Are People Nuts?

[Fishindude77]

An acquaintance was recently proudly telling myself and a group how his daughter and boyfriend were buying a home together. Now for the details:


She's about 19 and has a child from a man that has not claimed it or supported it.
She just finished up her GED and just got into an entry level type full time job.
He's 20-21 and has an entry level type job. (I'd guess $50K annual income between the two max)
They're not getting married and have no plans to do so.
It's a $140,000 first house.
Getting a joint loan and needed it in both their names because neither has enough income solo and don't have a large enough down payment.
Doing a 30 year loan to keep payments low as possible.
From seeing what they drive, guessing both have car payments.
The small down payment on home will use any savings they have



A track record of irresponsibility, unable to commit to each other, minimal income and a dumb loan and those parents were talking how proud they were of these two for getting their first home and how it will be so good for them? This wreaks with extremely high probability of a break up, foreclosure and some ruined credit. I don't get it? I would stomp, scream, and yell to steer my kids away from something like this.

Sadly, this seems to be the norm.

[97guns]

id say congratulations, you must be so proud

what else do you say?

[bjl584]

I agree with 97guns. Just say congrats and walk away. Not much you can do. Sadly, this type of thing happens all the time. Just take comfort in knowing that you are doing things the right way. These two serve as a good example of what not to do if nothing else.

[disneysteve]

id say congratulations, you must be so proud

what else do you say?

I agree with 97guns. Just say congrats and walk away.

Sorry. I disagree. I would not congratulate stupidity. I don't see that as something to be celebrated.

What I would actually say would depend on the situation and my relationship with the person. It would probably be something along the lines of, "Really? That sounds like a disaster waiting to happen. Good luck with that."

[riverwed070707]

About the only thing to make the situation worse is if they couldn't even qualify for the home so one of their relatives took it out for them... my BIL did that. Relationship ended a few months later. It was ugly.

[Fishindude77]

What I would actually say would depend on the situation and my relationship with the person. It would probably be something along the lines of, "Really? That sounds like a disaster waiting to happen. Good luck with that."

Funny !
My comment was something along the lines of ..... "Oh, so they're not committed enough to marry, but need each others income to get a loan. What could go wrong here?"
Wasn't too popular

[ua_guy]

It's because there are no consequences and nobody really fears having bad credit anymore. So if they break up, the house is a foreclosure and they have bad credit for a few years until banks draw them back in.

I don't think it's right. I wouldn't know what to tell that person, either, other than "I hope it works out for them".

[97guns]

What I would actually say would depend on the situation and my relationship with the person. It would probably be something along the lines of, "Really? That sounds like a disaster waiting to happen. Good luck with that."

Funny !
My comment was something along the lines of ..... "Oh, so they're not committed enough to marry, but need each others income to get a loan. What could go wrong here?"
Wasn't too popular

i dont think your invited to the house warming party

[FrugalFish]

You described the people from whom I bought my house about a decade ago. It was on the brink of foreclosure, so we got a great deal. I guess I can see the up side, but not so much for them.

[disneysteve]

i dont think your invited to the house warming party

That's okay. They can't afford to throw a party anyway.

[VinceMcMan]

People are very crazy indeed!
I tend to stay away from people. I find money to be a lot more fun!

[LivingAlmostLarge]

Good luck they are going to need it. Buying a home is pain in the rear when married and divorced. It's harder when you aren't.

[Thrif-t]

Know of a similar situation in my own family, but the couple are married, just buying more house than they can afford cause they got a funky loan. Everyone is happy for them. I'm just keeping my mouth shut.

Does anyone know, don't you have to pay pmi if you don't put 20% down?

[cypher1]

Does anyone know, don't you have to pay pmi if you don't put 20% down?

That is correct. Also assuming the couple got an FHA mortgage. Which would mean PMI would remain on the life of the loan, or until they refinance.

[FLA]

I read the first two lines, and I seriously have to read this tomorrow so I son't misspeak