Foreclosures - Page 2

Ari · 06-21-2008, 09:34 AM

Originally Posted by Mark

Excellent information everyone. Neal, I will definitely check out that episode.

I do want to mention another thing that is getting people in financial trouble. So many other products that we buy on a daily basis are costing more money now that the gas prices are so high. I hate to beat a dead horse but when the cost of groceries, utilities, insurance rates, etc. go up and our income stays the same or sometimes goes down, it is causing people major problems. Most people I know haven't had raises in years. Some have had to take a decrease in pay just to keep their jobs. While the workers are losing money just to stay employed, everything around them is costing more money. Our cable bill just went up recently. Same with our home loan because we were short in escrow so we have to make that money up over the next 12 months. Escrow is usually short for the first 5-10 years of a person having a mortgage. At least that's my experience anyway.

Yes, I think rising prices for nearly everything combined with stagnant or decreasing wages are causing problems for a lot of people. My husband is a scientist at our state university, and we're waiting to hear whether he'll get any pay raise at all this year. He does get some funding from outside sources, but the raise from the state may be zero. My sister is also a state employee, and she has had no raise or a raise of 1% every year for the last 6, which hasn't at all kept up with rising prices. It's a tough economy.

Originally Posted by Mark

Oh' and by the way, my neighbor who lost his house... his lender is Countrywide. I have heard many negative things about them as well so it is no surprise that they would not be taking care of that property. The city did show up today and cut the grass. Now it is just a matter of time to see if Countrywide starts taking care of things.

Countrywide is a mess. It is under so many investigations and lawsuits that it's hard to get the full picture. This includes investigations by the FBI, Justice Departments, the DOJ's US Trustees, the SEC, and the Attorney Generals' of many states. They are facing possible class actions in several states. It's stock price has plummeted from above $45 a share to under $5. It's looking to be rescued by a sale to Bank of America. Many BoA shareholders are objecting, and I can completely understand why. The sale will allow BoA to offset its own taxable income with Countrywide's losses, meaning that the US taxpayers are taking a hit. Meanwhile, the Countrywide CEO is expected to get a bonus of over $100 million when the sale closes this fall. This in a company that has laid off more than a fifth of its workforce and lost billions.

Kim · 06-21-2008, 12:37 PM

I have mixed feelings on all of this, because even though prices of things are rising, I still don't think that should make such a big difference for people. I see the way people spend money. Our friends just took a trip to Jamaica, yet are complaining about gas prices. We see people come in the gas stations who put $5 in their gas tanks and also spend $5 on cigarettes or lottery tickets. If people were making conservative money choices they wouldn't feel so affected. Yes, it sucks that I spend almost $50 more a week in groceries than I did at this time last year - but the dollar is weak and there's nothing I can do about that. If it seriously was pinching the bank account THAT much then we would find ways to cut our spending in other areas. It's not like we NEED to spend $150/month on cable or NEED to spend $100/month to have people cut our grass for us. If we needed to we could make those lifestyle changes and I think that even people who are basically living month-to-month can find ways to make little changes here and there that would save money. Sorry to get off on a tangent, because I know that there are definitley folks that have cut back as much as they can and still struggle - but at the same time I kind of feel like that is not just usually bad luck but bad decision making somewhere along the line.

Mark · 06-22-2008, 11:37 PM

Kim, I understand what you are saying. My wife and I also just took a trip to the U.S. Virgin Islands. While we are affected by rising costs of everything, we used tax return money to go. Without that money, we would not have been able to go. Doing it this way allowed us to not affect our financial situation negatively by having to tap into our savings knowing that costs are rising. I feel that if you are able to do something like this without modifying your ability to pay your bills then it should be OK to go on a trip once in awhile. Sure we could have used the money spent on that trip elsewhere but if all we do is make money to put toward bills and never take the opportunity to get a break from all the madness, then what's the point? People need a break once in awhile and I am happy we got that opportunity.

Just because we did go to the Virgin Islands does not mean we have no right to complain about rising gas prices.

Especially when gas prices do affect our financial situation and the trip did not.

Trina · 06-23-2008, 09:40 AM

Mark, I think Kim is referring to people who can't pay their bills yet still make foolish big purchases. They are always claiming poverty yet continue to make bad financial decisions. I know of people like that.

Kim · 06-23-2008, 10:15 AM

Originally Posted by Trina

Mark, I think Kim is referring to people who can't pay their bills yet still make foolish big purchases. They are always claiming poverty yet continue to make bad financial decisions. I know of people like that.

Exactly. We have friends who are ALWAYS complaining about their credit card debt, yet they charged a trip to Chicago and $300 Counting Crows tickets. What really gets me though is the people who come in the gas stations and yell at the attendants about the gas prices and "oh gas prices are so high I'm going to have to move out of my house, I can't afford these gas prices" and then proceed to spend money on junk food,lottery tickets, and cigarettes. HELLO - you would be able to afford your house payment if you quit blowing your money on stupid crap! It's a huge pet peeve of mine.

Ari · 06-23-2008, 10:31 AM

Originally Posted by Kim

I know that there are definitley folks that have cut back as much as they can and still struggle - but at the same time I kind of feel like that is not just usually bad luck but bad decision making somewhere along the line.

I agree about making prudent choices.

But with regard to foreclosures, the bad decision-making started with the homebuyer and went all the way up the line. The managers at the two Bear Stearns hedge funds that went belly up and helped triggered the investment bank's demise made the decision to put highly leveraged bets on subprime mortgage collateralized debt obligations. They lost, folks called in their chits, and the place was gutted. If Bear Stearns, which had been filled with some of the best in the its area, can make such a big miscalculation, things are deeply out of whack.

Fallon · 06-23-2008, 12:07 PM

I think one of the biggest difference is that here in MI people aren't really spending anymore. Almost everyone is suffering because of the economy. Best Buy is at risk right now of going out of business here and the malls are basically empty. There's really no waiting at the restaurants anymore and down almost every street you can find at least one foreclosure. When I was on Vaca it was funny to hear people ask if it's really as bad as they have heard (that's when things really sunk in for me because we aren't really having a hard time but sooo many are) and people would comment that it was nice to actually see people from MI on vacation. people here are losing their butts because they lost jobs they really thought the would have forever

Kim · 06-23-2008, 12:21 PM

I understand the hardships there in MI because of the layoffs - and that is completely different from the situations here or in other parts of the country where people lose their houses because they make bad money choices.

I do think though that people should be putting money away for emergency savings in case something happens and someone does lose a job. We have one year of house payments in savings just in case something should happen. Nothing lasts forever.

Fallon · 06-23-2008, 01:46 PM

Originally Posted by Kim

I understand the hardships there in MI because of the layoffs - and that is completely different from the situations here or in other parts of the country where people lose their houses because they make bad money choices.

I do think though that people should be putting money away for emergency savings in case something happens and someone does lose a job. We have one year of house payments in savings just in case something should happen. Nothing lasts forever.

I agree with you. My DH makes a large amount of his money on commissions but we refuse to count on that money so we live off his actual pay (bills, food, home, car) that way anything in commission is for extras and saving

Kim · 06-23-2008, 02:35 PM

that' s what we do too - i get quarterly bonuses from work and that goes straight into savings.

06-21-2008, 12:37 PM	#12
Kim I can change my own title Join Date: Feb 2008 Location: St. Louis, MO Posts: 2,796 My Mood: Rep Power: 39 Reputation: 311 Children Hannah and Megan	I have mixed feelings on all of this, because even though prices of things are rising, I still don't think that should make such a big difference for people. I see the way people spend money. Our friends just took a trip to Jamaica, yet are complaining about gas prices. We see people come in the gas stations who put $5 in their gas tanks and also spend $5 on cigarettes or lottery tickets. If people were making conservative money choices they wouldn't feel so affected. Yes, it sucks that I spend almost $50 more a week in groceries than I did at this time last year - but the dollar is weak and there's nothing I can do about that. If it seriously was pinching the bank account THAT much then we would find ways to cut our spending in other areas. It's not like we NEED to spend $150/month on cable or NEED to spend $100/month to have people cut our grass for us. If we needed to we could make those lifestyle changes and I think that even people who are basically living month-to-month can find ways to make little changes here and there that would save money. Sorry to get off on a tangent, because I know that there are definitley folks that have cut back as much as they can and still struggle - but at the same time I kind of feel like that is not just usually bad luck but bad decision making somewhere along the line. __________________

06-22-2008, 11:37 PM	#13
Mark Proud Father Join Date: Jan 2008 Location: Michigan Age: 34 Posts: 3,587 My Mood: Rep Power: 47 Reputation: 308 Children Alexandra (9), Sean (4)	Kim, I understand what you are saying. My wife and I also just took a trip to the U.S. Virgin Islands. While we are affected by rising costs of everything, we used tax return money to go. Without that money, we would not have been able to go. Doing it this way allowed us to not affect our financial situation negatively by having to tap into our savings knowing that costs are rising. I feel that if you are able to do something like this without modifying your ability to pay your bills then it should be OK to go on a trip once in awhile. Sure we could have used the money spent on that trip elsewhere but if all we do is make money to put toward bills and never take the opportunity to get a break from all the madness, then what's the point? People need a break once in awhile and I am happy we got that opportunity. Just because we did go to the Virgin Islands does not mean we have no right to complain about rising gas prices. Especially when gas prices do affect our financial situation and the trip did not. __________________ Are you new to NowParenting? Come and introduce yourself here! Sign up for NowParenting Mail, Chat, Calendar, Documents, and more... Click Here! If someone posts something that is helpful, consider giving them reputation points! Come and join the Computer Users group here at NowParenting. *"Miracles Happen!"*

06-23-2008, 09:40 AM	#14
Trina NowParenting Addict Join Date: Feb 2008 Location: CT Age: 46 Posts: 808 My Mood: Rep Power: 20 Reputation: 374 Children DS (13) and DD (11)	Mark, I think Kim is referring to people who can't pay their bills yet still make foolish big purchases. They are always claiming poverty yet continue to make bad financial decisions. I know of people like that. __________________

06-23-2008, 12:07 PM	#17
Fallon who needs sleep.... Join Date: Jan 2008 Location: Michigan Age: 28 Posts: 5,197 Rep Power: 62 Reputation: 281 Children Debralyn, logan, and Madeline	I think one of the biggest difference is that here in MI people aren't really spending anymore. Almost everyone is suffering because of the economy. Best Buy is at risk right now of going out of business here and the malls are basically empty. There's really no waiting at the restaurants anymore and down almost every street you can find at least one foreclosure. When I was on Vaca it was funny to hear people ask if it's really as bad as they have heard (that's when things really sunk in for me because we aren't really having a hard time but sooo many are) and people would comment that it was nice to actually see people from MI on vacation. people here are losing their butts because they lost jobs they really thought the would have forever __________________ SAH mommy to Debralyn 10-21-02 and Bubba (Logan) 3-19-07 Madeline 07-10-09

06-23-2008, 12:21 PM	#18
Kim I can change my own title Join Date: Feb 2008 Location: St. Louis, MO Posts: 2,796 My Mood: Rep Power: 39 Reputation: 311 Children Hannah and Megan	I understand the hardships there in MI because of the layoffs - and that is completely different from the situations here or in other parts of the country where people lose their houses because they make bad money choices. I do think though that people should be putting money away for emergency savings in case something happens and someone does lose a job. We have one year of house payments in savings just in case something should happen. Nothing lasts forever. __________________

06-23-2008, 02:35 PM	#20
Kim I can change my own title Join Date: Feb 2008 Location: St. Louis, MO Posts: 2,796 My Mood: Rep Power: 39 Reputation: 311 Children Hannah and Megan	that' s what we do too - i get quarterly bonuses from work and that goes straight into savings. __________________

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