> Assume they took $300,000 out in equity, yet they were foreclosed > upon when the payment increased by $1800/month. What happened to > the $300,000? If they had used it only to make mortgage payments > they would still have more than half of it left after 3 years and > would have had their entire income to save. > > Think maybe they spent it on "stuff" that they otherwise wouldn't > have bought? I'd guess so, but I don't know.
I agree with your presumption that they "maybe" spent the ~$300K on "stuff"... as undoubtedly millions of other people also did. Now all those Hummers, jetskis, ATVs, et.al are all showing up "forSale", as they struggle with reality once again.
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On Nov 24 12:08 PM Smarty_Pants wrote:
Nov 25 00:54 am
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All Comments by Homer II »The Sun Is Shining on Wall Street [View article]
> Assume they took $300,000 out in equity, yet they were foreclosed
> upon when the payment increased by $1800/month. What happened to
> the $300,000? If they had used it only to make mortgage payments
> they would still have more than half of it left after 3 years and
> would have had their entire income to save.
>
> Think maybe they spent it on "stuff" that they otherwise wouldn't
> have bought? I'd guess so, but I don't know.
I agree with your presumption that they "maybe" spent the ~$300K on "stuff"... as undoubtedly millions of other people also did. Now all those Hummers, jetskis, ATVs, et.al are all showing up "forSale", as they struggle with reality once again.