Millions Spend Half of Income on Housing

AP Via WalletPop ^ | September 23, 2008 | ADRIAN SAINZ and ALAN ZIBEL

[rightwingintelligentsia]

MIAMI (Sept. 23) - Al Ray is so strapped for cash, the only time he eats out is on Wednesday or Sunday, when the local McDonald's sells hamburgers for 49 cents.

[mgc1122]

Buy a smaller house, Ray. One you can afford next time.

[Heartland Mom]

So get another job or live in more affordable housing.

[RockinRight]

McDonald’s is “eating out?”

[politicket]

Buy a smaller house, Ray. One you can afford next time.

Or better yet...rent. Not everyone "deserves" a house and it sounds like his asset allocation is so poor that he is not financially prepared for home ownership.

[RockinRight]

Well...although I’ll say that in some places, “affordable” housing is still $200 grand...I really can’t say this guy’s life sounds so horrible.

Growing up we ate out less often than that and did OK.

[jmpmstr4u2]

Well, if you want something bad enough, you make cuts where needed. Sounds like he needs to either find a higher paying job, sell his house and move into an apartment or quit bitchin. Owning a house is not a right contrary to growing popular beliefs...

[NoGrayZone]

When I was growing up, eating out, even just getting a large onion ring that everyone shared, from Burger King, was a treat. Is everyones hands broken? Can people NOT cook at home anymore???

[verity]

[VOA]

Millions Spend Half of Income on Housing

Not a shock, given the housing mania.

Even Isaac Newton could only avoid investing in the "bubble"
of his day for just so long (something like the South
Seas Company, IIRC).

What I've been told is that his personal papers contain his
diary entries of how people were unwisely investing in some
venture to exploit the new-found resources at the edge of the world.
And finally he was sucked in, invested some of his wealth.
Then lost his investment along with plenty of other
otherwise smart folks.

[ikka]

Go work for UPS or FedEx during the morning or the evening, whatever hours they have for you. One person I know put himself through law school that way.

[mplsconservative]

Subway on Sunday is our usual routine. Of course, I’m a fabulous cook and it’s something I enjoy so we’d rather eat at home.

I like the once a week break and our son snarfs down his turkey footlong. We’ll probably have to buy two for him when he hits the teenage years. It’s in the budget. :)

[Oldexpat]

Three years ago we sold a condo in CA to a schoolteacher. Her principle, interest, taxes, and condo fee were to total $1850 per month. We had been getting $1300 for rent.
The state of CA had a program to help teachers afford housing..and she barely qualified.
We sold because we thought the market was starting down and the unit is now worth 30% less. She should have stayed renting. Many nearby units are now in foreclosurer.

[ejonesie22]

Back end of story, millions of “home owners” were allowed to buy homes with no credit, with payments beyond their abilities because Democrats want the American dream to be “fair” via ordering private finical institutions to give loans they would never even process otherwise...

Don't worry pal, we'll be gettin' that bill for ya, soon as congress meets again...

[Between the Lines]

And yet, the deal will not help Dolly Hanna, 51, and her husband, who bought five homes in the San Francisco area over the past 20 years, and were enjoying life during the housing boom by renting them out...

Getting a loan during the boom was easy, Hanna knows. Too easy.

Oh boohoo. They have five houses they cannot afford.

[11th Commandment]

Buy a smaller house, Ray. One you can afford next time.

You can't be serious? Why, when the bailout comes and the fed buys his mortgage (or takes over his Fannie or Freddie loan), the government will negotiate the mortgage by discounting the principal and lowering the interest. Then Ray will be eating Ruby Tuesday hamburgers and schleps like you and me will be working our butt's off repaying our mortgage and subsidizing good ol Ray's!!!!!

[Not A Snowbird]

Hmmm. My housing costs are only 12% of my income.

I must be doing something wrong.

[Don'tMessWithTexas]

Me and the missus bought a neat bungalow with hardwood floors on a double lot in a small town. We could probably afford something bigger and better, but we love our little place, it’s gone up in value, and when all the kids are out we will have lots of room.

[mlocher]

"All you had to was massage the information enough to fit it into their round hole, and they gave us a mortgage," Hanna said.

Hanna makes it sound like the bankers held a gun to her head and made her take out the loan. Of course, she admits that she lied to the bankers. You reap what you sow.

[econjack]

Since Ray is a 44 year old engineer, he's probably a pretty bright guy and anticipated this. Now’s the time for Ray to dip into his IRA so he can keep his house. While Uncle Sam wants to hit Ray with a 10% penalty for early withdrawal (it would be worse if Queen Nancy has her way), you gotta do what ya gotta do in tough times. At least he would get to keep his house until another job comes along. If Ray doesn't have an IRA, well...grasshopper...ant...

Who knows, maybe Charlie Rangel can forget his legal problems long enough to actually do some tax code changes that would give people in Ray's situation a break (not sure he can sell Queen Nancy on it, however). Oh wait...Ray's probably classified as “Upper Class”, no help there. Sorry Ray, Charlie and Nancy say you're screwed.