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DC Housing Getting Even Deader

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December 10, 2007 – Comments (1)

So much for the "DC is immune to housing problems" thesis. People making $60,000 to $100,000 a year are the most frequent visitors to the credit counselor interviewed. They took on too much debt at crummy rates, and kept pulling out "equity." Now they can't make their payments. Sound familiar?

Welcome to flavor country.

1 Comments – Post Your Own

#1) On December 10, 2007 at 9:43 AM, TMFBent (99.80) wrote:

Gotta LOVE this bit:

The first was at a fixed rate. He later refinanced it into an adjustable loan so he could pull cash out to buy a car and pay off credit cards. The second was a smaller loan to help cover the remaining cost of the house. He now pays $2,439 a month.

Frolov felt confident he could refinance the larger loan again before it adjusted in March. But the value has fallen and he owes more than it's worth, so he can't refinance.

 

"I can't afford to pay even a little bit more each month," said Frolov, 50. "I'm already at my limit. I've lived frugally and the mortgage was my first priority, but my salary cannot keep up with this. No way."

Yeah, you blew money on your credit cards, pulled equity to pay that off plus get a new car and you "lived frugally" hoping you could refi later? Apparently, one of the things this guy didn't buy was a dictionary with a working "F" section.

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