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Uh, that's her mistake right there -- even before she got laid off, she was paying nearly half of her income into an INTEREST-ONLY loan. Bad choices, now coming home to roost. Not only that...she's a former loan processor! There's no way she can claim ignorance of just what kind of loan she took out.
"...In the last 12 to 18 months, Brock said, the agencies he supplies have begun seeing more middle-class families coming to their doors.
..."They seemed to be better dressed. They seemed to have better cars and yet they seemed to be in crisis mode."...
Quote:
Originally Posted by bentlebee
This a family like many others who can't help it and are not to blame if they are going into foreclosure IMO. This is sad.
What a load of crap! These people don't belong at the food bank! Those are for the TRULY needy! Not someone who's abusing the system because they don't want to lose their Lexus and 2500sqft McMansion!
She IS to blame for going into forclosure! She has a $2500/month INTEREST ONLY loan!! Even at 0 down and 7% interest, that's practically a half-million dollar house!! What led her to believe she could afford a 500K house on a 70K income!!? The MAXIMUM range she should've been buying was 300K.
She could move out of her home, rent a decent 2-bedroom apartment for 1/2 of her current interest payments.
But no, instead, she's taking food out of the mouths of the truly needy while she tries to hold on to her half-million dollar house.
I might have been on a TIGHT budget at times, but I never went and took handouts from charity organizations. I might as well steal some poor homeless guy's coin cup! I'm sorry, but while I'm driving my crappy little car to work, and living in my cramped little apartment, you're not going to get any sympathy from me for the "poor" people "struggling" to get by without losing their precious Cadillacs and mansions!
I'm going to have to pile on with a limitation on sympathy.
There are people who lose extremely modest homes of 20/30 years due to long term illnesses such as cancer, or the early death of a spouse.
She could downsize, she could take on a couple of lesser paying jobs. And she could have lived within her means in the first place. Her income would indicate a home purchase of no more than $200k. And she could have done what many more prudent people did and rented.
Well, she actually does get at least some sympathy from me. Yes, she made a very foolish decision to buy her house on an interest-only loan. Yes, as a loan processor she certainly should have known better.
Here's where she has my sympathy, though. She'd probably LOVE to sell her home and rent something less expensive. In the California market, though, that house (which I'm sure was 100% financed when she purchased it) is probably worth about a 1/3 less than what she paid for it. Also, what might seem like a very pricey home to most of us, in Cali two years ago a $500k-$700k home was probably the price for a very modest home. But now, how's she going to sell it? IF she can find a buyer for it, will the bank accept the short sale? I give her credit for trying to keep up the payments on it instead of just walking away and letting the bank have it (which means all the rest of us eventually pay the price for that).
Also, a single mom with 2 kids who's lost her job has got to be a tough situation. Sounds like she really wants to work. The kind of jobs she'd probably be qualified for (banking, bookkeeping, etc) usually have 100's of applications for each opening.
I don't know, but I don't think I'll hold her stupidity against her. We all make mistakes - hopefully not such costly ones.
Well, she actually does get at least some sympathy from me. Yes, she made a very foolish decision to buy her house on an interest-only loan. Yes, as a loan processor she certainly should have known better.
Here's where she has my sympathy, though. She'd probably LOVE to sell her home and rent something less expensive. In the California market, though, that house (which I'm sure was 100% financed when she purchased it) is probably worth about a 1/3 less than what she paid for it. Also, what might seem like a very pricey home to most of us, in Cali two years ago a $500k-$700k home was probably the price for a very modest home. But now, how's she going to sell it? IF she can find a buyer for it, will the bank accept the short sale? I give her credit for trying to keep up the payments on it instead of just walking away and letting the bank have it (which means all the rest of us eventually pay the price for that).
Also, a single mom with 2 kids who's lost her job has got to be a tough situation. Sounds like she really wants to work. The kind of jobs she'd probably be qualified for (banking, bookkeeping, etc) usually have 100's of applications for each opening.
I don't know, but I don't think I'll hold her stupidity against her. We all make mistakes - hopefully not such costly ones.
IMO you are partly right. If you have this kind of a job you should know better. With this high mortgage payment she had to work so much to keep up and who is taken care of the kids? Maybe the grandmother or a paid person. When she had her divorce they should have sold their home and moved out to a smaller and more affordable home. All not very nice things, but since she was working in the field and probable swept away by having innocent people sign mortgages they didn't understand, that weighs more heavy to me than this lady with her job knowledge. I feel sad for the kids.
So, the message is the people who made wise financial decisions at the time should bailout people because of their financial stupidity?
Gotta love the system....
And it is financial stupidity. Who has a $250K interest only loan? making 70K?
Oh, that's right, the biggest purchase of their life and they claim ignorance.....
Just like everything else in today's society, its always someone elses' fault....
You are right. I felt sympaty first reading it but when I read it again and read this forum I agree this women is to blame herself. I wrote it a little earlier this morning as well.
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