Julio and his wife are friends of mine.

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   tobey100posted 13 years ago

   They live about 8 miles away in one of the new subdivisions springing up around greater Nashville.  At least they did live there.  They lost their home due to foreclosure.  Julio has 4 children.  His wife doesn't work.  He works at our little local grocery store.  Not as a manager, he stocks shelves.  He's a great guy, great family man.  He managed to purchase a $310,000 home and hang onto it for almost 3 years.  I trully feel for Julio, but when he got a mortgage and moved in I couldn't help thinking, what's wrong with this picture?  Should we bail him out?  Didn't he realize he couldn't pay for the house when he got it?  Whose fault is it?

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      AEvansposted 13 years agoin reply to this

      What is wrong with the picture is that the banks robbed Julio of his American dream they knew he would eventually lose it, they would destroy his credit and would be able to make more money from it once it was foreclosed by auctioning or re-selling it back to A. A first time buyer for far less or B. An investor which are the same people who assisted our Country with destroying it. Julio is better off renting for now, getting his finances together and purchasing a couple of years from now.

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      rebekahELLEposted 13 years agoin reply to this

      a home for that amount was clearly out of Julio's reach with what is shown here as his income. a greedy mortgage lender used him and many others to pad their bank accounts. they manipulate the figures and viola, Julio is a homeowner. very sad, as the loan probably was not explained to him clearly enough before he excitedly signed on the line. I'm sure at some point Julio had a 'nagging' feeling that he could not afford it but signed anyway. if it sounds too good to be true, it almost always is.
      home ownership is a huge commitment and responsibility, the biggest anyone will make financially. people need to do their homework.

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   Hauntyposted 13 years ago

   When an average couple gets together here in Hungary, they both live with their parents. If they both work for about 3-5 years they can get a mortgage to buy a $42,000 flat, which they have to pay back over the next 15-25 years. That's the dream scenario.
   The reality is, none of them gets a job, they probably get to rent a room from the parents. When the parents die they inherit a home from them, their first one. That's when they're about 50-60 years old. But I know we are still better off than people in many other countries.
   I'm sorry about Julio's story though.

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      tobey100posted 13 years agoin reply to this

      Great perspective from the outside.  Guess it proves it's just bad all over.

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   Flightkeeperposted 13 years ago

   Well Julio was able to live in his house for four years.  Now he can start fresh and start earning and saving towards a home he can really afford to keep.

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   WriteAngledposted 13 years ago

   That sounds like a really expensive house. My impression was that property is cheaper in the US than in the UK. My house is worth half of Julio's. It's quite humble and in an area with some of the lowest property prices in the UK. However, it cost what I could afford. I could have raised a mortgage for more, but didn't see the point of mortgaging away my whole life and living in constant fear of losing my home.

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      Hauntyposted 13 years agoin reply to this

      Yeah, but that's because you are smart.

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         WriteAngledposted 13 years agoin reply to this

         Not smart,just poor

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            Hauntyposted 13 years agoin reply to this

            Some people are poor and they don't know it. So those who know it, well... we can't say they are smart. In fact, what is smartness? You can't say somebody is smart without a point of reference. But hey, since I'm an average dude, I just call you smart. You have no chance to really object.

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      tobey100posted 13 years agoin reply to this

      Property's not necessarily cheaper though it is out here in the sticks where I live.  Julio would tell you himself he shouldn't have made the deal but the lender made it so easy he couldn't resist.  Who wouldn't want their own home for their family.  By the way, Julio's not an immigrant.  He was born and raised here as were his parents.

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   Mishaposted 13 years ago

   Not all people are meant to own a house. In fact most people are better off renting probably.

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   WriteAngledposted 13 years ago

   Well, I have a roof over my head and will manage to pay off the mortgage over the next nine years. I am a child of Polish immigrants who ended up in the UK after WW2 and never managed to get a place of their own. My childhood was spent in insecurity; we were thrown out of one rented place when I was 12. At the very least, my daughters had a place of our own where they could shout, jump around and wreak havoc without a landlord complaining. They are now in charge of their own lives. I have my little place where my four cats can be safe without another landlord complaining. I can look out of the back door at the mountains sheltering my valley. That is all I need. Even if one day it becomes difficult to pay for heating etc, I have my own home and no one can tell me to move away. That is all that matters.

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      Hauntyposted 13 years agoin reply to this

      That's all that matters.

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   Colebabieposted 13 years ago

   Well I know that I would like to own a house someday. Paying $1000/month rent forever just doesn't make any sense. I could get a mortgage at $700/month. Put down a good downpayment and just pay it off faster.

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      Mishaposted 13 years agoin reply to this

      I would hold off for a couple of years more, if I were you. We are likely to see a serious drop in prices in the coming year.

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         A Texanposted 13 years agoin reply to this

         Good advice.

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            Colebabieposted 13 years agoin reply to this

            If I get into PA school I will likely be looking for a house later this year or next. If not, then then it will be a few more years. The home prices in Florida are quite low. There are foreclosures everywhere (they have their own problems I know). But I am playing wait and see right now.
            
            Thank you for the advice.

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      Ron Montgomeryposted 13 years agoin reply to this

      There are many people, myself included, who think renting is actually the better option financially - especially now.
      
      It is a myth that rent is money thrown away with no return.  Rent usually includes services such as maintenance that have to be paid for out of pocket if you are buying.

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         Colebabieposted 13 years agoin reply to this

         Agreed that maintenance and amenities are a great issue. However, depending on where you live, rent can be ridiculous (i.e. South Florida )

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   jerrylposted 13 years ago

   Figures don't lie, Liars figure!
   
   I would like to know just how a man like Julio, working at a local grocery store, receiving wages of a stocking clerk, was able to be approved for a $310,000.00 mortgage in the first place?  Someone had to use some fancy figuring to make that deal happen!
   
   Under our debt monetary system, this should not be possible!  Maybe I am missing something.  Did he have a mortgage?  Was he renting with option to buy?  Did he have a contract for deed arrangement?
   
   Something in this story just doesn't click!  Who would approve a mortgage like this, or even get into any other deal with a person, obviously not able to keep up with the expenses of owning a home in this price range?
   
   The facts are not all there.
   
   Jerryl

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   tobey100posted 13 years ago

   Thanks is exactly what I think.  He was used.

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    prettydarkhorseposted 13 years ago

    I own two houses in the Philippines I am renting it out, but I am renting here in the Dallas area, need to buy a house of my own becuase I like gardening too, Julios case is a lesson.

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