Thursday, March 27, 2008

Welcome to Subprime Hell!


Executive summary: single mom formerly making $70K/year loses job, forced to get food stamps.

Particularly disturbing: "She has had to take extreme measures to pay for her interest-only mortgage of $2,500 a month. "

Interest-only loan of $2500 per month is $30,000 per year?! Even at 10% interest (which is almost impossibly high), that's a THREE HUNDRED THOUSAND DOLLAR HOUSE. For a single mom making $70K per year! How does that happen?

I used to think that "predatory lending" was BS. I've changed my mind.

Note that I still hold the buyer accountable as well for for doing something so heinously irresponsible, but a buyer shouldn't even have that option!

Is the recession going to get worse? My guess is yes.


Blogger Christopher J. Bottaro said...

Holy Jayzus, people are idiots!

Aimee always has to remind me, most people live out of their means.

We're in the minority with how little debt we have and how we invest instead of spend frivolously.

We do have Vettes though... :D

12:01 AM  

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