Quote:
Originally Posted by WilsonFourTwo
Pretty pathetic isn't it?
Frankly, one couple I know in particular is barely getting by (+/- about 100 bucks each month?), but they followed a slightly different path.
They bought a home that was a little more cash intensive than ideal, but still reasonably affordable. Then they picked up a second car, raising their monthly cash needs even more.
This would have all been livable, but they bought in the "Your home is a piggybank" fantasy, and racked up a (shockingly) large amount of consumer credit over the past few years (Assuming they'd borrow against the house later on.....)
I actually suspect that this is a much more common/frequent chain of events than banks approving people who shouldn't get mortgages in the first place.
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Its the sad truth, lots of people bought into "housing never depreciates" and racked up their HELOCs or bought homes at the very top fringe of their affordability.
Many are just getting by with two full time income earners...a layoff, injury, family emergency or even a major repair bill away from serious cash flow issues. Lots of divorcing couples in the past little while with negative equity, essentially splitting up the debt. Now that is depressing.