Relatives -- if my blood, you sure can't pick them! 
I have 4 brothers, all of whom I love dearly (and fought with growing up!). I am watching in dismay one my brothers - TJ -- facing the possibility of losing his home to foreclosure. The whole disfunctional family dynamic thing always comes into play here. Another brother, MJ, is a real estate agent and born hustler and lives to impress those that want to be impressed. TJ works part-time for him at this time and has worked full-time for him when he owned a business. Anyway, TJ was living in a condo with a low payment and was perfectly happy. MJ talks him into selling the condo a few years back and buying a house in a much better neighborhood for a much higher price. MJ is thinking that the prices will climb in a few years and that TJ could sell at the high end at that time and then buy another condo. TJ (the brilliant non-thinker that he is) goes along with the plan. MJ gets him one of those no-doc, adjustable rate, junk loans that are so well known. Fast forward to today....... The payment is a negative amortization loan!!! The payment has doubled and TJ is struggling to make the payment. I have asked TJ how he would agree to such a "deal." TJ goes along with MJ's plans (always) and trusted him blindly. That is the part that I do not understand. TJ is current on his payments but is running out of $$. He tried to get a loan modification but was told that that option would not be available for 4-5 months because the bank, Downey Savings, went under. The merger with Whomever Bank would need to be completed first. So, TJ is looking for a roommate and looking for more work. That is becoming more difficult these days even though he has a 4 year college degree. I told him that the Census Bureau is hiring temporary workers. Good luck to him and the thousands next to him in line. I get so frustrated at both TJ and MJ. TJ - because his outlook on the world is avoidance and denial - "If I don't think about it, it will go away." He is one of the most unambitious people I have ever met and he is 40 years old!!! And MJ - how could he dare to do this to our own brother?! A junk loan -- he gambled TJ's future (I know TJ allowed this to happen - no backbone at all) and avoids the subject when I bring it up. I, the frugal troublemaker of the family, bring it up anyway. They are looking into other loan options but it does not look good. MJ cannot bail him out because his own income has decreased in the past year. He has slashed his spending but the house payment alone is very high. I have nagged him to quit smoking because that does cost money. He also does some video production work but that is not steady. I just hope TJ gets his mindset into crisis mode and kicks it into gear.
Brothers! GRR
January 26th, 2009 at 09:58 pm
January 27th, 2009 at 05:40 am
January 27th, 2009 at 06:34 am
January 27th, 2009 at 08:16 am
Family ... yes, sometimes it is best not to forge business relationships amongst one another ... my lawyer-brother handled an estate situart for my inlaws/DH's great aunt. It ended up so awfully that my brother actually tried to get out of it - did whatever legal thigs he needed to and submitted it to the judge in probate. The judge WOULDN'T LET HIM OUT. DBrother is trapped in this insaneness ... UGH!
January 27th, 2009 at 09:01 am
January 27th, 2009 at 09:41 am
January 27th, 2009 at 10:04 am
I have assisted them in clearing debt in the past, however, since I found out my aunt was taking on additional work cleaning houses, I can only assume they are back in the red.
I feel bad for them and for others who struggle financially. That said, some is due to things outside of our control, however, often times, we can take steps to protect ourselves.
I will pray for your brother(s) and you. God bless.
January 27th, 2009 at 10:18 am
I was fortunate not to listen to others who told me to trade up house wise. I would be stuck with an overvalued, highly taxed disaster. As things stand now I have no mortgage. I just need to make taxes and utilities!
I feel for your brother. One of my brothers talked me into an investment and against my better judgment I went along. I learned a valuable lesson when I lost all of the money in that investment.
If I don't understand it then I don't invest. If it seems too good to be true it is!
I hope you brother is able to get out of this mess!
January 27th, 2009 at 05:19 pm