Posted on 01/31/2015 6:50:08 AM PST by dynachrome
When they moved into the house in November 2005, Kofi was earning $82,740 as an IT consultant for a government contractor, and Comfort, then 43, was making $30,000 as an administrative assistant. But in the overheated mortgage market of the time, they said everyone told them that they could buy a $600,000 house.
They made a $60,000 down payment and all their mortgage payments for more than 2½ years — through September 2008. But the house was financed with subprime loans, which reset to higher rates after short time periods, creating what are known as “shock payments.” The Boatengs said they could not make their new higher payment, and, in the middle of the 2008 mortgage crisis, they could not refinance.
(Excerpt) Read more at washingtonpost.com ...
They should have stopped in May 2000. They could have first paid off the cars then worked away at the mortgage.
It’s their own stupidity. Why did they need to move? Why did they need a NEW Altima? They wanted more than they could afford. Stupid is as stupid does.
Connelly, the best.
Apparently he used to be a crime beat reporter, and it shows.
Waaaay more realistic than for instance James Patterson.
This guy was a double two-fer. Immigrant, minority married to an immigrant minority, with newly credential MIL, to boot.
The banks could NOT refuse him.
We never have a crystal ball, so that is a meaningless wish.
In times past, immigrants to this country who came here legally were required to formally swear they could not allow themselves (their sponsor, if any had to also swear)to become a public burden. It seems to me they violated this now-defunct requirement.
Sweeeeeet. Living the American dream. /s
All of those rules are out the window; globalization has so destroyed our standard of living that young people today know they can’t count on a steady salary for the next three months, never mind thirty years.
You’ll understand when you see how many young people are renting cars today (via leases); they know they can’t commit to three years of car payments, so they certainly won’t commit to even fifteen years of mortgage payments.
Americans have been financially screwed by their government elected to represent them, and the government got away with it.
Only the Washington Post could think that this is surprising or a problem that the market can’t resolve.
Nothing at all should be done about this.
Oldplayer
No, dear, it doesn't.
If there was a valid condition on his residency... then yes he ought to be deported.
It ought to be something like this sort of formal pledge, however, not that we just don’t like him becoming a bum because we prefer to home grow our bums :-)
” A conservative rule is a mortgage of no more than twice your annual income.”
That depends greatly on the interest rate. When interest rates where high people rarely borrowed even twice their income. When low, 4 times.
The real rule is not to go above 25% of monthly income.
“They did not tell the bank that Kofi lost his job.”
I’m not sure, but doesn’t a buyer sign a document at closing stating their financial situation has not substantially changed since loan application?
If the buyers signed such a form, wouldn’t that be fraud?
If it was ONLY market... in which case whatever lender thinks it is good policy to be bummed should be allowed to go right ahead till the end of time if they desire... but how many gummit fingers are in this grotesquely warped pie?
If stupid people are given all the things that smart people earn, what is the advantage of being smart?
If careless people are given all the things that careful people never need, what is the advantage of being careful?
If liberal people barrow the money that conservative people save, what is the advantage of being conservative?
I say let dumb, careless liberals sink.
yep...we DO grow our own. In the 70s I was required to formally swear by signature I would not allow my wife to become a burden to the public. She also HAD to learn to speak and write English fluently. She was also extensively tested.
There probably isn’t a requirement like that now, but there damned well should be. You can thank Democrats and GOPe RINOs for that.
Yet, by any stretch of the imagination, this pair of Grifters the WAPO is hyping should go back to Ghana - I don’t care what happens to them here.
“They have not made a mortgage payment in more than six years.”
You can bet your bottom dollar these folks have had the conversation... more than once... about King Obama coming to their rescue and wiping out their mortgage debt. “We just need to hang in there long enough, honey.”
That, plus many of us are the wrong color....
Oh, I don’t think they are “typical” at all; they are a worst-case scenario of what happens when poor planning meets outright naivety. Here in NJ banks were taking back the houses until a glut had them working out arrangements with the owners in default (not to keep the homes, but to at least stay in them until the bank found a buyer).
I’ve seen mortgage horror stories, but can’t relate to anything in the $600k range; people buying that kind of home wouldn’t give me the time of day.
Or maybe even deliberate gaming.
The new lender would rather work out lowering the payment because they’re getting something.
If they foreclosed, odds are good it would be a loss.
I mean this home is underwater and foreclosure costs the lender more money than they would make selling it again on the market.
That’s why it hasn’t been foreclosed in six years. Their lawyers told them, look you wanna go ahead - you won’t recoup this investment.
And the Boatengs can file for bankruptcy and walk away from it. The mortgage company gets left holding the real estate equivalent of junk bonds.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.