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CNBC: Job losses to cause more foreclosures
- Thread starter gmarc
- Start date
Lynnie
SoWal Insider
Funny- good one- love a sense of humor!
maybe someone has helpful info about foreclosures- not my field...
Avoid it.
TooFarTampa
SoWal Insider
I don't think either, honestly. The "economy," especially when you think about it globally, is a bigger engine than any government. It is not possible to control the economy, is it? Not in this country. It is going to shake out the way it shakes out. As 30A shopper, SHELLY and others have pointed out numerous times on this board, there are certain trends to watch for and every time we have hit one it has been terrifying. :shock:. There seem to be at least a few more coming -- mortgage resets, commercial mortgage defaults, the possibility of deflation turning quickly into inflation.
The only thing the government can do at this point is possibly help us avoid a massive banking meltdown. I think both Bush and Obama have done that in the past six or so months. But there may well be great cost down the line. However, doing nothing would certainly have been disastrous -- a massive crater that would have been tortuous to dig out of.
It's a gamble either way.
So to the OP: If you can truly afford the house you just purchased, just settle down and enjoy your good fortune. Make some memories. Regardless of its value in a year or two, it's a good shelter for these tumultuous times.
Robert and Kay Richards live in the center of this trend. In 2006, they took a 30-year, fixed-rate mortgage — a prime loan — borrowing $172,000 to buy a prefabricated house.
They erected the building on land they owned in the northern Minnesota town of Babbitt, clearing the terrain of pine trees with their own hands. Mr. Richards worked as a truck driver, hauling timber from a nearby mill. His wife oversaw the books.
Together, they brought in about $70,000 a year — enough to make their monthly mortgage payments of $1,300 while raising their two boys, now 11 and 16.
But their truck driving business collapsed last year when the mill closed. Mr. Richards has since worked occasional stints for local trucking companies. His wife has failed to find clerical work.
“Every month that goes by, you get a little further behind,” Mr. Richards said.
Last June, they missed their first payment, and they have since slipped $10,000 into arrears. They are trying to persuade their bank to cut their payments ahead of a foreclosure sale.
Am I the only one thinking that if Mr. and Mrs. Richards got a job doing yard work, cleaning houses, etc. They would have had no problems covering the $1300 a month to pay their mortgage. My pool guy comes for an hour and gets the equivalent of $30/hr. Housekeeper gets the equivalent of $25/hr. Yard guy $25/ hr. Even if they didn't have the ingenuity to find clients for these jobs, they could get jobs at restaurants or retail making $8-10/hr. and combined bring in $40-50k per year.
They erected the building on land they owned in the northern Minnesota town of Babbitt, clearing the terrain of pine trees with their own hands. Mr. Richards worked as a truck driver, hauling timber from a nearby mill. His wife oversaw the books.
Together, they brought in about $70,000 a year — enough to make their monthly mortgage payments of $1,300 while raising their two boys, now 11 and 16.
But their truck driving business collapsed last year when the mill closed. Mr. Richards has since worked occasional stints for local trucking companies. His wife has failed to find clerical work.
“Every month that goes by, you get a little further behind,” Mr. Richards said.
Last June, they missed their first payment, and they have since slipped $10,000 into arrears. They are trying to persuade their bank to cut their payments ahead of a foreclosure sale.
Am I the only one thinking that if Mr. and Mrs. Richards got a job doing yard work, cleaning houses, etc. They would have had no problems covering the $1300 a month to pay their mortgage. My pool guy comes for an hour and gets the equivalent of $30/hr. Housekeeper gets the equivalent of $25/hr. Yard guy $25/ hr. Even if they didn't have the ingenuity to find clients for these jobs, they could get jobs at restaurants or retail making $8-10/hr. and combined bring in $40-50k per year.
scooterbug44
SoWal Expert
That only works when those jobs are available - there isn't a lot of call for $30 an hour pool boys in N. Minnesota - especially in towns w/ populations of less than 2,000 - and where other people have also lost jobs from the mill closing. These people clean their own houses, do their own yardwork, and have a lake instead of a pool when times are good.
There are many people to vilify in the current crisis, but I don't think the Richards should be at the top of the list. A 30 year fixed loan on a primary residence where the mortgage payments were less than 1/4 of their income isn't exactly the height of fiscal irresponsibility. Neither is trying to get the bank to reduce your payments after both wage earners lose their jobs and their temporary work won't cover it.
There are many people to vilify in the current crisis, but I don't think the Richards should be at the top of the list. A 30 year fixed loan on a primary residence where the mortgage payments were less than 1/4 of their income isn't exactly the height of fiscal irresponsibility. Neither is trying to get the bank to reduce your payments after both wage earners lose their jobs and their temporary work won't cover it.
Not trying to villify the Richards. They might be the exception to the rule, but I have had alot of people turn down or quit at their $10/hr. 40 hr week job with benefits. There are alot of jobs out there for people who are willing to work in Sowal and the surrounding area.
scooterbug44
SoWal Expert
The problem is that the Babbits live in a small town in Northern Minnesota so their options are more limited. The population of their town is less than what Seaside claims including pets.
I know a lot of people competing for the available jobs in Sowal, especially the Admin/Office manager jobs.
I know a lot of people competing for the available jobs in Sowal, especially the Admin/Office manager jobs.
Beauty hunter
Beach Fanatic
drivingtheview
Beach Lover
This just in;
CNBC also reporting that consumption of more calories than burned to cause weight gain
CNBC also reporting that consumption of more calories than burned to cause weight gain