13 Altimira
So why did folks borrow more on their homes rather than pay down their mortgage? Was there that much pressure to live lifestyles greater than those provided by our incomes? Somewhere along the way, the idea of paying off one’s home until one no longer had a mortgage became anochronistic.
13 Altimira was purchased in 2002 for $650,000. There wasn’t a lot of refinancing; just enough. One refi and one HELOC later and there is now trustee sale date set for 6/24/10.
C Delroy Spuckler
June 21st, 2010
anach·ro·nism
1 : an error in chronology; especially : a chronological misplacing of persons, events, objects, or customs in regard to each other
2 : a person or a thing that is chronologically out of place; especially : one from a former age that is incongruous in the present
3 : the state or condition of being chronologically out of place
FYI
June 21st, 2010
Meredith Whitney: The Rebound In Consumer Spending Is Just The Result Of People Not Paying Their Mortgages
http://www.businessinsider.com/meredith-whitney-us-consumer-rebound-2010-6
Featured Comments
Rick R. on Jun 21, 11:24 AM said:
From where I live, she is spot on.
In my son’s boy scout troop we have 12 kids from 12 families. Four families are not paying their mortgages.
Two of the fathers have told me that they have stopped paying their mortgages to “save” for their upcoming summer vacations away, and to buy other summer related things such as new stuff for their boats, new lawn furniture and/or grill, etc. Since these two fathers are close buddies I take it that one of the fathers convinced the other father to follow his lead.
One father told me he stopped paying because he had to cut somewhere. His wife was recently laid off. He justified not paying his mortgage by saying you’re young only once. And so he’s going to enjoy his youth even if it means not paying his bills. He tells me that he’ll cut back his lifestyle and live within his means when he’s old when he can’t do anything anyway.
One other father told me he stopped paying because he wants to see how things in the economy are going to play out. He thinks we’ll have a total collapse in society with a destruction of the economy. His feeling is to enjoy today and spend, spend, spend because when the bills come due there may be no one left standing economically to press for payment. He’s a regular listener to Glenn Beck.
One last father told me that while he’s been paying his mortgage, to get it done required him to run up his credit cards. He tells me that in August and the Fall he will switch over, and stop paying his mortgage so he can pay down his credit cards. That way he can use the credit cards come Xmas.
cdcrez
June 21st, 2010
For the last year or so it has cracked me up when Joe Kernan would get all worked up and try to attack Meredith’s data and opinion. She refused to cheerlead and it took a long time before anybody gave her the credit she deserves for being consistently right. Now, Kernan just has to sit and listen, as do all the other sheeple.
Soylent Green Is People
June 21st, 2010
Wonder what kind of neighborhood Rick R is from. This sounds normal for IE home owners. It sounds common for some OC areas, but if Rick R. lives in a Coto / Newport Coast area we’re in for a real ride. Imagine 1/3rd of the people who you know deciding it’s not in their best interest to pay their debt.
My .02c
Soylent Green Is People.
Alan
June 21st, 2010
Yes, but it sounds more like a Coto-type area than an IE-type one – “summer vacations away” and “stuff for their boats”. If those are significant expenses, then they are not thinking in terms of driving a couple of hundred miles and staying at Motel 6, or getting a new cushion to put under your butt while you row. Besides, in the IE wouldn’t you get foreclosed in about 6 months, instead of maybe 15 postponements and counting?