resistance.
The way I read the article and you may hyave read it differently is the down turn in the economy came first the debt colectors came second.
Quote:
Originally Posted by Moth
Pay in cash for a house? Who does that?
In China it is not an uncomin practis but then again they save 40% of their income over there so living inside of your means has an entirely different conotation over there.
Quote:
Originally Posted by Moth
The women should have:
1) Lived within her means;
2) Saved so that she would have had funds to continue paying the mortgage.
Yes very true. In hind sight it is easy to say this and if she had been really responcible she would not have chosen a carear built on a debt bubble. But everyone in the US has a job built on a debt bubble so there.
Quote:
Originally Posted by Moth
That is what people do. If not we would see this kind of things more than we already do.
The women spend like a drunken sailor and payed a price for fiscal irresponsibility. Debt is not an entitlement. Why is that so hard for some to comprehend?
http://www.cleanmpg.com/photos/data/...entage-gdp.jpg This graph says it all. Everyone is way too far in debt collectively. Personal debt reached 100% of GDP in two years about 1933 and again in 2007. Everyone has way too much debt. everyone.
Again, these people bought the home in 1998, there was a serious downturn in her business income, they lost the house. It could happen to any of us.
You guys are completely missing the point of the thread. Sheesh.
Read this:
Quote:
But we had always beaten the dragon back into the cave wielding the arrows of occasional prosperity and the broadsword of refinancing.
I'd say losing the house had less to do with loss of income and more to do with using the house as their personal piggy bank.
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