Homeowners Feel the Pinch of Lost Equity

http://www.nytimes.com/2007/11/08/business/08borrow.html?pagewanted=2&_r=1&ref=business

Homeowners Feel the Pinch of Lost Equity

By PETER S. GOODMAN
Published: November 8, 2007
RENO, Nev., Nov. 5 — As his wedding day approached last spring, Marshall Whittey found that his money could not keep pace with the grandiosity of his plans. But rather than scale back, he chose instead, like millions of homeowners across the country, to borrow against the soaring value of his home.

He and his bride, Holly Whittey, exchanged vows on the grounds of a sumptuous private estate in the Napa Valley. They spent their honeymoon at a resort in Tahiti.

But now, in an ominous portent for the national economy, Mr. Whittey has grown tight with his money. His home is worth far less than it was a year ago, and his equity has evaporated. And like many other involuntary adopters of a newly economical lifestyle, he can borrow no more.

:rofl:

I produce a luxury good, RPG games, and I am seeing it, ahead of the curve.

My wife's step-son from a former marriage is geting married in Mexico City.....on THANKSGIVING! They want to have their anniversary off every year, so they chose Thanksgiving. Now, who wants to buy airfare to Mexico City to go to a wedding?
Plus, you have to get a passport, which takes forever! Sorry......we sent them a check for $1000 and told them to have a nice life. We have family over at Thanksgiving, and they know that. How selfish was this?

We use ours as homes.

Assuming they are middle income folks, a few months of saving could have paid for a modest Tahiti vacation. And why rent a private retreat for wedding if you have for borrow for it. Use your backyard. I have no sympathy for these folks.

they felt they needed to. But this is the way they have done things forever, and yes to a point it is generational

I am posting from my new... brand new, laptop... we saved for it... and it took us months... my husband is playing on the replacement gaming rig... again, we saved for it... and they are fully paid for.... different values and different attitudes.... really.

We don't buy electronics too often either... the machines they replaced were eight and seven years old... and on last legs.

The only unexpected buy, also fully paid, is the IPOD I am listening to Randi on right now, on its new shiny radio speaker base... and the only reason for those was... my local liberal station flipped... so I either did that, so I can take the IPOD to the coffee shop when I rarely go there any more... or miss my radio

But really it is a cultural difference. And this recession will hit many of the younger kids who have never seen one... in the nuts...

And I will make the bet, it will change some habits.

By the way... my dad is the man who told me... you want something, you save for it, you don't buy on credit at all costs.

I'm one of the few people I know who doesn't come home with a load of stuff from Walmart, Best Buy or Target.

the base for the IPOD, has a huge crack on its face.

It sells for 80 at best buys... I got it at the swap meet for 20

It works... so what if it has a crack on its face?

And that is the kind of attitude I learned from watching people much poorer than me be happy...

He always told me "Don't spend money until you have it". We only use credit for emergencies and, of course, our home.

The time of instant gratification on a grand scale is coming to an end for many.

Julie

It was a rip-snorting GREAT wedding, too! The place was decorated beautifully, all the rooms were opened up so that family could find family around every corner and in the big back yard.

A good time was had by all, and we let them drive off at the end of the festivities, hung out until the next day, and gave the place a good cleaning!

What's wrong with that sort of thing, really? Why have all these fancy venues if you can't afford them without great pain?

Nothing wrong with a nice backyard wedding.

they paid for it... but we still cut down on it quite a bit... after they found the costs in the US were a tad higher than they were expecting

I would have been peachy keen with a wedding with just my parents, my husband's parents, and just twenty or so very close family friends and relatives... and held here at the condo meeting room.

But they explained that it is not just a fancy weding, but the mutiple connections and favors owed and favors needed.

Hell, for my uncle the whole thing is to get money for the new couple.

Another country by the way and another set of values

My wedding was in my parent's house and cost less than I made in a week. After most of the older folks ran out of steam, we took a road trip to the "Night of the Living Dead" cemetery. Nobody forgets that day after 35 years. Even though I'm divorced now, I'd do it the same way today.

We hosted my brother's wedding here in our modest three bedroom colonial. It was a splendid event! The bride's mother is an interior decorator and wedding was in December. A beautiful winter motif. When the bride's mom was done I walked around thinking "this is MY house?" It was wonderful.

I was so honored to be able to do that for them and a great time was had by all. Will never forget it.

Julie

Debt is not wealth. Not when you do it, not when Wall Street does it.