In September I'll be at my present job 18 years, 20 in the industry. Hatt's right we don't have the whole story and I'll just bet there was a boat load of credit card debt. In any event that couple needs an abacus.

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"It's normal for these things to empty your wallet and break your heart in the process."
2012 SLK 350
1987 420 SEL

Glad were in agreement, like Kerry said good folks are losing their jobs and its taking a long time to find other work. I have done a 180 regarding debt in the last couple years, money was growing on tree's and everything was good but now the axe has swung and I'm at ground zero of trying to help people out and people are in hell's bell's with nowhere to go....except coincidentally Dallas in the case I described.

If anything there is stupidity on the perps part, to qualify for the FHA they must have conservitive debt ratios and decent credit, they may have piled on debt after they bought the home but they should have done something about the unsecured debt. In most cases they can buy a new home 2-3 years out of bankruptcy and foreclosure but the part they don't know is the owe uncle sam the insured part of the mortgage.....forever if I am not mistaken.

You are an exception.
But then… We always knew you were exceptional.

BTW - Keep us posted on the flying.

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1980 300D - Veggie Burner !

Well thats a different type of forclosure. Sudden death an illness are very sad stories to. I know of one where the husband in his 50's died suddenly, and they lost their dream house. In another their kid got sick, and insurance only covered so much. They had to choose between heating oil and eating.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Yep, thats why my engineer friend who is my age is currantly buying real estate. Its not will you get laid off, its when.

I'd say 6 months emergancy fund plus other streams of income.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Oh that drives me up the wall! My cousin is on the new car kick, she is all about monthly payments. I was like insted of messing around with this BS why not just buy a new Civic and keep it for 10 years? She was like oh no I need a reliable new car.

Now she wants to buy a house, but can't really afford much because of the $500 a month Saab payment.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

I think part of the cause of the foreclosure problem is TV shows like 'This Old House'. These shows display home renovations that cost tens or hundreds of thousands of dollars to houses which are functional to begin with. People begin to think it's 'normal' to spend this kind of money on the renovation of a functional home. To get the money, people cash in on the equity in their homes, putting them in a dangerous situation should financial problems arise.
Prior to these kinds of shows, I think people would have been far more likely to accept an old but functional home as adequate and not get themselves into debt in order to have a newly renovated home.
It also causes difficulty when trying to sell older but functional homes, like the people in question in this thread. They feel pressure to 'update' the house in order to sell it, putting themselves at risk. Buyers are less likely to be looking for a older functional home and more likely to purchase the newest updated home. Good for Home Depot, Lowes, and the credit card and mortgage industries but not necessarily very good for the individual homeowner. It takes more self-discipline now to accept that older functional home.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

It's definitely different when you see it first hand. You're privy to a lot more financial details than most of us.

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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)