too much house

stoveguyyDecember 30, 2013

"feel good" story in paper. single mom, 1 kid, metro bus driver. mom just got out of bankruptcy with ex. so, mom works overtime and saves $10k and buys new, $350k, 4 bedroom house. mortgage is about $1800? does that seem like a good plan? there are 1000's of $180k houses in area.

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emma

I think it is a risk but to me a home is the most important material thing I have and I want to keep it. Even if it is not my dream home.

    Bookmark   December 30, 2013 at 4:49PM
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dadoes

There's no way I'd buy a house for $350K if I had only $10K saved.

How'd she do that anyway? $10K is less than 3% downpayment.

    Bookmark   December 31, 2013 at 6:10PM
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stoveguyy

They 3-4 pics of house. She had 1 tv and small stand in 320sq/ft empty family room. Hey, I am all for the American dream and so on, but didn't she learn anything from her recent debacle with ex?

    Bookmark   January 4, 2014 at 12:38PM
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LuAnn_in_PA

Meh.
Why do you even care? Are you the ex?

    Bookmark   January 4, 2014 at 5:43PM
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Acadiafun

On one hand I think if this lady was working so hard to get to this point it is a well deserved reward.

On the other hand, I wonder if she is setting herself up for bankruptcy again. The taxes, utilities and upkeep on a larger, more expensive house will not be cheap.

    Bookmark   January 4, 2014 at 8:55PM
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stoveguyy

Story said she is known as the "overtime queen" at work. Makes 48k reg pay but 62k with OT. And how is she going to pay mortgage when gets sick of OT?

    Bookmark   January 5, 2014 at 12:52PM
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evaf555

We, the taxpayers, make good in our taxes for the banks that have losses from unpaid guaranteed loans. Yes, the banks will sell the homes; sometimes for not much profit.

If she can actually afford it, I guess more power to her.

snip...On the other hand, I wonder if she is setting herself up for bankruptcy again. The taxes, utilities and upkeep on a larger, more expensive house will not be cheap...end snip

It does seem peculiar [odd, wasteful, short-sighted] to buy a four bedroom home for you and your only child when you've just gotten out of precarious financial circumstances.

    Bookmark   January 5, 2014 at 8:05PM
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emma

I don't think mortgage companies give loans based on overtime. I think there must be more to the story than was told.

    Bookmark   January 5, 2014 at 8:53PM
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Acadiafun

"I don't think mortage companies give loans based on overtime."

I think some do. Besides looking at our credit rating, debt ratio, etc., the bank wanted my last two pay stubs for my income level. They did not factor in overtime. So I think it is possible.

My greatest hope for the lady who bought this house is that she can keep it. She seems like a hard worker, and she should get some reward for that hard work. But at that income level I would buy a house at 100K and still worry about having savings to cover the house payment in the event of a job loss or illness. And when raising children I believe they would be happier in a smaller and cheaper house if Mommy was there more often instead of working overtime. But I guess we all have our priorities and I may be a little harsh in that regard.

    Bookmark   January 7, 2014 at 12:30AM
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emma

Over time is here one pay day but not the next. If they looked at your pay stubs did it say so much was overtime.

    Bookmark   January 7, 2014 at 9:36PM
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joyfulguy

Question whether she needs one that big ... unless she figures to take in boarders.

She bought a $350K house ... in an area where many are in the $180K bracket? Questionable wisdom.

Plus ... do you figure that interest rates are likely to stay this low for quite a number of years ... including when renewal time comes for her, supposing that she has a locked-in rate for several years now?

There's a built-in incentive for the government to keep rates low, however, since they owe such huge debts ... and digging the hole deeper, every month.

But how can they find new lenders, unless they offer higher rates, before long?

Especially since they're printing truckloads of money ... the lenders will fear that they'll be paid off in dollars ... that won't buy much.

ole joyful ... who, having lived in 22 locations in 84 years, has never owned a house (but has cheap rent: $535. for two-br. farmhouse, with wreck room).

    Bookmark   January 28, 2014 at 7:28PM
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