Can't go X-Mas shopping this year on the ol home equity

[compuwiz1]

People say they can't go shopping on home equity loans this year

(AP) -- Jackie Castleberry won't be playing Santa Claus this year

She usually buys her grandchildren, nieces and nephews lots of gifts around the holidays -- bicycles, educational games, clothes -- but this year she is just struggling to keep her North Las Vegas, Nevada, house.

The interest rate on her four-bedroom home loan shot up in October and she is $6,000 behind on her payments. She now owes $168,000 on her home, which once was worth $220,000 but is now worth about $150,000.

Part of me is really going WFT! People borrowing against home equity for xmas shopping? Great! Only in America. :roll:
Not so sure I feel sorry for them.

 

[Sinsear]

Originally posted by: compuwiz1
People say they can't go shopping on home equity loans this year

(AP) -- Jackie Castleberry won't be playing Santa Claus this year

She usually buys her grandchildren, nieces and nephews lots of gifts around the holidays -- bicycles, educational games, clothes -- but this year she is just struggling to keep her North Las Vegas, Nevada, house.

The interest rate on her four-bedroom home loan shot up in October and she is $6,000 behind on her payments. She now owes $168,000 on her home, which once was worth $220,000 but is now worth about $150,000.

Part of me is really going WFT! People borrowing against home equity for xmas shopping? Great! Only in America.b :roll:

It seems like people will sell their souls to buy xmas gifts and get the latest and greatest.

 

[teclis1023]

People make financially stupid decisions to placate consume whims instead of investing and putting their money where it needs to be. I've done it too - not quite to that extent. It really shouldn't be such a surprise - it's the way this entire country runs. We're running on a deficit which has gotten so huge, it can only be discussed in abstraction.

 

[compuwiz1]

Originally posted by: teclis1023
People make financially stupid decisions to placate consume whims instead of investing and putting their money where it needs to be. I've done it too - not quite to that extent. It really shouldn't be such a surprise - it's the way this entire country runs. We're running on a deficit which has gotten so huge, it can only be discussed in abstraction.

Yep, it's a shame people have to live by creating yet more debt. And, yes, I've done it too. When we as a people have no more equity and only ever increasing debt, then what? This will not end well.

 

[jman19]

Originally posted by: Sinsear

Originally posted by: compuwiz1
People say they can't go shopping on home equity loans this year

(AP) -- Jackie Castleberry won't be playing Santa Claus this year

She usually buys her grandchildren, nieces and nephews lots of gifts around the holidays -- bicycles, educational games, clothes -- but this year she is just struggling to keep her North Las Vegas, Nevada, house.

The interest rate on her four-bedroom home loan shot up in October and she is $6,000 behind on her payments. She now owes $168,000 on her home, which once was worth $220,000 but is now worth about $150,000.

Part of me is really going WFT! People borrowing against home equity for xmas shopping? Great! Only in America.b :roll:

It seems like people will sell their souls to buy xmas gifts and get the latest and greatest.

It's sad to see such a lack of discipline in this country 🙁

 

[Sinsear]

Originally posted by: compuwiz1

Originally posted by: teclis1023
People make financially stupid decisions to placate consume whims instead of investing and putting their money where it needs to be. I've done it too - not quite to that extent. It really shouldn't be such a surprise - it's the way this entire country runs. We're running on a deficit which has gotten so huge, it can only be discussed in abstraction.

Yep, it's a shame people have to live by creating yet more debt. And, yes, I've done it too. When we as a people have no more equity and only ever increasing debt, then what? This will not end well.

But I'm willing to bet that you've learned from that mistake; whereas most in that situation will not and cannot make the changes and develop the discipline necessary to fix it.

 

[BradAtWork]

Err, people in heaps of countries use their home equity for crap.

 

[IronWing]

Originally posted by: BradAtWork
Err, people in heaps of countries use their home equity for crap.

Yes, but this America. We have the most user friendliest system for screwing yourself financially in the whole wide world of sports. Every month my bank tells me how I can use my home equity to fund a big screen TV, a vacation, an extra special Christmas, or just roll around naked in my new found cash. With just a click of a mouse I can have an instant home equity loan. The money will simply fall out of my house and into my checking account. I'd be a fool not to get the things I want, right now.

 

[Slew Foot]

IIRC, you own a car dealership near Sacramento, how's your business going?

BTW, Ill be needing a new car in a few months, can you hook me up? 🙂

 

[Pabster]

Originally posted by: teclis1023
People make financially stupid decisions to placate consume whims instead of investing and putting their money where it needs to be. I've done it too - not quite to that extent. It really shouldn't be such a surprise - it's the way this entire country runs. We're running on a deficit which has gotten so huge, it can only be discussed in abstraction.

Yep. Greenspan says that he regrets that "trillion" no longer speaks accurately of the problem.

 

[Rainsford]

The more I hear about all these financial problems, the less I think I understand them. They almost all seem to center around a pretty basic problem, spending more money than they are taking in. What could be simpler than that? Your income is 'X', your spending is 'Y'. If Y is not smaller than X, you're going to have problems. But apparently it's brain surgery to a lot of people.

Actually, I DO understand the problem...our culture cultivates the idea of money for nothing. The idea that things that sound too good to be true usually are seems lost on most people, so everyone pretends that there is such a thing as free money.

 

[compuwiz1]

Originally posted by: Slew Foot
IIRC, you own a car dealership near Sacramento, how's your business going?

BTW, Ill be needing a new car in a few months, can you hook me up? 🙂

Hi to you, long time. 🙂

I do not own a car dealership, I work at one. I am the director of finance at a BPG store. (Buick Pontiac GMC). The whole industry is on it's lips. GM is trying to gain sales by offering 1.9 - 0% interest, but still, there are few takers. Much of our sales in the previous few years came from home equity. Many of those buyers are now in forclosure. Their credit scores are plummeting and they want to trade in their big cars for more fuel efficient ones, but they no longer qualify for prime lending programs.

I'd hate to speculate what this all means.

 

[SlickSnake]

Originally posted by: compuwiz1

Originally posted by: Slew Foot
IIRC, you own a car dealership near Sacramento, how's your business going?

BTW, Ill be needing a new car in a few months, can you hook me up? 🙂

Hi to you, long time. 🙂

I do not own a car dealership, I work at one. I am the director of finance at a BPG store. (Buick Pontiac GMC). The whole industry is on it's lips. GM is trying to gain sales by offering 1.9 - 0% interest, but still, there are few takers. Much of our sales in the previous few years came from home equity. Many of those buyers are now in forclosure. Their credit scores are plummeting and they want to trade in their big cars for more fuel efficient ones, but they no longer qualify for prime lending programs.

I'd hate to speculate what this all means.

You need to find a new job in auto repossessing? :roll:

 

[Skitzer]

Originally posted by: compuwiz1
People say they can't go shopping on home equity loans this year

(AP) -- Jackie Castleberry won't be playing Santa Claus this year

She usually buys her grandchildren, nieces and nephews lots of gifts around the holidays -- bicycles, educational games, clothes -- but this year she is just struggling to keep her North Las Vegas, Nevada, house.

The interest rate on her four-bedroom home loan shot up in October and she is $6,000 behind on her payments. She now owes $168,000 on her home, which once was worth $220,000 but is now worth about $150,000.

Part of me is really going WFT! People borrowing against home equity for xmas shopping? Great! Only in America. :roll:
Not so sure I feel sorry for them.

This is just sad. Her kids should be actively involved in reining in her spending habits.
I'd be having some serious discussions with my Dad if he did this kind of crap!
And yeah ..... it's way too easy to get financing now a days.

 

[EagleKeeper]

I may stop buy and see if she will unload her place for $140 (depending on the neighborhood).

Much would depend on the equity she has and the area.

 

[Jaskalas]

Originally posted by: Sinsear

Originally posted by: compuwiz1

Originally posted by: teclis1023
People make financially stupid decisions to placate consume whims instead of investing and putting their money where it needs to be. I've done it too - not quite to that extent. It really shouldn't be such a surprise - it's the way this entire country runs. We're running on a deficit which has gotten so huge, it can only be discussed in abstraction.

Yep, it's a shame people have to live by creating yet more debt. And, yes, I've done it too. When we as a people have no more equity and only ever increasing debt, then what? This will not end well.

But I'm willing to bet that you've learned from that mistake; whereas most in that situation will not and cannot make the changes and develop the discipline necessary to fix it.

That's when Darwin?s observations of nature come into play. Survival of the fittest, those who can adapt, etc.

The most interesting aspects of such natural results, given their current relation to what we?re doing, is when society as a whole shares and takes on and then drowns in taking on the insurmountable task of propping up all these people.

Then we will one day learn how Darwinism applies to entire societies and that ours is not immune to natural selection either.

 

[teclis1023]

Originally posted by: compuwiz1

Originally posted by: teclis1023
People make financially stupid decisions to placate consume whims instead of investing and putting their money where it needs to be. I've done it too - not quite to that extent. It really shouldn't be such a surprise - it's the way this entire country runs. We're running on a deficit which has gotten so huge, it can only be discussed in abstraction.

Yep, it's a shame people have to live by creating yet more debt. And, yes, I've done it too. When we as a people have no more equity and only ever increasing debt, then what? This will not end well.

I have completely quit using my credit card for anything except emergencies. At one point I had about a $1500 balance, but I've since paid that off. That's about the worst I've been in.

 

[Starbuck1975]

Part of me is really going WFT! People borrowing against home equity for xmas shopping? Great! Only in America. Not so sure I feel sorry for them.

You should see the home ATM dynamic in SoCal...when my wife and I moved out here 3 years ago, we couldn't understand how people in our income bracket can afford rather expensive luxury cars, annual vacations to exotic locations, designer clothing and other materialistic symbols of affluence.

Then we came to realize...most of them can't afford these things...they are up to their necks in debt, using phantom equity in their inflated bubble home prices to fuel a lifestyle of excess.

Well the double digit appreciation home equity party is over...sure, this little financial shell game worked while home prices skyrocketed, and some financially lucky or intelligent individuals made a killing in the market of the past several years.

Not anymore, and I really don't feel sorry for those about to lose their homes due to greed, materialism and stupidity.

 

[blackangst1]

And we wonder why the housing market continues to crumble.

 

[Slew Foot]

Consumer spending is what, 2/3rd of the economy? And how much of that was home equity related? We're in for a world of crap when the piper needs to be paid.

 

[Trianon]

Originally posted by: EagleKeeper
I may stop buy and see if she will unload her place for $140 (depending on the neighborhood).

Much would depend on the equity she has and the area.

She has no equity, read the article, she owes a ton of money

 

[dmcowen674]

Originally posted by: compuwiz1

Originally posted by: Slew Foot
IIRC, you own a car dealership near Sacramento, how's your business going?

BTW, Ill be needing a new car in a few months, can you hook me up? 🙂

Hi to you, long time. 🙂

I do not own a car dealership, I work at one. I am the director of finance at a BPG store. (Buick Pontiac GMC). The whole industry is on it's lips. GM is trying to gain sales by offering 1.9 - 0% interest, but still, there are few takers. Much of our sales in the previous few years came from home equity. Many of those buyers are now in forclosure. Their credit scores are plummeting and they want to trade in their big cars for more fuel efficient ones, but they no longer qualify for prime lending programs.

I'd hate to speculate what this all means.

It means Cherry

 

[child of wonder]

The way the economy is going is exactly why I keep telling my wife we need to save, save, and save some more.

We drive old cars but they're paid for 100%. No chance in hell I'm financing a new/used car right now. Tomorrow I could get laid off (work at a bank) as could she (works in car insurance company that is losing money).

The last thing we need is more debt.

In fact, IIRC isn't inflation projected to start increasing at a high rate? Might not be a bad time to invest savings into something tangible like gold or silver.

 

[wirelessenabled]

Originally posted by: compuwiz1
People say they can't go shopping on home equity loans this year

(AP) -- Jackie Castleberry won't be playing Santa Claus this year

She usually buys her grandchildren, nieces and nephews lots of gifts around the holidays -- bicycles, educational games, clothes -- but this year she is just struggling to keep her North Las Vegas, Nevada, house.

The interest rate on her four-bedroom home loan shot up in October and she is $6,000 behind on her payments. She now owes $168,000 on her home, which once was worth $220,000 but is now worth about $150,000.

Part of me is really going WFT! People borrowing against home equity for xmas shopping? Great! Only in America. :roll:
Not so sure I feel sorry for them.