patrick.net

I'm sick of competing with idiots. The fact that tax dollars will ultimately go to support people like this just adds insult to injury.

I think part of the problem with the lenders is that they look at gross income, not take home pay. Assuming that she takes home 2/3 of her gross pay per month after taxes, her gross monthly pay would be $3705, and 1328/3705 = 35.8%; on the upper end of what banks limits on payment to income ratios.

"The monthly payments on her debt amount to $1328. Her income is $2470, leaving her with just $285 a week to live on. She's paying 54% of her income to make the mortgage payments. She earns that income by holding down one full time and two part time jobs. Obviously, this woman has a strong work ethic. But it also means her income is precarious. With unemployment still rising, she obviously should be worried about losing one of her three jobs. A loss of one of them would likely leave her unable to make the debt payments."

Fuzzy math.

My concern isn't so much with the home price $183K is alot... But not a McMansion... My concern is more along the lines of the "attitude" of the 20 & 21 year-old homebuyers... They both firmly believe a house is a magical investment that should and will become a wealth machine for them. They also talk about buying more houses as investments... Thankfully i don't believe FHA would be able to help them with buying a 2nd home...

That was painful to read. Some day she's going to wake up and realize that she doesn't want to work some 80hrs/wk. I guess she could bring in room mates. No time to date to find that mate that could help with the payment.

I'd like to talk to the lender and ask WTF?

What sane mate would want to date her? :)

"Tejada sees her house as an investment rather than a home. And she is planning on buying more homes, despite the fact that her income is already strained by her debt"

This is the problem, when would people learn? Geez.

I’m sick of competing with idiots. The fact that tax dollars will ultimately go to support people like this just adds insult to injury. You may be right, however, we must applaud the amount of effort it takes to build wealth from poverty. I think going to school is one option, but becoming an entreprenuer is another. In this instance, these kids are being taught to invest in depressed properties with equity at hand. I also dislike the fact that these 2 went out, bought a house with a inflated price 183K that will be worth 100k next year but for different reasons. I simply think the American Consumer needs to let the markets reset before buying. 3 weeks ago I started a house hunt but quickly realized after 2 days that the market was till overinflated. I did my research which led me to Patrick.net and now I am saving and paying down debts (School Loans, Vehicle Loans) that were accumulated during my 20's. What do you propose is the ideal situation would be for a person to buy? What have you against FHA extending opportunity to the poor?

I think part of the problem with the lenders is that they look at gross income, not take home pay. Assuming that she takes home 2/3 of her gross pay per month after taxes, her gross monthly pay would be $3705, and 1328/3705 = 35.8%; on the upper end of what banks limits on payment to income ratios. I do not believe they are wasting their life away on this 1 part of the American Dream (home ownership). I believe the other parts will come along after they get older. We dont say this to Joe the Plumbers who forego their education in favor of being a common skilled laborer. Simply put, they have embraced the entreprenurial spirit and it is up to the economy to put a break on all the madness, now I do agree with FHA footing the bill should they foreclose. I am not familiar with FHA and its negative impacts, but believe we must extend loans to the poor as they could not save 30K like you or I. The poor have income levels that barely meet their needs, now should someone want to work 3 jobs to achieve their dreams I see no downside to hard work ethic....and yes, I do see risk. Which is why we may need to only extend FHA to lower priced homes (120K or below) where by the mortgages would be affordable for even those of us working common jobs at $6.75/hour ...hopefully this would prevent someone from overextending as these 2 have done. Your thoughts?