Homeowners Feel the Pinch of Lost Equity

[cobra de capell]

Homeowners Feel the Pinch of Lost Equity
By PETER S. GOODMAN
Published: November 8, 2007

RENO, Nev., Nov. 5 — As his wedding day approached last spring, Marshall Whittey found that his money could not keep pace with the grandiosity of his plans. But rather than scale back, he chose instead, like millions of homeowners across the country, to borrow against the soaring value of his home.

He and his bride, Holly Whittey, exchanged vows on the grounds of a sumptuous private estate in the Napa Valley. They spent their honeymoon at a resort in Tahiti.

But now, in an ominous portent for the national economy, Mr. Whittey has grown tight with his money. His home is worth far less than it was a year ago, and his equity has evaporated. And like many other involuntary adopters of a newly economical lifestyle, he can borrow no more.

“It used to be that if I wanted it, I’d just go and buy it and finance it,” Mr. Whittey, 33, said. “I’m feeling the crunch, and my spending is down significantly.”

Until recently, he and his wife regularly embarked on shopping sprees of $1,000 and up.

He bought a 21-foot boat and two flat-screen televisions for their home. He sold his old truck and bought a new one, he said, “just ’cause I didn’t like the color.” Mr. Whittey could live in such fashion because his company was making good money and his house was appreciating.

But today, the value of his own home, which reached $500,000, has fallen and a separate investment property he bought seems likely to fetch far less than the $580,000 he owes the bank. His commissions have diminished, so his income is down. His neighbor recently fell behind on house payments, prompting the bank to foreclose. Anxiety reigns.

Snip...... http://www.nytimes.com/2007/11/08/bu...in&oref=slogin
______

Nothing really new in this story, but if you read the entire article it seems as if the writer thinks that we should feel sorry for this moron.

Of course, the NYTimes runs a "boo hoo" story about the housing crisis - no doubt, blamed on Bush, rather than Greenspan - and they find this moron! The guy borrows to finance his every little selfish whim, including buying a new truck because he didn't like the color of the old one. Coupled with the hubris of the California real estate market, this guy shows a real ignorance.

The Fed reduced rates to assist these morons and others with about the same story. Now the dollar is in the crapper and oil is near $100. Hold onto your wallet.

[392cobra]

Somebody needs to introduce the Whittey's to Dave Ramsey.

[Ron61]

The Redding paper had a big write up about the record number of foreclosures just in this area last weekend. About 5 miles down the road from me is a big plot that a couple of greedy developers had all bull dozed to build on and now they have 6 months to come up with several hundred thousand or it will be auctioned off at the Redding Court House steps next Summer along with several other properties. It seems that no one around here reads anything they sign.

Ron

[DAVID GAGNARD]

My wife has been in the banking industry since the age of 19, almost all of it in the loan department,and now as a loan officer.......

The first bank she worked at was a local family owned bank here in town.....the pres./owner/ceo probably turned down as many loans as he made and for good reason.........He did tell quite a few people this quote when turning them down for a loan......"you must learn to live within your means,and not like the Jone's".............

She comes home with some of the most stupid stories you could imagine about folks coming in to borrow money they know they can't pay back for the most stupid things you'll ever hear..........

The last one and one of the best was when some 30 something year old came in to borrow money for a boob job for his wife and he's already three months behind on his house note and four months behind on his car note!!!!!!!!!!!!! and now he's mad cause the bank will not give him the money for the boob job....you think he's mad now, what till he has to walk to work in a couple of months!!!!!!!!!

David

[Sizzler]

Originally Posted by DAVID GAGNARD

My wife has been in the banking industry since the age of 19, almost all of it in the loan department,and now as a loan officer.......

The first bank she worked at was a local family owned bank here in town.....

She comes home with some of the most stupid stories you could imagine about folks coming in to borrow money they know they can't pay back for the most stupid things you'll ever hear..........

The last one and one of the best was when some 30 something year old came in to borrow money for a boob job for his wife and he's already three months behind on his house note and four months behind on his car note!!!!!!!!!!!!! and now he's mad cause the bank will not give him the money for the boob job....you think he's mad now, what till he has to walk to work in a couple of months!!!!!!!!!

David

Glad to hear that client/banker privacy is still the rule, instead of a suggestion. Do you have access to the surgery files as well?

[DAVID GAGNARD]

Glad to hear that client/banker privacy is still the rule, instead of a suggestion. Do you have access to the surgery files as well?

BTW: In 31 years she has NEVER,EVER mentioned a name to me or anyone else for that matter.............

Surgery files???? Well, that may take a day or two, I have a lot of friends that work at the hospital!!!!!!!!

David

[Excaliber]

David,

[mn12]

Originally Posted by Sizzler

Glad to hear that client/banker privacy is still the rule, instead of a suggestion. Do you have access to the surgery files as well?

So did you find anyone to finance those boobs yet......

[Wes Tausend]

...

The railroad that I work for sends out a short newsletter each month to employees, about 5-6 paragraphs.

October 3rd paragraph lead says, "Although the economy continues to be sluggish, particularly in the housing sector and imports,...". I thought the "import" remark probably refers to less spending money for those "$1000 shopping sprees" which results in less Container shipping.

Somewhere else I heard that Harley-Davidson expects to take a hit since many new bikes were financed with equity money. I suppose the same is true for Cobra replica hopefulls and many other pricey toys.

Don't feel bad, David (I know you don't ). My wife tells me stories about Darwin Award Winners all the time too. She, too, just leaves out the names of the not-so-innocent. Some of her best stories were when she worked for H&R Block. But that's why she quit there. Spooky.

It is kind of irritating that the rest of us will end up paying for idiots like are described in CDC's post. I know some people that have pulled this B.S., counting on a bailout. They willingly sold their souls and I shouldn't have to hand my wallet to the devil.


...

[cobra de capell]

Originally Posted by Sizzler

Glad to hear that client/banker privacy is still the rule, instead of a suggestion. Do you have access to the surgery files as well?

Actually, sharing the information as posted is a problem, especially in a small town.

[1ntCobra]

http://www.rollingstone.com/rockdail...-captain-hook/

[Cobrabill]

Originally Posted by cobra de capell

Actually, sharing the information as posted is a problem, especially in a small town.

How so?As long as no names or addresses are mentioned,no laws,agreements or covenants have been broken.


Wes.i had to sue H&R because the preparer took all my adding machine tapes & receipts that she deemed"un-usable" and fed them into the shredder.

[cobra de capell]

Originally Posted by Cobrabill

How so?As long as no names or addresses are mentioned,no laws,agreements or covenants have been broken.


Wes.i had to sue H&R because the preparer took all my adding machine tapes & receipts that she deemed"un-usable" and fed them into the shredder.

Depending on how small the town is, one can occasionally guess who the 'banker' is talking about. An example from another field - an employee for a dentist told her husband about a patient who was a real looker in school, but fall into Meth use - most of her teeth are gone - the husband told me that although his wife didn't tell him the person's name, he readily knew who it was.

Some people will not bank with a local bank in a small town because directors, officers and employees talk about bank business - it's a problem and a constant point of discussion within the banking environment - keep your mouth shut or you will be fired, period.

[rdorman]

If I get this straight...... my house has gone up 413% in value over purchase price so I should buy the wife a boob job? What if she doesn't need one? Can I get the flat screen instead?

[Cobrabill]

Originally Posted by cobra de capell

Depending on how small the town is, one can occasionally guess who the 'banker' is talking about. An example from another field - an employee for a dentist told her husband about a patient who was a real looker in school, but fall into Meth use - most of her teeth are gone - the husband told me that although his wife didn't tell him the person's name, he readily knew who it was.

Some people will not bank with a local bank in a small town because directors, officers and employees talk about bank business - it's a problem and a constant point of discussion within the banking environment - keep your mouth shut or you will be fired, period.

I thought you were coming from a legal standpoint.Business-wise-you are correct.

[imagine2frolic]

An ex-girlfriend once asked me to buy her a boob job. I told her sure thing. One for Christmas, and one on the following year for Christmas. The subject was dropped.