(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.
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.