Quote:
Originally Posted by kane
It is actually worse than that. They bought a house about 6 years ago, but ran up so much credit card debt that they couldn't cover the payments so they ended up declaring bankruptcy. The house they had bought they overpaid greatly for so they were upside down on it and at bankruptcy they gave it back tot he bank.
After that they started renting. They first moved into a small two bedroom place for about 4 months as they got themselves together then they moved into the big place they are in now. The funny thing is they don't have a lease so any day the owner of the house could tell them that they have to move out and they have no money in the bank to pay first/last or deposits on a new place because here they are about 3 years after their bankruptcy and they are up to their eyes in debt again.
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Sounds like some friends of mine.
They both had average jobs and could barely afford an average house. However, as the value of their house nearly doubled in four years they were table to money out on that house. They used this money to finance more stuff - a brand new truck, motorcycle, boat, jeep, and three trikes. They lived high on the hog - They couldn't have cleared more than $80k a year combined, yet they were able to take expensive vacations every few months.
Reality bitch smacked them. He lost his job, and eventually they had to sell everything to keep paying the mortgage. They blew through the cash, and everything they bought they lost a lot of money until they ran out of things to sell. In the end, they lost their house.