Saturday, May 16, 2009


My Persoal Credit Crisis - New York Times

This is the part of the mortgage crisis that pisses me off. There are people out there asking for loan modifications because they've found out they can't afford their house payments after the fact. Well I knew I wouldn't be able to afford payments on $600K -before- I signed a mortgage. Is someone going to give me $100K of debt forgiveness?

The author describes his inability to manage his finances on a $120K+ salary. The financial pressure brings husband and wife to the edge of marital disaster, but they recover. And talk about burying the lede... their solution: They haven't made a housing payment in 8 months, but their mortgage service company is so backed up with other people in similar situations that they haven't been contacted for a loan modification or been foreclosed on. That's right, they're living rent free in their house.

What. The. Fuck.

I find this a hilarious conclusion to an article in which the author pats himself on the back for finally coming to terms with his financial situation.

h/t Joe Chiu


  1. The sheer stupidity of some of the author's choices shocked me. But at the same time I'm highly sympathetic to the fact that it's tough-going in today's economy for many families and I've certainly made my share of financial fiascoes.

  2. The key seemed to be the aspirational nature of the purchase. "We know we can't afford this purchase, but we will if the wife gets a job she doesn't have yet." No job in place. No emotional recognition that the family will be on the financial edge once in the house (and modification of spending as a result). No safety net. And worst, no communication about all this -before- entering the purchase.

  3. I think there's a mentality in middle-class America that a people have to own a home to have a "real" family. I see that evident in this story, where they pin all kinds of hopes and aspirations on this one foolish purchase.