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Termyn8or -> RE: Mortgage Meltdown (12/11/2007 10:38:16 PM)
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I had a buddy named Jim. I was at his house one day and he had the news going. On it was a story about an 80 year old taken for alot of money by a 20 year old. Of course she was going to marry him, but hadn't. At first I was taken a bit aback by the fact that Jim expressed absolutley no sympathy for the old guy.
The way he put it set me straight, if this guy is this stupid now, imagine the doofus he was before. That sunk in, and now to the point.
This is why they teach math in school. You buy a $100,000 dollar house at 12 % per annum. I only use these figures because they are easy, if your credit sucks so bad to have to pay 12, you should probably not do it.
Now simple math tells you that the first month's interest is $1,000. Anybody with a brain knows you must pay a bit more to amortize the loan. I saw it advertised, something like a $250,000 mortgage for $500 something a month. Come on, this is ridiculous. If you think this is a good deal I got this oceanfront property in Kansas.
Can't use Arizona any more, it might come true. If California really does ever fall into the ocean, AZ might be the place to be, next.
You have a $30,000 car, the payments are like $150 per month. Just what equity do people think they are gaining ? Or is it that they just don't care.
It seems like ownership is being phased out more and more, That is the trend.
My Uncle beat the system, he was to trade in his truck, and the price was stated on the lease that he was coming off of. He spoke of the low mileage and the lack of damage, but it all fell on deaf ears. He paid the truck off with a credit card, took it to another dealership and made a few grand on it. This time he bought, and paid off the card once the loan was in effect. That Man taught me alot.
I mean we are way ahead of the Carleton Sheets thing. The only problem is that in this economy it isn't worth doing. On three hundred grand worth of property we owe less than fifty. At one time, we borrowed TWICE the purchase price of the house. We are not babes in the woods. I would see this shit on TV and say SHUTUP, SHUTUP, SHUTUP !
Right now, the way the economy is, go ahead and buy yourself a plce, if you can REALLY afford it, and you want it. Don't expect to make any money, buy the house that suits you. But do not buy the house you can barely afford, buy the one you can afford more easily. You should buy no more than what 65% of what your credit will allow. That is my advice. Take it or leave it, but if you leave it, be ready to move.
Now we have Bush saving homeowners by declaring that banks can't execute a clause in their contract with their debtors, that they can't raise the interest to what the contract states after the introductory rate. This is compeletely unConstitutional when it comes to people, but banks are involved in commerce. This is pretty much akin to Nixon's wage and price freeze.
Fact is, in the grand scheme of things it does not mean shit. If you do not pay the lender, you lose your stuff, it really is that simple. Unless you can prove the they saddled you with unfair charges, you don't have a leg to stand on. Remember the guy you bought the house from ? Well someone wrote the check and gave it to them. You did not. As such they have a right to expect their money back according to the agreement.
I have very little sympathy for those who make $1,500 a month and take on an $800 mortgage payment.We need to be smarter than that.
All the current situation has done is to put more property in the hands of bankers. Just like during the "reconstruction". History does indeed repeat itself, if allowed.
Be careful out there.
T
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