Was the Mortgage a Mistake? (Homeowner just now figures out they are in a hole)

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/18/AR2007081800089.html?referrer=digg ^ | 8-19-07 | Michael S. Rosenwald

[Bryan24]

This guy and his wife need to visit this website.....

http://www.31337.pl/

For a check on reality.

[Larry Lucido]

Where was their lawyer? The conference table certainly would have been long enough. Oh, that's right. Why spend $300 on a lawyer when you're only spending half a million dollars. Besides, they had "our real estate agent" with them to advise them.

[Larry Lucido]

Let's try this again, with the italians.

Two years ago, my wife and I sat at a long conference table in a mortgage-title office in Bethesda. Sitting next to us: our real estate agent,

Where was their lawyer? The conference table certainly would have been long enough. Oh, that's right. Why spend $300 on a lawyer when you're only spending half a million dollars. Besides, they had "our real estate agent" with them to advise them.

[Bryan24]

Dave Ramsey would eat these people alive.....

[Petronski]

Obviously their RE agent has no soul. Even though present at the table, she did not deign to help her clients with the docs or **gasp** tell them not to proceed without counsel.

[Calpernia]

Let’s not pick on the dog walker. That could be a teen making a few bucks. I support working teens.

::just saying::

[pierstroll]

The article intermingles the use of interest only with adjustable rate. Not always the same thing.

[pierstroll]

There are several reasons why a smart investor would pay interest only. Your question indicates you don’t know any of them.

[CSM]

Do you have a “deep in debt” ping list? If so, please add me.

[Hydroshock]

Sorry I don’t.

[CharacterCounts]

Not necessarily. The writer and his wife make a lot of money and the mortgage doesn’t reset until 2010.

Yes it was a mistake.

While its true the writer may still come out ahead, if interest rates fall and home prices go up before 2010, it was still a mistake because he gambled with this asset.

If he lucks out, it does not make it any less of a mistake.

[caver]

“There are several reasons why a smart investor would pay interest only. Your question indicates you don’t know any of them.”

Yes, that’s right newbie. I don’t know anything but some know it all like you will set me straight.

[pierstroll]

I am a financial planner. It was obvious from your remark that it was an over generalization and you are unaware of the various types of investors who would do exactly as you said no one should and for good reason.

How long do I have to be here to be as smart as you?

[caver]

“It was obvious from your remark that it was an over generalization and you are unaware of the various types of investors who would do exactly as you said no one should and for good reason.”

You are right, I am unaware of the various types of investors. That is why my posting was stated as a question. Instead of replying with some answers as to why a smart investor would pay interest only, your response was to tell me that I didn’t know anything. Thanks for the help.

It’s obvious that you already know more than me, so the length of time here is irrelevant.

[pierstroll]

I get paid to answer that question.

Have a good one!

[caver]

“I get paid to answer that question.”

Ah, I see how this works! You got me there.

[pierstroll]

Actually, I had you on my response to your newbie comment.

Best wishes!

[Mamzelle]

re: If the value of the house is $400,000, you get a tax bill on that amount. )))

This is confusing. How is this considered income?