606 - Foreclosure stories and hard to sell homes
Thursday, September 17, 2009
Lori and Bill DiBacco - These two blame their problems on a child that came to live with them. The child forced them to spend $50,000 at sylvan learning center ($10,000 more than the most expensive college in the country charges, which makes this almost certainly a lie.) and then forced one of them to stay home full time so that "someone" would be around. Not that children could do things like GO TO SCHOOL or CAMP or DAYCARE for far less money than his lost income costs, or even in many cases nearly free. (YMCA camps, public schools, etc.)

Ron Nash - a headhunter who by all accounts should be wealthy based on the typical headhunter's income, ran out of money because of excessive debt. Not only did he have the initial ARM (aka scam) mortgage on the home, purchased at a price well above the actual value of the home, but he also took out more debt on the home later. If Ron had taken out these loans from the mafia, would anyone have thought it was a sensible thing to do? It is also interesting to note that Ron is a motivational speaker. Do you really want someone who can't manage his own life to motivate your employees or students? Motivate them into bone crushing ($5000 a month, most of which pays down interest and lost home value) debt? Make no mistake, it is sensible at times to get a home or take out a loan. For education and other things, it is probably a good long term plan. But don't take out loans you can't repay. Some day it won't be as easy as just walking away and letting a bank deal with the fallout.

Life after Foreclosure - CNN

Million Dollar Misses - CNN

For once, I will resist the long rant about a CNN article. This is a short rant. Obviously I still read CNN. com every day. From time to time, however, it looks like CNN takes the wrong angle on a story. I think these two slide shows are interesting and informative, but I also think they miss the point. In short - everything you see or hear indicates that these people are victims, that they are suffering from a bad economy or bad luck. It should be noted quickly that these people have more money than the average American, and thus, far more money than the average person on Earth.

They purchased homes mostly on ARMs, resulting in low initial interest rates, and then higher and higher rates later. They knew how this kind of thing works, or if they didn't, were unforgivably ignorant about the largest financial transaction of their life. In a few cases, people stopped working to "spend time with kids" or at worst, someone was injured resulting in lost income. Yet all too often there is a spouse who isn't working. In the end, if you make a deal and owe a debt, you have an obligation to pay it off. In New York we have a saying: "Pay someone back if you owe them money."

Again I ask: What is so wrong with renting an apartment (or even a house)? Why do you have to buy one if you can't really afford it?
posted by High Power Rocketry @ Thursday, September 17, 2009  
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