<p>The new job that the wife, who hadn’t been employed in twenty years, hadn’t gotten yet?</p>
<p>And that she didn’t know she was expected to get…</p>
<p>“we are so risk adverse that we just could not, would not buy beyond what we could afford.”</p>
<p>That’s not being risk averse. That’s exercising good judgment. You can be a risk preferrer and still have common sense. Race car drivers like risk, but that doesn’t mean they wander around the track on foot.</p>
<p>Here’s another link to the* Today* show interview, as I could not get the link cited previously to work the day following the show.
[Hulu</a> - NBC TODAY Show: Reporter Chronicles Personal Mortgage Meltdown](<a href=“http://www.hulu.com/watch/73625/nbc-today-show-reporter-chronicles-personal-mortgage-meltdown#http%3A%2F%2Fwww.hulu.com%2Ffeed%2Frecent%2Fvideos.rss%3Frd%3D0]Hulu”>http://www.hulu.com/watch/73625/nbc-today-show-reporter-chronicles-personal-mortgage-meltdown#http%3A%2F%2Fwww.hulu.com%2Ffeed%2Frecent%2Fvideos.rss%3Frd%3D0)</p>
<p>It seems to me that he and his wife have spending problems apart from the house debacle. You just cannot splurge financially even in celebration when you are on a tight budget. I remember the days when we just did not have the money and that meant making do with what we had in the house. No spending. Forget organic veggies, health foods, etc. Looking for that package of ramen left in the cupboard or fishing for dinner invitations is what you do. Forget new clothes, forget shopping.</p>
<p>I complain a lot since we are on an austerity regiment that squeezes us more than I like. However, it is a luxury even getting to shop at Dollar Tree, Good Will, Salvation Army. When you don’t have the money you can’t shop anywhere. Every cent has to go to the rent/mortgage, utilities and other life necessities. You start looking up soup kitchen locations and ask for family to give you angel meals as gifts. </p>
<p>I think the writer thought that once they had two incomes and things were rolling along, it would work out just fine. Easy to do that until you are without any money.</p>
<p>I also notice that he talked about the “risk” associated with taking out such a large mortgage with little income to support it.</p>
<p>Given the figures he was working with, I wouldn’t say any risk was involved- it was a foregone conclusion that they would fall behind on their payments.</p>
<p>his take home pay (after child support and alimony is subtracted) is about what mine is for the month. My mortgage payment (incl real estate taxes and homeowners insurance) is $665.</p>
<p>Your rent should be about 1/4 of TAKE HOME pay, not gross income (even though that’s what the ‘experts’ will say.</p>
<p>Here in the NYC area, many families pay half their take home check out to mortgage or rent. You cannot find a safe place in this area for $665 a month. My son is looking for a room at that price in some iffy neighborhoods.</p>
<p>I read the piece. Was it possible for him to make it if he had truly scrimped? I mean like not buying anything and cutting that budget to the bone? </p>
<p>If things pan out for him, if he makes money on his writing and talking about his problems, he just might make it, though if he and his wife cannot rein in their spending, they’ll never have enough money.</p>
<p>Cpt, in NYC, even in the outer boroughs, you may be able to get by without a car. Also, NY has free entertainment and fun stuff. </p>
<p>I dont think the Mrs. was willing to skimp – if he made millions, my guess it would be gone in 5 years. My guess – no college fund for any of the kids, minimal retirement funds, and we know no equity.</p>
<p>Their spending doesn’t bother me; it’s the fact that they bought that house in the first place. They could cut back their spending to only absolute necessities and, with that mortgage, they still wouldn’t have enough money to survive.</p>
<p>“Given the figures he was working with, I wouldn’t say any risk was involved- it was a foregone conclusion that they would fall behind on their payments.”</p>
<p>Yes, that’s an important point. The only way to avoid it would be the wife finding a six-figure job immediately – and even then, it sounds like she’d spend all the surplus on luxuries.</p>
<p>^^Becha the kids get finaid.</p>
<p>With the parents, stepparents income (and we dont know about the two left behind), there will still be a large EFC. My guess is the kids will go to a public U and still max out loans, etc. The parents (at least the two losers in the article) likely wont qualify for a parent loan, so the kids can extra unsub Stafford.</p>
<p>In his New York Times article and his book, the husband somehow omitted to mention that his now-wife has declared bankruptcy twice, once when married to the other husband, and then again, as soon as she was legally able to declare a second time, in 2007 while married to this husband.</p>
<p>I’m sure he just forgot to bring this subject up, an understandable memory failure. Anyone could end up bankrupt. Twice. While having a six figure salary.</p>
<p>But Cardinal Fang, I’m sure that she was in love when she filed.</p>
<p>
</p>
<p>Both times.</p>
<p>OK, now our man who follows the economic condition of our Country is proven to not know bad financial news when he sees it. I’m never reading another of his stories and in fact canceling my subscription.</p>
<p>Cardinal Fang, how did you find out about the bankruptcies?</p>
<p>Kayf, I am about 2 miles from any bus or train stop and am not in an outlying area. It is also a treacherous 2 miles to walk as there is no shoulder, and the road is hilly and curvy. Cars regularly go off and hit the rocks on the side (my son was driving one). There are metal rails to help prevent that, but any speed and slippery road conditions and it is a problem.</p>
<p>Many of our county schools do not bus. My district only buses if you live more than 2.5 miles from the school, which means high school and elementary schools have no buses. So you have to drive. Stores, restaurants, etc are also outside the 2 mile circle. You really do need a car to live around here.</p>
<p>cpt – I meant for your son, living in NY. Please accept my apoligices if I was not clear. I did say in NYC. Were you talking about Staten Island? That is in NYC , but not where recent grads want to live – even if not inManhattan, they are looking more to Brooklyn. </p>
<p>Lurkness, Patricias BK filings are in PACER, the federal Public Access Courts Electronic Re?.</p>
<p>Not only has Patricia filed BK, but that at least one creditor is allegeing fraudeelent filings in that she did not disclose husbands income.</p>