QUOTE (EdRenkema @ Jan 30 2008, 03:34 PM) Thanks for the link Joe.
Did you see the young couple Steve interviewed explaining the irrationality of paying on a mortgage for a house that is worth much less than the value of the loan, they figured their only way out was to walk away. In 1990 that was me. I borrowed a $30 K down for a 140K prebuilt townhome, a 6 month closing and timed the market exactly for the crash. Only difference was I didn`t walk, everybody got paid-every bill- on time, ask me how I did that with no job, no UIC, no income period and with a $500 per month negative cash flow?? No one answer, I scrounged work, lived in my father`s basement for free, liquidated RSPs did everything I could to reduce my expenses, but mostly I never gave up. I sold it in 1998 for 100K even.
Why these people are being counselled to walk away is beyond me. Say all you want about the greed of the sales and mortgage people - at some point individuals must understand they are responsible for their own actions. At the time I didn`t know much but I certainly knew that much.
Ed R
Hi Ed. Although it may not sound like it to you, this sounds like a success story!! Despite overwhelming odds, the cards being very much against you and little hope for an eventual success, you pulled it off and no one can take that away!
As for the reason why those people on the 60 minutes segment were misinformed about their finances, I believe it has to do with financial illiteracy which is rampant across Canada and around the world.
In my opinion, if people had purchased the Quickstart course and then went out into any marketplace to purchase properties, I believe their chance of making a serious mistake would be greatly reduced.
Congratulations on following through and being accountable to yourself!