Yeah I know, did he just get a dvd player? Or just get the money to buy 50 dvd's a month? Makes ya wonder. Alternatively, if he's willing to spend money and wants to build a library of movies, why not blue ray? I don't think an intelligent argument exists for the reasoning behind buying 50 dvds a month.
if he did not refi - it turns out it was a great move. 1. he can accept the foreclosure and not owe any taxes or a deficiency to either lender. 2. He can wait for obama program and live rent free for close to year before the lender forecloses 3. He could hope the banks soon offer principle reduction voluntarily or higher and attorney who knows what he is doing and push the lender for a loan mod in which his payments are equal to 85% of the net present value the lender would receive after a foreclosure. (new california law to be litigated.) My advice would be wait for Obama's program watch home values drop 30% more and then seek to push the lender for a loan mod under the new law. Boom.. Otherwise take the foreclosure. (remember we are assuming these are purchase money loans - therefore non recourse). I do not feel sorry for this guy at all - if he is smart he can work the banks over pretty good.
Forget the guy and his wife....the kids are the ones I feel sorry for, regardless of their ages. This dope ( I think it may have been a typo and should have read 5 DVDs a month) and his wife can walk, but what people seem to forget is that there is not a hope in hell that they will ever get to BUY another house in at least 7 years from the time they walk. They simply will not have the minimum deposit nor credit rating that will give them the opportunity to buy a house. Even Fannie won't touch them for 5 years! This simple fact will also apply the other 2/3/4 million that walk or accept quick sales...so much for any housing recovery before the next generation:eek:
50 DVDs Average movie is about 2 hours. thats 100 hours per month watching movies. That basically means out of every month, he spends 2 1/2 weeks at home watching movies full time 8 hours per day. If he wants to pay off the house, maybe he should sell that DVD collection!
Great while it lasted, 90% investor owned, for many it was 3rd or 4th house they bought, no one lived in those houses, you could get a construction loan for 125%+ of value at the time. you couldn't get a subcontractor to return your calls, let alone give you better prices for their trades. 1/4 acre lots were going for $500 before the market went bust, at the top of the market they were 30K that was in 3 years. To sum it up, banks were throwing money at you, investors were throwing money at you, it was just too good to last.
no...this part from same show even better- George Carlin on "the American Dream" http://www.youtube.com/watch?v=kJ4SSvVbhLw&feature=related
if we have a depression it will not matter. If we do not when prices stop going down - people will start loan money to anyone who can pay it back. FICO 08 was being proposed by fair issac. it was held up because some major institutions said they wanted much more weight to be placed on ability to pay.