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fleur-de-lisa

(14,628 posts)
Mon Oct 8, 2018, 02:47 PM Oct 2018

How Did the Kavanaughs Afford Their $1,225,000 Home?

https://medium.com/@gregolear/money-line-parlay-how-did-the-kavanaughs-afford-their-1-225-000-home-b53aaaf31b04

snip . . .

Kavanaugh was a federal employee, drawing an annual salary of $62,026. (He’d been nominated for the federal judgeship but was still waiting to be confirmed.) Ashley Kavanaugh worked at the George W. Bush Presidential Library Foundation and the Community Foundation for National Capital Region, neither high-salaried positions. Her retirement plan was worth $1,000. There was no other income, and no gifts reported. As for investments, as Kavanaugh testified last month: “Since our marriage in 2004, we have not owned stocks, bonds, mutual funds, or other similar financial investments outside of our retirement accounts.”

It is true that mortgage brokers in the go-go early 2000s were notoriously laissez-faire when it came to loan approval. I recall being “pre-approved” for a loan amount of up to $425,000 back in 2003, when I was making about $40,000 a year, and I recognized, if the bank did not, that there was no earthly way I could have afforded that much house. High on the fumes of the real estate bubble, lending institutions were plainly cool with the risk of foreclosing on properties.

Even so, the Kavanaugh loan is a head-scratcher. At four percent interest, the mortgage payments would have been $4,600 a month, or $55,200 a year. In other words, the mortgage payments alone were more than what Brett Kavanaugh took home in 2006 after taxes. And that doesn’t include property taxes, homeowners insurance, or maintenance costs — the last of which, as he painstakingly explained in his Senate written testimony, and as I previously reported, cost a pretty penny:

Not only did the Kavanaughs buy a home well beyond what they could conceivably afford, but they bought an older home that was apparently a money pit. (That it needed so much work should have been made clear during the home inspection, required before lenders issue mortgages.) Why would any bank with a functional abacus approve such a terrible loan? And why would Brett and Ashley Kavanaugh agree to it?
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How Did the Kavanaughs Afford Their $1,225,000 Home? (Original Post) fleur-de-lisa Oct 2018 OP
??? Where did the money come from ??? Achilleaze Oct 2018 #1
I would not be surprised if he wasn't bankrolled by wealty Republicans. Probably bought. olegramps Oct 2018 #25
Wingnut Welfare is my guess. n/t QC Oct 2018 #2
Wingnut Welfare mountain grammy Oct 2018 #24
Russia. Iliyah Oct 2018 #3
I was going to say the same thing bdamomma Oct 2018 #6
Yes, look like Putin has been carefully cultivating Americans for close to two decades. Blue_true Oct 2018 #34
And there's more about his shady finances as well. smirkymonkey Oct 2018 #4
disclosure Nasruddin Oct 2018 #21
Good Questions montanacowboy Oct 2018 #5
Yes PatSeg Oct 2018 #7
Bottle and can returns? Sneederbunk Oct 2018 #8
Cutting lawns. LibDemAlways Oct 2018 #18
Judging high school beauty contests? KY_EnviroGuy Oct 2018 #46
And the opposition party did not investigate this? awesomerwb1 Oct 2018 #9
Perhaps more reasons why the FBI was so tightly leashed. Golden Raisin Oct 2018 #37
that's a lot of rubles! Sancho Oct 2018 #10
Maybe he got it from the Bank of Dad? FakeNoose Oct 2018 #11
If he got the money from his parents, he should have disclosed that. fleur-de-lisa Oct 2018 #12
When we got $2K of our downpayment from my in-laws woodsprite Oct 2018 #26
Charming MIL dhol82 Oct 2018 #28
Yup! Happily married for going on 34 years! woodsprite Oct 2018 #36
Wow. You are fortunate in your husband! dhol82 Oct 2018 #44
Charming....LOL! SammyWinstonJack Oct 2018 #47
WE will find out after bluestarone Oct 2018 #13
There are rumors online that they are into all sorts of shady stuff. cbdo2007 Oct 2018 #14
How much did he earn through teaching and giving lectures? BigmanPigman Oct 2018 #15
I immediately caught that. Pacifist Patriot Oct 2018 #57
The numbers don't add up Buckeyeblue Oct 2018 #16
So why didn't he just say that? dhol82 Oct 2018 #31
It's also possible that the numbers are wrong FBaggins Oct 2018 #56
Money laundering? Bernardo de La Paz Oct 2018 #17
He's a Repuke. There's no way LibDemAlways Oct 2018 #19
A big score at the craps table? George II Oct 2018 #20
The lobbyists he shared a victory dinner with? JohnnyRingo Oct 2018 #22
Probably his parents. Gift tax returns are filed by the giver, not the receiver. pnwmom Oct 2018 #23
Except we all know he busted his butt and nobody helped him. meadowlander Oct 2018 #38
Poor baby! n/t pnwmom Oct 2018 #40
Probably the same way almost all of Congress gets rich off their salary. 7962 Oct 2018 #27
Then there is the safeinOhio Oct 2018 #29
Even if serious dirt is revealed on Kavanaugh, I wonder if it will get mainstream press now AdamGG Oct 2018 #30
Anything about a dog named "Checkers?" MrScorpio Oct 2018 #32
There's something wrong in your post PJMcK Oct 2018 #33
Yeah, $60k for a judge didn't make sense. Hassin Bin Sober Oct 2018 #49
When he worked at the White House during the GWB years FakeNoose Oct 2018 #50
This Was My Thought RobinA Oct 2018 #58
Why does everyone leave Congress fabulously wealthy compared to when they came in? MadDAsHell Oct 2018 #35
pfft d_r Oct 2018 #39
My family member got a $450k house on a $65k yr income KWR65 Oct 2018 #41
family could have helped him get loans JI7 Oct 2018 #42
I think he's crooked rockfordfile Oct 2018 #43
Money Laundering? Bribes? erpowers Oct 2018 #45
Sounds like a guy after tRump's own heart. SammyWinstonJack Oct 2018 #48
GOP perks for those being groomed? KY_EnviroGuy Oct 2018 #51
The baby Jesus took care of it? KentuckyWoman Oct 2018 #52
So his paremts clearly had money to send him to HS prep and Ivy JDC Oct 2018 #53
Is there more than a handful of people Wednesdays Oct 2018 #54
Russian and American Oligarchs funding a drumpf shell corporation. democratisphere Oct 2018 #55
graft? corruption? payoff? shady deals? niyad Oct 2018 #59

olegramps

(8,200 posts)
25. I would not be surprised if he wasn't bankrolled by wealty Republicans. Probably bought.
Mon Oct 8, 2018, 05:28 PM
Oct 2018

These extreme right wing fanatics are groomed by the Federalists and Heritage groups for higher positions. The entire situation is crooked as a dogs hind leg. They used their influence to get them appointments and pave the way.

bdamomma

(63,922 posts)
6. I was going to say the same thing
Mon Oct 8, 2018, 02:52 PM
Oct 2018

great minds................russian oligarchs.

Notice that the Russian regime was quite glad with tRumps choice of SC nominee. Yea, sure no collusion

Blue_true

(31,261 posts)
34. Yes, look like Putin has been carefully cultivating Americans for close to two decades.
Mon Oct 8, 2018, 06:04 PM
Oct 2018

He found that republicans were corrupt, so he focused his efforts on that party. My guess is the reason why he so hated President Obama is the President slowed down his scheme.

 

smirkymonkey

(63,221 posts)
4. And there's more about his shady finances as well.
Mon Oct 8, 2018, 02:51 PM
Oct 2018

The gambling, the over $200k in debt that was mysteriously paid off, the $90,000 in country club fees, other things that he purchased that were way beyond his means - private schools, etc.

We should have gone with his finances over his slimy behavior in prep school in college. It would have been much easier to nail him on that.

Nasruddin

(754 posts)
21. disclosure
Mon Oct 8, 2018, 05:19 PM
Oct 2018

We have to have disclosure of financials for political appointees and elected officials. The highest ones - the
elected office holders, cabinet secretaries, and supreme court justices - have to be public and complete. We can
discuss lower ranking appointees, the depth of disclosure, and various corner cases, but that should be the principle. Medical
including cognitive testing too. Cannot take office without it. Ideally, cannot get on the ballot or
be submitted for congressional approval before these disclosures are complete.

There should be no principle of privacy for these office holders.

You can be as big a degenerate and thief after your term is up as you can get away with, of course.


montanacowboy

(6,103 posts)
5. Good Questions
Mon Oct 8, 2018, 02:51 PM
Oct 2018

that we all want to know the answers to

and the gambling debts? and the golf course fees?

Comon, who was funding this asshole? Russia? the NRA?

When you purchase a home you need to declare where the down payment comes from right? what was his answer?

FakeNoose

(32,767 posts)
11. Maybe he got it from the Bank of Dad?
Mon Oct 8, 2018, 03:27 PM
Oct 2018

I don't know how rich his parents are, but they were both working professionals even though they may be retired now. It's possible that Dad made some good investments that paid off, and gave the down payment to Brett and Ashley. It still doesn't explain how they can keep up with the monthly mortgage payments though.

fleur-de-lisa

(14,628 posts)
12. If he got the money from his parents, he should have disclosed that.
Mon Oct 8, 2018, 03:41 PM
Oct 2018

Instead, he dodged, evaded and gave bullshit answers when questioned about it during the hearings.

woodsprite

(11,926 posts)
26. When we got $2K of our downpayment from my in-laws
Mon Oct 8, 2018, 05:30 PM
Oct 2018

we had to provide a letter signed by both them and my husband and I stating that the $2K was a gift and would not need to be paid back.

(Of course MIL did it just for the realtor. Didn't even let us know that it was a loan, not a gift. Showed up at our house a couple months after settlement with a surprise promissory note for us to sign charging us principal plus 10% interest). Not a lot now, but when hubby and I were both bringing home $10/K each per year, it was rough.

woodsprite

(11,926 posts)
36. Yup! Happily married for going on 34 years!
Mon Oct 8, 2018, 06:11 PM
Oct 2018

Early on, hubby and I made a pact with each other that we would never let her come between us after we caught on that she would lie to us and try to pit us against each other when she talked to us. They moved down to FL about 10 yrs ago so we see them about 2-3x/yr now instead of weekly.

And need I say -- they are Fundy evangelical Trump voters.

Pacifist Patriot

(24,654 posts)
57. I immediately caught that.
Tue Oct 9, 2018, 07:20 AM
Oct 2018

Not defending Kavanaugh by any stretch, but assuming his federal salary is his only income is rather short-sighted.

Buckeyeblue

(5,502 posts)
16. The numbers don't add up
Mon Oct 8, 2018, 05:02 PM
Oct 2018

It's sketchy but in 2003 mortgages were the wild, wild west of banking.

He probably bought the house with no money down and a 5 year interest only arm which would have kept payments very low. By the time the arm expired he was a federal judge making over $200k per year. He probably refied with a pretty good interest rate and an affordable payment. Remember, at the height of the financial crisis, everyone was refinancing. Rates were low. And by that point he could afford the higher payment.

As to the other debt he was able to clear, did it get paid off or did he refinance the home to consolidate his debt? Seems like a lot of debt to clear but maybe he drinks cheap beer and they drive old cars...Or maybe they have a Russian speaking nanny.

FBaggins

(26,760 posts)
56. It's also possible that the numbers are wrong
Tue Oct 9, 2018, 12:20 AM
Oct 2018

I'm not sure whether the author got the salary for 2006 to compare to the monthly payment. He just says that he was a "federal employee"... but the WH staff secretary currently makes the maximum for a WH staffer (~$180k). That's a much larger gap than is accounted for by just inflation... then the author just dismisses Mrs. Kavanaugh's contribution from two jobs as "neither high-salaried positions"... but she had been Bush's personal assistant.

Plus - He had already been appointed to the appellate court with every indication that he was about to be approved.

JohnnyRingo

(18,641 posts)
22. The lobbyists he shared a victory dinner with?
Mon Oct 8, 2018, 05:19 PM
Oct 2018

I never heard of federal judges accepting money and gifts from special interest groups, but Kavenaugh is a new kind of conservative judge. Used to be called crooked.

Imagine how much one would have to be worth to afford a house worth $1.2m. I would think he has to have at least ten times that much. Maybe his wife sells potholders on Etsy.

pnwmom

(108,995 posts)
23. Probably his parents. Gift tax returns are filed by the giver, not the receiver.
Mon Oct 8, 2018, 05:22 PM
Oct 2018
In general. If you are a citizen or resident of the United States, you must file a gift tax return (whether or not any tax is ultimately due) in the following situations. If you gave gifts to someone in 2017 totaling more than $14,000 (other than to your spouse), you probably must file Form 709.
Instructions for Form 709 (2017) | Internal Revenue Service - IRS.gov
https://www.irs.gov/instructions/i709

AdamGG

(1,294 posts)
30. Even if serious dirt is revealed on Kavanaugh, I wonder if it will get mainstream press now
Mon Oct 8, 2018, 05:45 PM
Oct 2018

Two other women came forward and said that Clarence Thomas talked about porn with them, but practically no one knows that because once he was confirmed, the MSM moved on to other stuff. And, there's like a million times more distractions with Trump than there were back then.

PJMcK

(22,050 posts)
33. There's something wrong in your post
Mon Oct 8, 2018, 05:49 PM
Oct 2018

The issue of Kavanaugh's salary is discussed in a CNBC article:

https://www.cnbc.com/2018/07/10/how-much-supreme-court-justices-get-paid.html

The important sentence is this:

Kavanaugh formerly served on the U.S. Court of Appeals for the D.C. Circuit, where judges make $220,600 a year, according to the U.S. Courts website.


This is significantly different information than the article you posted, flier-de-lisa.

Regardless, there were a lot of fishy things about Kavanaugh's background that were swept under the rug. His finances are one of the biggest problems I had with his nomination and that was before we learned about his history of sexual assaults.

The man should not be anywhere near the Supreme Court.

Hassin Bin Sober

(26,342 posts)
49. Yeah, $60k for a judge didn't make sense.
Mon Oct 8, 2018, 09:42 PM
Oct 2018

I’ve done loans for friends who are local judges and earn over $200k

FakeNoose

(32,767 posts)
50. When he worked at the White House during the GWB years
Mon Oct 8, 2018, 09:50 PM
Oct 2018

... he probably made the lower salary. (Or maybe even before that, when he worked for Ken Starr.) Once he moved on up to the federal bench, his "salad days" were over.

RobinA

(9,894 posts)
58. This Was My Thought
Tue Oct 9, 2018, 08:30 AM
Oct 2018

No way does a federal court judge make $62,000 a year. Plus, I would suspect that there are other perks involved.

 

MadDAsHell

(2,067 posts)
35. Why does everyone leave Congress fabulously wealthy compared to when they came in?
Mon Oct 8, 2018, 06:09 PM
Oct 2018

Why do heads of Federal agencies, making decent but not outlandish salaries, retire from their positions better off than 99% of us?

Whether judicial, executive, or legislative branches, something is EXTREMELY FISHY about the wealth of so-called "civil servants."

Thanks for posting, I'd love for an investigative journalist to spend some serious time on this topic.

KWR65

(1,098 posts)
41. My family member got a $450k house on a $65k yr income
Mon Oct 8, 2018, 06:53 PM
Oct 2018

People will loan you money if you have good credit and a down payment. You can get his financials from the Senate Judiciary Committee.

erpowers

(9,350 posts)
45. Money Laundering? Bribes?
Mon Oct 8, 2018, 09:33 PM
Oct 2018

The house definitely looks like a money laundering thing to me. Could Kavanaugh have been taking bribes. He really did have a large amount of expensive things with seemingly little money. The only explanation I can think of is his wife was making more money than people think she was making.

KY_EnviroGuy

(14,494 posts)
51. GOP perks for those being groomed?
Mon Oct 8, 2018, 09:52 PM
Oct 2018

At the very least, he's probably made a bunch of top level connections in high finance......

JDC

(10,133 posts)
53. So his paremts clearly had money to send him to HS prep and Ivy
Mon Oct 8, 2018, 11:12 PM
Oct 2018

I am sure that he has done things to get that dough that are typical Repub chicanery, but I am guessing eveything he has ever had financially comes from his or her parents.

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