April 04, 2008

Housing nightmare: Your home is crashing in value, you lost your mortgage broker job, you can't refinance, and you've maxed out your home equity loan

So what is the "Ultimate Great Housing Crash Nightmare Scenario"?

You just know there are a millions and millions of people who made really bad decisions these past few years, who are regretting them now. Kent and Mysti from the other day were a good example, but there's many more out there even worse off than that.

So what's the worst it can be?

My take - anyone who's housing screwed can just walk away. Turn in the keys. Go rent. Find a new job. It's just money, it wasn't your house anyway, and there are more important things in life.

And next time, don't listen to anyone on commission. They'll screw you every time.


Frank@Scottsdale-Sucks.com said...

"Housing nightmare: Your home is crashing in value, you lost your mortgage broker job, you can't refinance, and you've maxed out your home equity loan"

Come on Keefer, stop making fun of the average Scottsdale resident. It's not nice.

tangelo mozilo said...

Worst case scenario is Kent and Misty, or someone like them. They have all their eggs in one basket: real estate. When a family is leveraged to the hilt in real estate, and both incomes come from the same subprime lender, and they have no buffer of savings outside their retirement accounts, and they have enormous monthly obligations, that is the worst-case scenario.

Some people on that thread made fun of Misty for her jewelry-manufacturing idea. I know it's kind of hare-brained, and is unlikely to bring in much money, but it's a hell of a lot better than Kent's idea, which is to invest more time, effort, and money into real estate by becoming a broker.

Misty is into small-scale "manufacturing" now. I thought that's what people on this board wanted.

Anyway, problems like this can be avoided by diversifying your investments and having different employment than your spouse. Also, it helps to save for a rainy day during times of plenty, rather than spending your quarter-million combined income every year, and then some.

Mammoth said...

"Housing nightmare: Your home is crashing in value, you lost your mortgage broker job, you can't refinance, and you've maxed out your home equity loan"

And if that isn't bad enough, Ramen has doubled in price to 4 for $1.

Anonymous said...

You guys should read these short stories from Americans struggling to get by. Unbelievable the stupid financial and life moves that people do, and then they get surprised when things go sour. And demand bailouts for their own stupidity. They have 7 children and cry about how tough things are. No wonder types like Bush/Cheney get elected twice in this country.


But I tell you what, I just became a hardcore Republican. I got tired of caring for stupid and oblivious people. Plus everyone is selfish out there and ready to jump in a ponzi scheme without measuring the consequences to society. So I just became a Republican who sees people just like another mark to be gamed. I had enough. Oh, and count me in for the next bubble/ponzi scheme.

Did you see how the market shot up at opening after the bad unemployment report? Just like I said it would. I say great! I'm playing the game, too. No more Mr. Nice guy from me. It's all rigged and I love it now.

I won't even criticize Frank and Ed anymore. I just went to the dark side to join them. F*ck America and f*ck Americans. You are nothing but a mark to me from now on. If I have the opportunity to game you, I will.

I'm just watching Fox and Glen Beck from now on. Bush is my new hero. The men's gotta point: Americans aren't worth it, so he works for his pals and maintains detached from the ignorant sheeple. I finally understand Bush and Cheney and they have my admiration and respect. After looking at this Obama circus, for instance, I know why New Orleans was ignored during Katrina. Because it should; the people are not worth it.

Nothing like seeing the light. Everything my parents taught me and what I had learned in private Catholic schools were just a lie. I just realized that I shouldn't care for stupid people and just take care of my own. Screw the fellow man. McCain, you got my vote and I'm sending my contribution today. I hope you get elected and bomb the hell of everyone and neglect the Obama base.

Anonymous said...

There won't be soup lines, just welfare lines.

Anonymous said...

The greedy pigs killed the goose that laid the golden egg.

Anonymous said...

Greg Swann and his wfe are both REALTWHORES

Anonymous said...

It proves once again that we don't learn lessons from one generation to the next. The frugal people of the post 30s depression era are all dying off and the investment mistakes of the 20s are being repeated by a younger generation that also, like the 20s "Gatsbys" want everything NOW.
This will backfire like you wouldn't believe.

Anonymous said...

Average Americans don't understand basic math. Therefore, they are easily victimized by their own stupidity. Is it any surprise that ignorant people with low self-esteem fall victim to marketing? These marginal people were never meant to live such a lavish lifestyle in the first place. Hopefully, they enjoyed it while it lasted. They will end up where they belong, living in a 2 bedroom apartment driving used cars. Goodbye Corvettes, Ocean View Mansions, and Designer Handbags. Boo-Hoo. Maybe they will change their priorities and actually start paying attention to their kids so they don't end up as wanna be Paris Hilton lesbo bar sluts.
Well, now maybe I'm being unrealistic.

LOL said...

Or you can just stay in your home payment free for 18 months ..


Anonymous said...

The guy across the street just went into foreclosure.