How does this happen?

[Lulu76]

Realtors are telling them that within a year, they will be able to buy another home and start over with a clean slate. I dont see that happening. End of rant.

If it does, then I'll be even more grumpy than I already am. I lost my job a few years ago, and while it was irresponsible, desperate times call for desperate measures and I tried to live on my VISA until I found something else. I got behind but I worked my hind-end off and as of last month, I am debt-free except for my student loan. Unfortunately, they tell me that because I chose to pay my bills instead of let them lapse it will be on my credit report longer and I won't be able to buy a house for a few years. That's OK because it gives me time to save up for one, but it really bothers me that those who don't pay their bills end up with better credit than those of us who keep paying after we fall behind.

[cass]

Lulu, I couldn't agree more with you! I currently am completely debt free. I have absolutely no outstanding credit. I saved my a#$ off over the last few years, and tried to buy an extremely modest home last year. I was denied even though I had 20% cash down in hand, and the same field of work for the last 20 years.

When I asked them to tell me why, they told me that it was because I didn't have hardly any credit. They told me that I shouldn't have paid my car off (I had about 1/2 a year left on it, and just decided to be done with the payments and paid it all)!

I know you have to have credit to build credit and all of that blah, blah, but it's just not right! A family member of mine turned right around and got approved for a house they could not afford and has a LIFETIME of bad credit! (this person has since lost their home to the bank).

I'm going to go live in the woods!

[pipanale]

Anybody still care about this saga?

They cleaned out the house this past weekend and have it all in a storage unit. It's looking like they have no plans to go back to it. Ever.

They're finding apartments nearer to where K works.

And, please don't ask questions about how they will get an apartment with no credit because I just don't know. They think that they can more or less give the deed to the bank before the foreclosure happens again and get off less bad that if they had actually foreclosed.

So what was the past 12 months? A time to play house?

I'm boggled by it. I'm, also in PA this week so my dear wife is trapped in the house with them and our very own disease factory.

But...they leave soon.

[Jo Ann - VA]

So they have lost any equity they may have in the house? I couldn't sleep at night.

I'm glad this situation seems to be coming to an end for you and your family Pip. I hope the couple have learned a lesson and will get on with a sucessful life!

[California Girl]

Anybody still care about this saga?

They cleaned out the house this past weekend and have it all in a storage unit. It's looking like they have no plans to go back to it. Ever.

I care about this saga, Rob! It takes the place of "As The World Turns". LOL!

So if they hav no plans to go back to it (I'm assuming you're talking about the storage unit?) then what was so all fired important about her "stuff"?? These people are scary crazy.

[RickG]

Good luck working this out. I know its been hard on your family and I hope that the tension dissipates rapidly.

The dinner topic with my kids last night was "What happens if there's another Great Depression?" It gets you thinking.

Cheers, RickG

[Lulu76]

I have been wondering what was going on. If you have a tracker, you'll see I checked your blog for updates.

Anyhow, I'm glad that they will be out of your hair, and I truly hope that they will be able to get their lives back on track.

[pipanale]

I've been bad updating over there. I think, soon, I'm going to pull all my posts form here and copy them into the blog. It's been easier to post a few paragraphs at a time rather than write a long-winded tome. I will, of course, give the board plenty of props and linkages.

[sailorgirl]

Thanks for the update. Stay strong!

[PA Girl]

I just found out this morning that one of our employees is likely going to do the same this as M & K, just walk out of the house and let the bank take it back.

[Lulu76]

I've been bad updating over there. I think, soon, I'm going to pull all my posts form here and copy them into the blog. It's been easier to post a few paragraphs at a time rather than write a long-winded tome. I will, of course, give the board plenty of props and linkages.

I'm not one to criticize anyone about their lack of blog updates. I'm like the cobbler who has barefoot kids. I write all day at work, and the last thing I want to do after writing articles all day is come home and blog!

I'm just glad that there's some resolution for you. I'm also glad that I read all the fine print when a realtor convinced me a few years ago that I could afford a house.

[PA Girl]

I'm also glad that I read all the fine print when a realtor convinced me a few years ago that I could afford a house.

Amen.

Our employee believed every thing the realtor and the bank told him. They went so far as to roll his truck loan (like $15,000) into his $70,000+/- mortgage. Of course, the house was over appraised and here he sits today feeling foolish and broken.

(this was a local bank that holds the mortgages in-house)

[Lulu76]

I feel bad about the folks who got sucked into the predatory lending, but you always have an obligation to know what you're signing before you sign it. And you know if you make $30,000 a year that you can't afford a $1,200/month mortgage payment.

I don't feel any sympathy to the banks. They got greedy and were stupid about their "investments." If any of us make stupid financial decisions we don't get a government bail-out.

[California Girl]

A few years back we got talked into an ARM. After about a year, we decided that this was not such a great idea, so we refinanced again to a 30 yr. fixed. We have managed to sleep every night without worrying that we wouldn't be able to afford our house payment next month. Maybe some people who couldn't qualify for a fixed rate got stuck with ARMs, but didn't have the foresight to know their payments would double or triple down the road? How can you not realize that?

[pipanale]

Our very first mortgage was a 5% down 40 year 5/1 ARM mortgage. It was a mess. It was also 1998. Our mortgage guy told us "Get out of this thing as soon as you have equity. Watch the market"

We did, and in 3 years, refinanced to a 30 year fixed and put $25,000 in repairs into the house. This raised our payment like $100. It also gave us new windows, central air, a new driveway...

A lot of people got into the mortgages with the low teaser rates figuring they'd have the equity before it kicked in.

Then the bubble burst.