IHB needs a resident bull on board

NEW -> Contingent Buyer Assistance Program
Okay since I couldn't make this up this is an "actual" caller to a financial radio program I heard yesterday. My jaw was on the floor:





Income:


2004 $700,000


2005 $400,000


2006 $100,000


2007 $30,000


Occupation: Realtor (husband) Stay at home Mom (wife)


Number of children: 7 (!)





Money quote: "we are a $30,000 a month family"





Debts:


$850,000 primary residence


$150,000 vacation home


$100,000 IRS


$120,000 credit cards


$200,000 personal loan





I guess this is the proverbial "millionaire next door"
 
<em>" Money quote: "we are a $30,000 a month family""</em>





The sense of entitlement in that statement is both disturbing and amusing. Bankruptcy and living on $30,000 a <em>year</em> will be difficult for them to adjust to.
 
I am reminded of that commercial from a couple of years ago where a guy is sitting on his riding mower talking about his big house, multiple cars, etc. and then says "So how do I do it? I'm in debt up to my eyeballs."





I loved that commercial. How true it is.





Before you try keeping up with the Joneses, make sure they're not trying to keep up with you.
 
I love that "debt up to my eyballs" commercial. It was done done!



Interesting that ISM mentioned someone she knew had multiple luxury cars, vacation homes, etc. Not sure if it is just me, my experiences have been that most of the folks in Irvine are not as superficial as those let's say coto and ladera ranch. Currently, I Iive on a street with 10 homes ( all million plus single families), guess how many luxury cars we have on the street? TWO!
 
<a href="http://www.youtube.com/watch?v=hn5EP9StlVA">Here it is.</a> Thank goodness for YouTube.





The solution, of course, was no solution at all. It was merely buying time.
 
<p><strong>Ten Rising-In-Value Real Estate Markets</strong></p>

<p>http://www.forbes.com/forbeslife/2007/11/08/homes-housing-property-forbeslife-cz_do_1108housing.html</p>
 
<p>Add Irvine to the list</p>

<p><a href="http://www.ocregister.com/news/font-mso-border-1920628-windowtext-solid">www.ocregister.com/news/font-mso-border-1920628-windowtext-solid</a></p>
 
I do loans for people and I can tell you many, many people are living paycheck to paycheck. In fact they are spending more each month than they bring home!





Yes, there are people that have a lot of money, but they will put large down payments on properties. Not 80% to 100% financing. By and large Orange County is a county of middle to upper middle-class working families. The wealthy multi-national families, athletes, celebrities, and executives are few and far between. They are far outnumbered by the pretenders.





On Friday a 34 year old contractor from Dana Point was in my office. He has a 685k neg am and a 118k HELOC on his house now "worth" 900k. No chance of refinancing, FICO of 677 and LTV of 90%.





I walked to the door discretely to see what car he was driving...a seven series BMW. I went back to the credit report and sure enough he owed 59k still on it and his payments were 925 a month.





You see, this kind of situation is the norm. It is the rule, not the exception.
 
<p><em>34 year old contractor from Dana Point</em></p>

<p><em>to see what car he was driving...a seven series BMW.</em></p>

<p><em></em></p>

<p>What kind of contractor? Construction, general contractor? </p>

<p>Who hires a contractor when they show up in a 7-Series?</p>
 
He didn't want to go see the banker in his 909 ghettocruiser - a diesel F350 with the 8" lift and 37" tires that he uses to haul his toy hauler full of quads and the new sand car out to Glamis twice a year.
 
<p>Translation: Commerical "one-ton" pickup with lifted suspension, ginormous tires, used to tow a special RV trailer that can carry quadracycles (four-wheelers) and a dune buggy to a local off-road recreation area. Often found in "The 909" which is the original area code for the Inland Empire region of SoCal.</p>

<p>(Expensive stuff, in other words). </p>
 
<img src="http://images.truckinweb.com/brandpages/ford/0512_01z+2004_ford_f350_harley_davidson_super_duty+front_right_view.jpg" alt="" /> What are the tags for posting a picture or a link?
 
lending maestro, just to play devil's advocate. Wouldn't you be seeing more of these "wanna-be" rich types who are in trouble right now, since they are the ones in trouble and need to refinance? Obviously, the ones who are fine financially won't be visiting you. Just a thought...
 
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