2 votes

my NeoCon friend is taking an FHA loan; what are YOUR predictions?

He is saying "I am backed by the full faith and credit of the U.S Government"...he knows I am an "End the Fed" guy, and telling him he is still RENTING is like talking to a brick wall.

It's a house listed at $109k in western Cook County(Chicagoland)....he is gonna put $5000 down(all he has in savings at 43 years old with a $31k/year municipality job(non-union parks department) that he has only had for one year; and he is going to make an offer of $104,400. Property taxes are currently $4800/year. He has no girlfriend, never married, no kids.

I predict his payment for mortgage and taxes will be 50% of his take home pay. He will have no money for emergencies(he will use credit cards for water heater or furnace if it breaks) after utilities, I can't imagine his property taxes will not increase with loads of peoplepeople still "walking away" in Cook County and Rahm Emmanuel Mayor forever...and who would trust the government not to change his loan terms middle of the game?

His health insurance premiums will double, or he will be forced unto Obamacare by his employer I suspect...his hours will be cut too probably.

I am renting myself, and I have a union janitorial position; I am being told by him to file bankruptcy and get in before hyper inflation kicks in and interest rates skyrocket like they did 30 years ago...I told him " you may like your new lifestyle, but you won't own/control bunk once you sign on that dotted line"

I don't trust "things are good"...I am just a realist(I think) about what is coming for our slave existence....am I missing anything? Is this the same bait as the "red line" districts back in the 70's where the government was forcing banks to give loans to unqualified buyers?

I can't change his mind, and he is "sick of" hearing my "Ron Paul End the Fed crap".

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they accepted his offer....

...a few thousand less....now he's feeling "bound", but "proud"....if the system wasn't a sham of FRN's, low wages as compared to the obvious inflation that has happened in the past decade,, and even if I could see a situation where "good people" did the "right thing"(20% down, loan through a BANK and didn't get screwed when the housing bubble burst); then perhaps I'd pat him on the back saying "maybe we're coming out of it".....but, I only see bondage and uncertainty for him, not "homeownership".

This ship is still sinking, and the working poor are going to pay an even higher price for this "American Dream", or, "piece of mind"....we are forbidden from owning/defending property; we bought it with THEIR money and THEIR credit, so THEY own it.

As I am teaching my kids now... http://www.youtube.com/watch?v=dZ1op69LDZI
Because their Dad fell for the conditioning!!!

I see

another statistic in the makings...

When Fascism goes to sleep, it checks under the bed for Ron Paul!

Sounds like a bad financial

Sounds like a bad financial decision. But that just has to do with his level of savings / income level, nothing to do with the government's 'full faith in credit'

Well, no doubt there is

Well, no doubt there is significant potential for things to become very difficult for your friend. Sometimes people just need to learn on their own, though.

31k doesn't go very far... after taxes you're probably right that he will end up spending 50% of his take home pay.

...

A monthly payment is a

A monthly payment is a monthly payment. While renting, you have no investment. And you also have to deal with noisy neighbors, snoring beneath you, and other people who like to throw their trash in the hallway.

I recently purchased a new home at a super low interest rate, and I am happier than a clam. It's so quiet...so peaceful. I can sleep in until 11am on a Sunday without a sound. I LOVE my house, and wouldn't take double for what I paid for it.

There's nothing like being a homeowner. I love going to the Home Depot on the weekends! I love my neighbors, as oppossed to the people who liked to listen to gangsta rap in their cars outside the apartment I used to rent for $100 less than what I pay now per month for my own home with twice the living space, and a much nicer environment.

Never be afraid to ask simple questions.

scawarren's picture

OMG $4800 property tax on a

OMG $4800 property tax on a $109,000 house?! Jeez no wonder the family I had there moved (minus one aunt). That is outrageous; we only pay $756.00 for house and property appraised at $169,000.

It is easier to fool people than to convince them that they have been fooled. – Mark Twain

What state are you in?

What state are you in?

...

Cyril's picture

Aw... SO CUTE ... small property tax figures. Adorable.

Aw... SO CUTE ... small property tax figures. Adorable.

Property tax has known DOUBLE DIGIT PERCENTAGES rise between 2011 and 2012 ... in France :

"Les taxes foncières explosent en France" (Property taxes EXPLODE in France)

http://www.latribune.fr/actualites/economie/20121010trib0007...

Did I read $4,800/year ONLY, near Chicago ?

To compare with :

"Tax reductions for those who are retired

With the Taxe Fonciere, a reduction may be possible for those French residents over the age of 75, if on low income (limits in 2010 are currently 9,876 EUROS for one person and 15,150 EUROS for a couple). Reductions may also be made for those over 65 years old, depending on their resources. With Taxe d'Habitation, total exemption from the tax may be given to those over 60 years old, as long as they would not be eligible for the French "Wealth Tax" and their income is not above the limits mentioned above."

Yup. NO kidding.

9,876 EUROS ~ $13,000

15,150 EUROS ~ $20,000

http://www.frenchpropertylinks.com/essential/taxe-fonciere.html

P.S.
Note though, to better understand above figures :

it's difficult to find ANY single family home below 150,000 EUROS (~ $200,000) ANYWHERE in France.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Best thing California ever

Best thing California ever did: http://en.wikipedia.org/wiki/California_Proposition_13_(1978)

Section 1. (a) The maximum

Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

Cyril's picture

Thanks for the pointer. Could be worse, granted.

Thanks for the pointer. Could be worse, granted.

However, don't miss :

http://en.wikipedia.org/wiki/California_Proposition_13_(1978)#Amendments_to_Prop_13

Rent-seeking, wealth sucking bureaucrats always find their way, thanks to the gullible. Let's keep being wary of both.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

The first two amendments

The first two amendments benefit the taxpayer. The third does not.

Cyril's picture

Yes, the 39. That's what I forgot to mention.

Yes, the 39. That's what I forgot to mention.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

I don't think they will

I don't think they will approve his loan. All loan companies require that your mortgage is only 30% of your total income. unless it is still operating on scam banking. Which is what I thought they got rid of in the first housing scandal.

"and the truth shall make you free"
John 8:32

The system requires scam banking

Unless new debt is forever being issued the system implodes upon itself.

It's a ponzi scheme, just on a massive scale, it is inherently scamful.

So yes, debt is most definitely still being put upon people that cannot afford it, and if not individually, then on a national scale, all across the western world.

Cyril's picture

BUMP for others' input.

BUMP for others' input.

To help one person at a time to save themselves.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Your friend needs ONLY 15 minutes of his time to save himself

This is your friend's "pseudo-money". He is free to waste it.

But your friend is also free to make a difference for himself, for his own future. It is NOT too late. Your friend needs ONLY 15 minutes of his time to wake up and decide to save the fruits of his sweat in real money, for a change.

Yes, just 15 minutes to watch the following, and ponder about the headlines I've put in bold :

The People Standing Awareness (6 mins, 30 secs) :

http://www.youtube.com/watch?v=yfHWChrsYfk

...

REAL money : what's the story all about, anyway, with us, quiet, inconspicuous gold and silver stackers ? (3 mins, 30 secs) :

http://www.youtube.com/watch?v=F27fGMXg3o0

...

The nature of the PERFECT STORM of overwhelming DEBT coming, forming above the heads of the people who DON'T and maybe WON'T have real money (4 mins, 30 secs) :

http://www.youtube.com/watch?v=_CIasA0DM-A

...

Our future where just 10 ounces of silver WILL make a difference to feed oneself and one's family, under a roof, and for weeks, if not months, is around the corner - and will eventually come to us all at FULL SPEED when most people ... WILL LEAST EXPECT IT.

I am dead serious.

I have a wife AND kids.

We CANNOT afford living only in the present or a two-months future perspective, any longer.

We like it or not, we just CANNOT.

Peace.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

yeah,

...gimme 4 walls, "joe six pack", and I buy an ounce or two of silver a month, ready to move at a moment's notice...that's where I'm going....

Cyril's picture

Maybe I'm wrong, but you sound bitter.

Maybe I'm wrong, but you sound bitter.

Well, we all are, matter of fact. Who wouldn't be, honestly ? So much deception, misery, wars, and waste for almost a century now. I heard that before, though :

"sorry, but I don't make as much money as you do to put into X (greater than 1 or 2) ounces a month, so, what's the point ?"

My answer is along these lines :

"It doesn't really matter how much you can afford. The point is to preserve your wealth into real money. You don't have to hurt yourself, just put aside what you can reasonably afford by tightening your belt a bit. When the fiat currency completely collapses and the welfare checks - or coupons, stamps, whatnot - stop coming - or are drastically reduced - for others who depend exclusively on those, YOU will STILL have YOUR earned (more or less) wealth around to help you out."

It's not about getting rich later (not for most of us, anyway). It's about to keep safe our REAL saved wealth to take a break, pause to reflect, to figure one's way out, work things out, when it has got REALLY HARSH for all the unprepared to even get food that they WON'T choose... as they'll be, poor people, LEGIONS.

Maybe I'm old fashioned, but no matter what the central planners and banksters want us to believe otherwise, I don't quite see the odds for gold and silver - considered thus far for MILLENIUMS as the very few forms of REAL money - supposedly all of a sudden rebranded as superfluous "traditions" (to borrow from Mr. Ben Genius Bernanke's words)... to be much greater than zero.

That's the best message I can think of you can try to convey to your friend, anyway. At least, YOU are aware of the Grand Enslaving SCAM - he still has some road to go, ahead of himself.

Peace.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius