Reply #22: 2 Problems

[Senator]

1) A car is not real estate. Cars are consumer goods that immediately depreciate in value, as they say "once the wheels leave the showroom floor" and will someday be worthless. And while property values may fluctuate -- even wildly at times and places -- the history of appreciation in stable markets has a track record of decades.

2) The "inspirational seminar" as basis for ability to repay is hardly comparable to a proven ability to earn, again with a track record of years or decades.

On these points you are comparing apples and oranges, not simply exaggerating.

Also FWIW -- your in-hindsight perspective. Congratulations on not being dragged into the quagmire for the past 2 years -- which is about when the term "upside down" really spread through the national lexicon. Many were not so lucky as the entire real estate industry's response to the by-then-known elephant in the LR was a mad attempt to work their way out of it with, as you say, "less than I even thought possible" offers and tricks. That's probably just human nature I suppose/hope.

But three, four, and five years ago was an entirely different world. There was a good argument then that "there was no better place in the world" for a nest egg than in equity in real estate in a stable, still-appreciating local market.

It's not just the victims of predation who have been hit by a tsunami event here.

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