Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
The saga of Fred & Francine
Old 08-06-2008, 05:58 PM   #1
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,579
The saga of Fred & Francine

(Names changed to protect the guilty.)

This couple has become a family topic of conversation, wondering what they'll do next to screw up their finances, sort of like watching a train heading for a bridge that you know is out. They're friends and neighbors of SIL.

He's a carpenter (apparently a very good one whose work is much sought after) she retired a year ago as a teacher. A MATH teacher! They've been using their home as a piggy bank and now have about $60k equity in a $500k house. Every "I wanna..." is taken care of by credit cards, when they get maxed out they take out another loan, pay off the cc's and repeat the cycle. This is the couple that had the house on the market last year and turned down a $530k offer - asking was $550k - because the closing date would have interfered with their upcoming trip to Hawaii.

They wanna house in SC and had one built. It was finished a year ago and they've been paying interest only on the loan for that. Meanwhile, the SC house that they paid $350k for is now in a neighborhood with houses selling for $250k. So instead of being $400k in the hole like everyone thought, they're $750k in the hole.

It just kind of takes my breath away.
__________________

__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-06-2008, 06:17 PM   #2
Full time employment: Posting here.
cantlogin's Avatar
 
Join Date: Sep 2006
Location: Pocono Mtns.
Posts: 884
Ya know, maybe we’re looking at this all wrong. Maybe the winner is the one who has spent the most of someone else’s money before he dies. I’m going to think about this a little bit more…
__________________

__________________
cantlogin is offline   Reply With Quote
Old 08-06-2008, 06:51 PM   #3
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,457
Walt, these sorts of people provide endless entertaining conversations around our house. It is amazing how the ones we know don't even seem all that worried about their giant debt holes and lack of savings.
Where in SC is the house, nosey parker wants to know?
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 08-06-2008, 07:06 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,426
I saw a clip on the news about banks closing HELOCs without warning, due to the loan amount being too close to the owner's equity. The man that they interviewed said that it was a real surprise for him, he was on vacation and was at the McDonalds drive thru when his HELOC charge card was denied. He didn't know that he had received a letter about his HELOC being closed because he was still on vacation.

And I'm thinking what the heck is he doing using his HELOC charge card at McDonalds!! Makes you wonder how people's brains work.
__________________
Sue J is online now   Reply With Quote
Old 08-06-2008, 11:36 PM   #5
Thinks s/he gets paid by the post
Goonie's Avatar
 
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,198
Quote:
Originally Posted by Sue J View Post
Makes you wonder how people's brains work.
Sometimes I don't wonder "how"...I wonder "IF" their brains work....or if they even have a brain to start with. I've got an old friend that I used to wonder "if" his brain worked......but now I just wonder if he even has one.
__________________
Goonie is offline   Reply With Quote
Old 08-07-2008, 08:14 AM   #6
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,579
Quote:
Originally Posted by Sarah in SC View Post
Where in SC is the house, nosey parker wants to know?
Murrell's Inlet. They just had to have one there because SIL & her hubby bought a double-wide two blocks from the beach as a vacation place (they own the lot it's on) so Fred & Francine had to do them one better and have a stick-built house.

Oh, and the MD house is now on the market $498k. We have bets on what it'll actually sell for because crunch time is coming soon.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 08-07-2008, 08:42 AM   #7
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
They're not really in the hole for $750K if you count the value of the houses against what they owe against them (i.e., calculating net worth to include the property) and only the MD house is for sale (they're not trying to get out of the SC house anyway, are they? So it doesn't matter at this point what it's devalued to if they're planning to keep it). And I don't know what MD teachers' pensions are but in Illinois they are very healthy.

Just pointing that out so you can be entertained by them without feeling guilty about it

I wanna house in SC too!!!!
__________________
Bestwifeever is offline   Reply With Quote
Old 08-07-2008, 12:24 PM   #8
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,457
Bestwifeever, not in Murrells Inlet you don't! Did you hear Walt say double-wide? There are a few nice houses there, but it is kinda a backwater. But if you fish, it is a great place.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 08-07-2008, 12:47 PM   #9
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
it must be wonderful to be able to live happily like that, to be able to give up a sale for a trip. i'm pretty sure i'd cut the trip short for the sale. i've never been in debt, i have plenty of money and still, in this downturn, i'm freaking out.

if i was $750k in debt i wouldn't have to wait for alzheimer's to give me a reason to shoot myself. i could never live like that. it wouldn't even get that far. just before i went into debt i'd take that last bit of cash and buy myself a gun.

ok, i stole this i think from the simpsons but i think it is so funny...

goodbye cruller world



(actually it was a picture on the side of a donut truck, damn utube for not having it on video yet)
__________________

__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Continuing Ankle Saga........ FinanceDude Health and Early Retirement 3 05-30-2008 07:21 PM
Fred is creepimg me out brewer12345 Other topics 8 06-12-2006 05:56 PM
Fred, the Anti-Moron haha Other topics 29 05-18-2006 05:56 PM
The “Vinegar Boy” Saga Nords Other topics 6 08-04-2005 10:57 PM
Fred on Everything Columns Eagle43 Other topics 3 01-29-2005 06:35 PM

 

 
All times are GMT -6. The time now is 12:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.