Quote:
Originally Posted by Joeaksa
Sorry guys but some of us are doing very well thank you! Except for my house payment, I owe no one anything, period and just this last week my house has stopped its free fall in value and I expect it to rebound by late August and start going up again in value.
On the other hand there are people like my current copilot. He is 40-ish years old, single but living with someone full time. Worked at his current job for almost 4 years now.
We had a discussion about things today and he is not happy here as he feels that he is getting cheated. He wants to be in the left seat but has no-where near the experience needed to make the move on an aircraft like this yet. I am helping him as I can, but he is not ready to fly every other leg from the right seat, not to mention move over to taking over the left seat. He is making (am guessing here) around $100k a year doing this job. Thats the good news.
Bad news is that he owns a house in SoCal that he has been in for around 2 years. He paid about $450k for it and its now down to $350k in value. He owed over $400k for the house at the time of purchase as he has an ARM loan (2 years to go on it) and the bank has been offering him "less than interest only" payments on the house, which he has done every month. He owed $405k on it when he bought the house and now its up to $418k this month. I asked him why he did not want to convert it to a regular 30 year loan and he said that he could not afford to. Why I asked?
Well, he has a payment on his brand new pick-up, his brand new motorcycle payment, a house payment on a place he splits with another family member back where they grew up ($800 a month) so in the end he has $4000 in payments to make every month when almost everything is added in the mix. If that is not enough, he has just made an agreement to buy an airplane for $30k or so.
Notice that I said "almost everything" in the above statement? My jaw dropped when he then went on to tell me that he had around $100,000 owed to credit cards as well!
Guys, I have no idea how this gent is going to get and keep his head above water. His girlfriend works but she makes minimal wages as a sect so she cannot help a lot. This has just blown me away how someone can get this far under and still does not see that they are in trouble, real trouble financially. He has no savings what so ever and if things start getting really difficult in the economy he is sunk.
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Your friend is toast. He will never, ever qualify for a loan to replace the one he has now. Going to fixed will just mean he will pay what he's supposed to, which admittedly he can't afford.
Sorry but he has no outs- unless he talks BIll Gates into paying cash for his home.
rjp