lets hope they view this as a learning experience... oh, yeah... 1)dump the life insurance and 2)swapping the Vette for a Burban in NO cutback.
Posted on 03/31/2008 7:33:59 PM PDT by Notary Sojac
Kent and Mysti Cope met and fell in love working for one of the nation's top subprime lenders. Now, their life has been turned upside down after the sudden implosion of the subprime mortgage industry.
Mysti was one of the last people out the door at New Century Financial
Kent worked for several of the firms that helped give birth to the industry, which specializes in making loans to people with less-than-perfect credit
Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month.
Only $1,800 to cover $10,000 in bills
Their home equity line, mortgage, health and life insurance premiums alone cost about $10,000 a month. Still, they are trying to hang onto what they call their dream home with a view of the Pacific Ocean where they live with Mysti's 11-year old son.
"We've used up most of our reserves, cashed in her 401K,"
And they've made cutbacks: trading in Kent's Corvette for a Suburban and getting rid of the gardener, for example.
(Excerpt) Read more at money.cnn.com ...
This mental giant is trying to maintain his lifestyle by - getting a real estate license! In 2008! In California!
Made a ton of money fast, spent it faster, never spent a nanosecond planning for the future, and now they want my sympathy. Bite me, losers.
subprime couple fall into abyss of debtors can you spare a dime?
And let the gardener go
Dare they show their faces?
Well, the real estate license thing might sound silly, but it’s about the only way to make big money that someone with his experience has a shot at doing. Market issues aside, of course.
As far as the other stuff, well I’d have suggested planning better! That’s about all that can be said.
Just noticed your tagline - Fitzcarraldo is one of my favorite films of all time.....
I’ll let you in on a secret.
A lot of people that lost their jobs didn’t make sub-prime loans. In fact many of them didn’t make mortgage loans at all, and aren’t even in the residential lending industry.
>> And they’ve made cutbacks: trading in Kent’s Corvette for a Suburban and getting rid of the gardener, for example.
The horror! I feel so BAD for them. No one should have to suffer such indignity.
When I have lunch with W tomorrow I’m going to suggest that he give them my “consumer tax rebate”, in addition to their own.
Oh wait... I’m not getting a rebate. I paid too much tax!
Nevermind.
I’m willing to bet they CAN’T sell their house.
But their names are Kent and Mysti. I can't help them.
“Mysti” is not a total hag and with a name like that she could have a shot at pole dancing. A damn sight more productive career than working at New Century.
lets hope they view this as a learning experience... oh, yeah... 1)dump the life insurance and 2)swapping the Vette for a Burban in NO cutback.
Our business is doing fine and we've keep a steady flow of transactions. It's not whether or not to get a license. It's who will train and support you and what you do with it.
I am so going to cry myself to sleep tonight.
but=buy
Quote:
“Their home equity line, mortgage, health and life insurance premiums alone cost about $10,000 a month.”
And they got rid of a Corvette and a gardner?
Sorry, but these people were already living way beyond their means.
They have the same mentality as El Napo, esteemed governor of Arizona. When the money was rolling in, she insisted on spending what was coming in and more, and now we have a 1.2 billion deficit, and Butch insists on keeping these liberal programs going.
This may be the most nitwit story I’ve read in a month. It’s certainly worthy of CNN.
Now where’s that little tiny violin I keep to play sad songs for idiots? Maybe I left it under a book, maybe that mouse took it and is playing it in its hole.
I'd sure like to see them a year from now, out in the street (or in rental housing) and having to give up the Suburban. They should have piled away some money while they were fleecing the sheep, but like all con artists, they figured the scam would go on forever.
I'd really be overjoyed at a picture of them standing in line for government cheese (do they still give that crap out?)
And living in a house by the ocean. Yeah, they're really roughing it.
Maybe I have the advantage of age, but anybody working in the sub prime industry, in Ca, must have foreseen that this could not go on. We bailed out of investment properties in CA over two years ago figuring the market had peaked and was in trouble. Rents were so far behind prices, that any investor would sell. If they worked in the industry they were even closer to the numbers.
Sorry..but sell you Suburban and get a used Saturn..head for Tennessee if you can make any money from the house..and never look back.
Note they traded in the vette for a Suburban. With gas pushing 4 bucks a gallon why get such a gas guzzler when money is tight.
Umm, seems like a cutback would be trading the 'Vette for a Honda Civic.
Dear Kent and Mystie, you should have kept the vette cause that Suburban you have is going to cost you a fortune in gas. Kent, can the studying for a real estate license and get a job that you actually work. Mystie, go back to court and ask for more money from your child’s father.If you don’t succeed get a job that you actually work at and then you and Kent both should get a second job and perhaps another job. Work like crazy and you both may have enough to pay for the home.
Love Mojo
I'm confused how anybody ever thought this could go on forever.
Kent's employers run a business making loans to people who by definition were unlikely to be able to pay the loan back.
Then they turnedaround and sold these loans to someone else as a supposed "security."
This is a great deal for Kent and his bosses, or was while it lasted. They got to pocket the fees and commissions and dumped the exposure for their bad loans off onto someone else.
What I don't get is why "someone else" went for the deal. I suspect it's based on the theory that a whole bunch of bad loans become good loans if they're bundled together. Which is roughly the same idea as losing money on each unit but making it back on volume.
LOL
She met a 50 year old ‘rich guy’ when she was 30 and had a 4 year old kid. She looks significantly younger and though I don’t oppose significant age differentials in marriage partners on principle, I don’t need to be a psychologist or a sociologist or psychic to tell what motivated her to ‘fall in love’ with Kent.
Now, they’re on hard times and it’s something of a karmic retribution for the act of marrying for materialism’s sake.
We have a young couple in our church that have fallen into bad times.
He was a mortgage broker who personally believed everything he was preaching, so he and his wife bought a $750K home with zero down.
Well, he stopped getting business and stopped making money, and they had to sell their home.
They lived with his parents for awhile, and he kept on trying to make money.
Just recently, they moved to a mobile home park and the wife is working as a manager. I think they may get free rent. He’s finally gotten a job as a security guard.
They are a nice couple but naive.
I think he was looking for an easy way to make money, but what he doesn’t understand that most of us that are doing well did it with hard work and frugality.
Please, this is thread where you’re supposed to declare to the world how little you care about someone else’s misfortune.
No gardener? Well, that's it; I really don't know how they can live like that. Anyone know their address? I'd like to send them some money.
What makes you think he didn't work hard?
Interest rates were held artificially low for a long time, severely depressing returns and causing investors to take on a great deal of risk to try to get something for their money.
What makes you think this particular couple were con artists?
Actually, kind of heart warming to see they got themselves into the same stink they were pedaling.
>> What I don’t get is why “someone else” went for the deal. I suspect it’s based on the theory that a whole bunch of bad loans become good loans if they’re bundled together. Which is roughly the same idea as losing money on each unit but making it back on volume.
Anyone who doesn’t understand the subprime “crisis” would benefit from this informative slideshow, posted earlier right here on FR (by Notary Sajac, maybe?)
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true
WARNING: colorful (!) language.
To be fair, a couple that’s used to making $250,000 a year apiece is going to be hard pressed to find anything CLOSE to that outside the real estate or financial services industry.
While one might say anything now is better than nothing, if you change to another industry, instead of thinking “well right now I am not doing well but the potential is there” they take some salaried job for 60 grand a year and they’re saying “well, I have steady income and STILL can’t pay the bills, and there’s no opportunity to make more money at this job, so now what?
Living beyond your means. If they learn from it, then it’s a good thing for them.
Psst, Kent and Mysti, it’s called ‘saving up for a rainy day.’ Look into it.
Well the idea is that even 95% of subprime loans perform and are profitable.
The money lost is because the originating companies, like New Century, could no longer bundle and sell because nobody would buy.
And it wasn’t that nobody would buy because 50% were delinquent, it’s because they expected 96% to be performing and when they found out only 94% performed, all hell broke loose and they stopped buying.
On a similar note, what really gets me is that I read the CEOs of BearStearns was getting a 10million bonus. For virtually tanking the company.
You're all heart. I hope no one ever talks about your daughter, sister, or mother that way.
He’s young, so he hasn’t worked as long as the rest of the people in my small group. (He’s late 20s, and the rest of us are pushing 50.)
He also overspent his money. I know he did not have much (if any) money in savings when he bought his home and he didn’t put anything down on his home. I know he also got some sort of strange loan. He was counting on the market going up, and him building equity in the home. Well, the market didn’t go up.
Fifteen years ago, my husband and I didn’t have much money, but we didn’t overspend our money. When we bought our first home, we put 10% down and we got a 30 year fixed loan. We also had money in our 401K plan and some other savings in case of emergency. It wasn’t a lot of savings, but we had some. Then we slowly added to that savings, and didn’t overspend. We never expected to get rich quick. We never planned to make money from our home (but we did).
Well, now we have quite a bit of money, and we have lots of equity in our home.
Hmm this couple reminds me of the movie Fun with Dick and Jane...
Nuh unh. If you’re living on the beach and driving a SUburban and HAD a gardener, don’t go sucking more blood from the biological father, who may very well have been cuckolded when Mystie first met Kent!
Anyway. These people will all "rebound" (not that many fell that far in absolute terms). Most people at the top would find themselves back there in short order even if you were to take all their current material possessions (an exception is made for some who inherited, but I digress).
Rainbow Stew by Haggard Merle
There’s a big, brown cloud in the city,
And the countryside’s a sin.
An’ the price of life is too high to give up,
Gotta come down again.
When the world wide war is over and done,
And the dream of peace comes true.
We’ll all be drinkin’ free bubble-ubb,
Eatin’ that rainbow stew.
When they find out how to burn water,
And the gasoline car is gone.
When an airplane flies without any fuel,
And the satellite heats our home.
One of these days when the air clears up,
And the sun comes shinin’ through.
We’ll all be drinkin’ free bubble-ubb,
An’ eatin’ that rainbow stew.
Eatin’ rainbow stew in a silver spoon,
Underneath that sky of blue.
All be drinkin’ free bubble-ubb,
An’ eatin’ that rainbow stew.
You don’t have to get high to get happy,
Just think about what’s in store.
When people start doin’ what they oughta be doin’,
Then they won’t be booin’ no more.
When a President goes through the White House door,
An’ does what he says he’ll do.
We’ll all be drinkin’ free bubble-ubb,
Eatin’ that rainbow stew.
Eatin’ rainbow stew in a silver spoon,
Underneath that sky of blue.
We’ll all be drinkin’ that free bubble-ubb,
Eatin’ some rainbow stew.
Eatin’ rainbow stew in a silver spoon,
Underneath that sky of blue.
All be drinkin’ that free bubble-ubb,
Eatin’ rainbow stew.
Inflation Blues by B.B. KING
Hey Mr. President
All your congressmen, too
You got me frustrated
And I don’t know what to do
I’m trying to make a living
I can’t save a cent
It takes all of my money
Just to eat and pay my rent
I got the blues
Got those inflation blues
You know, I’m not one
Of those high brows
I’m average Joe to you
I came up eating cornbread
Candied yams and chicken stew
Now you take that paper dollar
It’s only that in name
The way that buck has shrunk
It’s a lowdown dirty shame
That’s why I got the blues
Got those inflation blues
Mr. President
Please cut the price of sugar
I wanna make my coffee sweet
I wanna smear some butter on my bread
And I just got to have my meat
When you start rationing
You really played the game
And things are going up
And up and up and up
And my check remains the same
That’s why I got the blues
Got those inflation blues
My wife worked for a smaller sub-prime lender in Orange County in the HR department. She wanted to know why I couldn’t be more like the the top salesman who was 24 years old, made $385K in 2006 and drove a Bentley. Now that’s saving for a rainy day.
Fortunately for my newly unemployed wife she has me with the boring aerospace job to fall back on, but she better start being a lot nicer :).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.