Sunday, November 2, 2008

Housecleaner’s Big Home

Once again, the WSJ has found another example of mortgage madness that is hurting us all. Without any irony at all, they introduce us to a couple with a combined $70,000 in income who managed to borrow $637,288 for their home. Ain't America Great!


"Nanci Puerto, a 40-year-old house cleaner in Antioch, ran into such a problem. She refinanced her house for $637,288 from IndyMac in 2006, taking out cash for a down payment on another property. She and her husband, who works in a machine shop, take home a combined $70,000 a year. Each month, she makes the minimum payment on her loan, $2,416. At the same time, she watches the outstanding principal swell since that payment doesn't fully cover the interest costs. Now she owes IndyMac $707,000, on a house that the county tax assessor says is only worth $410,000."

No comments: