Posted on 06/08/2011 8:01:42 PM PDT by Jim 726
I wish I was in the position this woman started in... having a paid off house.
That about sums it up. Used her house as an ATM, and got burned. So sad, too bad... but why should people who refrained from such foolishness be required to bail her out?
Sounds reasonable...</sarc>
Yes, that was my first thought. What a dumb thing to do.
For $200,000 she could have built an additional house. Sounds like some contractor took her to the cleaners.
And she is only the tip of the iceberg. All those new cars, trips around the world, boats, condos in exotic places, timeshares, the children’s and grandchildren’s college expenses, etc. and then the cash cow died. How sad and unfair ... who to blame it on?
She wants to pay $600 a month on a $200,000 loan...
Well at an interest rate of ZERO it would just under 28 years to pay that off...
What the hell did she expect? Free money?
While true that she probably shouldn’t have pulled $200k out, or any, the fact remains that people ARE being mislead on loan mods, which, are hard to get and only being offered to people who are not paying.
The other thing I noticed...based on the $200k loan size, her payment increase wasn’t due to the “rate going up” as much as that her introductory negatively amortizing payment period was expired...and she had to start paying back principal.
Not only refrained from such foolishness, but paid extra in the form of points to get a lower locked in rate. So now not only do I have to pay my mortgage, plus the points, plus a rate that was higher than her low adjustable rate, but now I should have to help her pay her mortgage???
How about someone helping me? How about adjusting MY mortgage?! I’ve never missed a payment, took a part time job to help make ends meet, I don’t go to Disney, never buy “new” cars and I just canceled cable to save money.
Why is it always me that has to pay to help these people?
It was probably LESS THAN Interest Only, an “Option ARM.”
An artificially low payment that doesn’t even cover the interest, but when the loan balance increases to where it’s more than about 115% of the original amount, you have to start paying back principal plus all the month’s interest.
“What the hell did she expect? Free money?”
Yup. Zero interest loan for x years most likely. Of course, the bank assured her it was a good idea, I’m sure.
What a mess...
Feds Cite Schumer In Collapse Of IndyMac
http://www.freerepublic.com/focus/f-news/2152809/posts
Flowers, Soros, Michael Dell team to buy IndyMac
http://seattletimes.nwsource.com/html/businesstechnology/2008583219_apindymacsale.html
caveat emptor doesnt cover Con men and grifters...
thanks. I just now read about “option ARM”. Man, what a freaking scam. It sure sounds like that that’s what that lady had. The math fits.
At 70 she’s old enough to remember the inflation, high interest rates and adjustable mortgages of the 1970s. She was paying a mortgage then and probably grateful that she had a fixed rate.
$600 a month is never going to pay off a 200K mortgage.
http://maps.qpublic.net/cgi-bin/bay_alsearch.cgi
“Hall, Lindsey” returns no matches on PCB property tax rolls.
“Hall, Linda” has only only one return that is close to a beach house and thats a condo in a tower.
It’s astonishing how many people just have no clue about personal finance and economics topics. It’s just not that hard. Maybe something needs to be done at the High School level, to give more people some basic clue about how to deal with basic financial decisions.
This person clearly didn’t know bad advice when she got it.
There’s a relative of mine, some sort of step-aunt or something... she and her husband both have had good, well-paying jobs. Before the big crash they were into a third mortgage on their not-yet-paid-for house— all of that money borrowed went for vacations and cruises and other travel. Every penny they made was being sunk into those loans. They had no savings anymore, and of course massive credit card debt. They’d buy lavish presents for themselves on their cards, and then merely pay the minimum payment... never touching the principal, which just grew, and grew...
I simply don’t understand it. How can anybody be that big of a financial disaster?
That article says "Linda prides herself on her ability to pay her own way. She paid cash for her car. She doesn't have credit cards. She saves up to travel."
Prides herself??? She admits in the newer article she bought that stuff with money she borrowed on her house. Paying cash for a car and paying off credit cards is easy when you borrow against your home.
Don't be an ass. It's the agreement the bank made with her. If that wasn't sufficient, they shouldn't have made the loan. You're blaming her for the bank's foolishness.
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