"You've got to ask yourself one question: 'Do I feel lucky?' Well, do ya punk?" Dirty Harry, 1971
Jim and Janet have no children and they still struggle at age 40-something to save and invest enough to secure their financial future. They were presented with the opportunity to buy their first home three years ago by one of Jim's friends who was in the mortgage business.
They were convinced that it was a deal that could not lose;
- no money down
- low monthly payments for two years
- extra cash at closing to pay off some credit card debt and, most of all,
- the assurance by the mortgage seller that the worst that could happen if the payments got too burdensome would be that the house would have appreciated in value and could be sold for a profit.
Jim and Janet were feeling lucky. They took the deal.
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Today the house is worth less than they paid for it
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the payments are unaffordable
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the credit cards are maxed out - again
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selling the house in a neighborhood where over 40% of the homes are already in foreclosure is nearly impossible.
Jim and Janet have an alternative that most don't have. They have no children. Because of that Jim and Janet are both seeking part time work to supplement their income and to avoid foreclosure and probable bankruptcy. Not a pleasant situation.
The Behemoths and their minions have convinced millions of Americans that owning a home at any cost is worthwhile.
BUNK!
Had Jim and Janet adopted the principles and practices of Money for Life, they would not have prematurely bought the house. They would have started a EUREKONOMICS™ Account, paid off their debt and saved money for a down payment. Had they done that, they could today buy a home in a solid neighborhood for a good price, with a low interest conventional mortgage, with payments they could afford now and into the future.
