Quote:
Originally Posted by Joeaksa
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.
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.
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I don't feel sorry for your friend. His problems have absolutely NOTHING to due with inflation, $150 oil, the housing downturn or anything other than his own irresponsibility.
There is no reason somebody making 100K a year can't make payments on a 400K home..even with a maturing ARM. He needs to sell his bike, his interest in the 2nd home, sell the interest in the plane and probably put a few other capital items on ebay. With the capital raised he could pay off his credit cards and live a comfortable life.