Woman in Chains Fights Eviction | NBC San Diego: "June Reyno, her husband and their five dogs have lived in their Mira Mesa home for nearly 20 years. Now, they are being evicted, but June Reyno is not having it.
She's defying the eviction by chaining herself to her home.
The San Diego Sheriff's Department is expected to come out to the Reyno's home sometime Monday or Tuesday. Reyno said she will remain chained to her home until 'the California State Legislature elected officials respond to these massive evictions and foreclosures that are going on in our county.'"
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These folks have an ARM and the payments are now...drum roll...$5800 per month. Two points. First, how can you live in a house for 20 years and be paying $5800 per month? How could you not be in a nice 5% 30 year loan by now instead of a nasty ARM? Second, to afford payments like that you would need an income of at least $300,000 per year. Something here doesn't make sense.
4 comments:
This story goes to show it's now caveat emptor when it comes to mortgages. Used to be the reverse (caveat vendor) when the terms and conditions were tighter -- 20% down and underwriting to ensure the borrower could service the loan.
Not to mention the question of how a 20yo house is worth so much that only a $300k wage earner can afford it. (I haven't looked at the house, and it is California, so maybe it is a very very expensive house, but it seems odd to me.)
If we can believe the WaPo anon sources, the federal government will bail this woman out pretty soon: http://www.washingtonpost.com/wp-dyn/content/article/2008/10/29/AR2008102902605.html?sub=AR&sid=ST2008103000150&s_pos=
Stories like this are driving the idea of bailing out mortgagers who are being seen as victims of predatory lenders offering mortgages with toxic terms. Since it was caveat vendor for so long, no one expected the market dymamics to suddenly shift to caveat emptor.
I was one of June's business partners a short while back. We were "ripped-off" by "ZP" (I will not use this person's full name for legal reasons). June is guilty of two things: 1) trusting ZP; 2) too much positive thinking. Get the whole story right before you "throw stones" at her!
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