Did you see the Clayton Couple on ABC World News Tongiht?

I feel pretty certain that, had that been the case, it would have been front and center of the news story.

 

I believe that article stated that he was a full time house painter, she has an office job, combined income of 80,000........when they purchased the house.

 

Agreed, and anyone with any common sense would drop the cable, cell phones, entertainment, etc. But they obviously don't have that, they signed up for a 9% ARM when ARM's could be taken for low 4's at that time. Boo freakin hooo.

 

I really want to feel sorry for these people but I can't. Even at the 9% they initially started off with, it was still $1384 a month. Making $80K a year, come on, the money only goes so far. There is something called a budget and of course the contract they signed with the adjustable rate. I would love a bigger house in a nice neighborhood, just one problem, we can't afford it. Everyone is feeling the pinch with the economy in a crappy position and gas prices around $3 a gallon. But then again, is it their fault for taking on too much or the banks fault for actually saying yes, we will lend you the money for the house you can't afford......

 

I am with you Nadia, I love Dave Ramsey! He is so straight forward! I am forced to drive by the house I wanted almost everyday. We bought a new house last spring, went to a lender and he told us we could afford the house I wanted! I was thrilled but when we saw the payment the enthusiasm quickly fell. We decided to live below our means, buy another house (which by the way I am so happy with) and mainly try to live on one income. We splurge occassionally but I am very happy with our smart decision! I wish I could have helped this couple.

 

It was hard for me to watch that video. The wife starting to cry as she said they did not have a home phone ... why do they need one? They obviously have some cell phones given the $330 bill. Houses are selling for $20K-$30K above tax value so sell the house. Sell the cars. Turn off the cable....

Something interesting ... via Johnston County deed records on-line... It appears (if I'm reading the documents correctly) this house went into foreclosure preceedings Nov. 2005 (home was purchased 10/2004) and again Apr. 2007. Yet the report showed them as an example of how the current economy is causing them not to be able to afford their home???? Perhaps the reporter should have done just a little more research and the couple should have sold the home in 2005.

I have no empathy for these people.

 

agreed, 1st thing i said to my wife....either they were stupid or didnt have great credit and were irresponsible with their bills, why should i feel bad for bad credit people?

 

Actually, in the video she stated she had NO job when they purchased the home. THEN they realized they needed her income.


To me, that speaks volumes.

 

Cleo is correct, let's face it folks, just because the bank says you can qualify for a certain amount of mortgage, doesn't mean you should! You need to be able to eat after you make that payment. I don't ever want to be "house poor". How can you enjoy it, if you can't really afford it?

 

I can't see the video at work. I could watch it later, but I'll ask the question now...

Did the Clayton Couple actually ask for help or make any suggestion themselves that they expected someone to come to their aid? Or were they just complaining, as anyone would if circumstances got out of hand.

I know what the media may have made it look like, but what did you get from the people themselves?

 

Clif, here is a quote from the first page of the article -

One part of the interview I want to point out is this -

Well, let's see. You were already high-risk, your credit IS affected when you do not pay bills such as your phone or electricity, so then you became an even a higher-risk, then you almost went into foreclosure not once but twice. The difference between 14% and 9% on a 172,000.00 loan is 5%. That's alot of money, almost 9,000.00. So yeah, it WOULD be so bad if they let you, high risk borrowers, keep an introductory rate of 9%. Otherwise who makes up the difference? The people who DO pay their bills as agreed. Now THAT would be so bad.
Reminds me of the people who get Payday loans, and then complain about their rates.

 

Yep, I think this story just backed up my thinking that most of the people that got themselves into this mess with the ARMs are irresponsible.

Whatever happened to personal accountability?

 

I get the feeling "We are living beyond our means now we have FIND SOMEONE ELSE to fix it" would be more like it. If someone else fixes their mistake, then they will just land up in financial trouble again. Sometimes you need to go through the pain of fixing your mistakes (ex:learn to live on a budget, sell stuff, maybe get a second job, etc) in order to learn and not make the same mistakes again. Spoken from experience.

 

Absolutely, I think a lesson is better learned through personal accountability.

Give a man a fish and feed him for a day, but teach him to fish and feed him for a lifetime.