Posted on 04/28/2014 8:59:49 AM PDT by george76
” The study found that they have to cut back their spending far more than those with a reserve they can tap more readily.”
Where is Captain obvious when you need him?
If the bank auctions the property and gets less than you owe, you still owe the difference, even though you no longer have the house.
A better scenario is to put the house on the market. If it won't fetch enough to pay off the loan, then try to convince the mortgage holder that a short sale is in their best interest.
The 2007-2008 financial crash is proof those with MBAs are as stupid or naive as the rest of us. Mortgage backed securities based on the assumption property values cannot go down - when all assets can devalue - was either stupid, naive or deliberate deception.
Note, too, that when you do this, your credit rating takes a tremendous hit.
You have to debate with yourself and your family the pros and cons of this approach.
Just be careful out there.
CA....
live a little, eat two eggs.
My wife finally quit her job and it had very little financial impact on us. It actually costs a lot of money for both husband and wife to work outside the home.
Back then, two eggs would have been too expensive, leaving me with no cushion. Now I live more than a little (and still spend significantly less than I take in).
People need to save at least ten percent of their earnings (excepting for special situations of course). People with very low incomes can often save a little each week or month. It adds up over time.
There is something missing in the education of the young if kids grow up without learing how to save some of their money.
(Perhaps their public schools are wasting too much time teaching our kids all sorts of sex?)
My son-in-law and family is living from pay check to pay check and he is making a lot more then $41,000. Daughter can’t find a job and she has a Master’s degree.
41K??
Who they kidding?
After all the taxes what’s that? 28k??
Make sure to tell the mortgage holder you will continue to maintain the property to the best of your ability. Better yet, ask them about a HAMP modification, and keep a copy of all of your correspondence. It will come in handy if you need to write your Congressman, or contact the state Attorney General's Mortgage fraud task force.
The great melt down of a few years ago removed many of these pay check to pay check people from the so called middle class ranks.
Would it be a safe bet that in many of the families now living on pay check to pay check have a new or recent I Phone or similar Smart Phone for every member of the family and an expensive family monthly service, plus a smart tablet for about every member just to keep up with their extensive social media sites?
Do they have one of more large screen HD tvs with the most expensive cable/satellite and internet service available in their homes.
Do they download movies as fast as they come out for multiple viewing on their smart phones, pads and other digital processing/display units and up load and down load massive amounts of so called personal photos from social media and their own creations.
They contribute a minimum if anything to their 401k’s or IRAS.
They have zero educational funds for their kids.
If they donate to a church, it might be $5 every Easter or Christmas.
They have no problem walking by a Salvation Army kettle trying to raise money for food in their areas.
They were for Obama care until they found out they had to pay for the increased services most don’t need.
They stop at Starbucks every morning for an expensive coffee and some sweet dessert instead of brewing their own coffee and preparing a good breakfast for everyone in their family at less cost then their Starbucks daily bill.
Last but not least, if they post on Free Republic, they are Freep Loaders, and never contribute a penny, because they “don’t” have any money to spare.
That democrat recovery program is just kicking a$$ I guess.
The key point here is that American prosperity has been declining for a long time, since the first Bush, and that massive debt, public and private, has kept living standards from falling much until the collapse in 2008. Had it not been for increasing personal debt, the Clinton years would have not have seemed as good economically as they did. Same with the Bush years, but add massive gov’t debt to that.
Good post.
Dave Stockman’s book indicates the number of “breadwinner” jobs in the US has been declining since 1998.
However the Democrats understand how to win national elections based on massive debt and the voting core of the Entitlement Army.
The party will continue until the markets someday start puking on our debt.
You bet...Some acts surprised that people making 41k per year have no assets, savings etc...Private sector wages have been stagnate for 15+ years and millions then had their hours and jobs cut, slashed or just eliminated, not to mention losing all their benefits medial etc...
All this while on the flip side millions of retired government public servants receive *double* what the 41k median income workers earn working. ??
And these people act surprised by what's happening?
This is get much worse....Bet the rent.
But that might mean some research and onerous number-type work for the journalistas, wouldn't it.
Leni
I find it infuriating that some conservatives, mainly old baby boomers say stuff like “forty thousand is good money, why are these people complaining.” Forty thousands is not good money in most parts of the country. It’s enough to pay for the basic necessities of a first world lifestyle with nothing left over to save. Making 40 a year is like making 15 a year in the 80’s.
“Private sector wages have been stagnate for 15+ years...”
This is the most important fact in any discussion of America’s economy. Conservatives better come up with a plan focused like a laser on making incomes rise for the broad middle of Americans or conservatives will disappear as a major force in American politics as the baby boomers die off.
Public employee pensions are too high, but focusing on government workers is reminiscent of the crabs in the barrel pulling back the ones closest to escaping. Most people are going to ask “why are private sector workers paid so little” when conservatives start complaining about public sector salaries. Some conservatives give the impression that they want everyone in America to be working under the wages and conditions of WalMart “team members” and that anyone who wants better is a spoiled, entitled communist. That kind of attitude has to go if conservatives want to get enough votes from younger Americans to stay viable.
For the longest time on this site, many global free traders came out of the wood work to deny wage stagnation existed and to promote that off shoring jobs was a good thing in the grand scheme of things. They didn’t listen back then (before the 2008 collapse) and most of them don’t listen now. The reality of the situation unfolding has at least quieted them down some.
Yep. I’ve been reading FR since the late 90’s. During the W Bush era, whenever someone posted an article about how the official unemployment figures were a crock or that incomes were rising slower than inflation, most Freepers dismissed the truth as anti-Bush propaganda and insisted that the economy was doing better than ever. Anyone who told the truth then was called a shill for Democrats.
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