Posted on 08/10/2006 5:31:16 AM PDT by Hydroshock
Nasrallah sends a text message out to activate 600 cellphones. Result: A small Hezbollah cell busted in Dearborn, Mich. But nobody is considering all those other Hezbo terror cells that are still active. Watch gold tomorrow. It may start edging upwards. All that money has to move somewhere.
Oh I thought from the title they were referring to the House of Representatives.
I did and it was a good post .. but letting Greed outwiegh your intellect for numerical analysis and trending is Stupid.
It doesn't take rocket or jet science to plot broad trend lines across the economy. Interest rates at a 40 year low ? They are PROBABLY going to go up.
The problem here isn't the no deposit, two mortgage plan, the problem is that he bought too expensive of a house and got an ARM, even though he knew he was gonna live there a while and it was clear interest rates would go up. If this couple had gotten a house in their price range or a fixed rate, they'd still have a home.
... If this couple had gotten a house in their price range or a fixed rate, they'd still have a home.
If I had to guess it would be very difficult to get the second mortgage as a fixed rate loan, or if they did, the fixed rate would be quite high. The "no money down" part is extremely important in this case. Their problem is that the value of the house may now be slightly less than they currently owe. If they couldn't come up with some cash for a down payment, I would suspect that if they had to sell their house they would not have enough cash to pay off their mortgages. If they can't make their payments and they can't afford to sell: foreclosure.
You're on the right track, Young Scholar! Glad to hear it. :)
Agreed, but they'd still be making payments if they had gotten a fixed rate on both mortgages (at an amount they could afford) and/or a less expensive house. In that case, they wouldn't need to worry about the value being lower right now because they wouldn't want to sell.
He lost by buying with no money down, two ARM's he couldn't afford if (when!) they went up. He should have bought a lower priced house at a fixed rate for the same amount. He should have sold before he got this deep.
I have been there, no one to blame but myself. My beef is with journalists and "people" who blame others for their own mistakes. Nobody is guaranteed prosperity, or a house.
If he owes more than the $24,000 he would have spent renting, he bought in the wrong area or did not maintain his home.
I've tried to stay off these agenda posts of doom, the woe-is-us we bought a house we couldn't afford and it's not our fault stories. People lose jobs, sell houses and stock at a loss, get divorced, that's life. I am sorry that people get conned into an ARM without realizing rates "sometimes" go up. But I hope they enjoyed living in their house while they could. Now go rent. And vote for Democrats who will take care of the little people and protect them from problems.
>>Dude? You couldn't afford that house in the FIRST place<<
...yet somehow they got a loan. ;)
"...yet somehow they got a loan. ;)"
Actually they signed up for TWO mortgages, no money down and a boatload of trouble, IMHO.
With my credit rating I could buy a McMansion tomorrow if I wanted to. Doesn't mean I want to work that hard to support one though, LOL!
I find it easier to sleep at night without those kinds of money nightmares haunting me. Just because someone else says you can afford something doesn't mean you really can.
And that goes for the 'Bill for Social Services' Mother Government says you and I can "afford" to pay for, too! :)
Very few people have been able to increase their earnings enough to keep ahead of the rapidly rising cost of making ends meet.
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What? Haven't you heard that inflation is almost non-existant? Haven't you heard that real wages are higher than ever before? I certainly believe it, just like I believe the IRS wants to make my life easier.
I agree; it's hard to teach good decision-making skills in school. The only thing that could have saved him was the old-fashioned attitude that one should wait until one can afford something before buying it (seemingly a very unpopular idea in America today).
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It is a very unpopular idea in America today and amazingly, at least it is amazing to me, some people don't even believe in getting their money's worth when they do buy. I hear people all the time say,"well, you get what you pay for". My response is to say, "not necessarily, you can very easily get a lot less than you paid for".
Trade skills have never been a part of a high school curriculum,
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Actually, in South Carolina there is a career center program in which the High Schools offer training in Graphic Arts, Small Engine Repair, Auto Mechanics, and other trades.
I guess that's true, but I meant that traditionally, high school has focused on the academic side of an education, while trade schools and apprenticeships have focused on practical skills.
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