[chinaco]

Quote:

Originally Posted by jazz4cash You guys are going waay overboard criticizing these folks and thier lifestyle and making all sorts of assumptions. If only we knew the details of thier situation, perhaps they have made lousy choices which we could legitimately criticize...if we knew. A half-million dollar home is not a big deal in howard county which is right up the road from me. Childcare costs can easily run 50/day/child...they have FOUR kids ranging from 4 to 8 yrs. ...

You could be right on the criticism. But something seems a bit off. If they have to rely on a HELOC to finance their ongoing needs, then maybe a mortgage on a $500k house is too much for them. The lender (i.e., investors) is unwilling to loan on the house and put the loan upside down (that's is the way it appears). If the woman is upset, one would conclude that they have no other liquid resources or they would go for plan B. Something seems off. Do you think they have a 6 month emergency fund they can tap into?

The article is just showing how the spenders out there have been spending the equity growth of their homes and that has ended for now.

This sounds like another "house poor" middle class family living paycheck to paycheck. If their cash flow is interrupted, they are probably in trouble. And it looks like a source of their cashflow just got interrupted.