Foreclosure Bubble
Finance a newer car to build credit back up from imminent shortsale/foreclosure? but with monthly payment?
We currently out right own 1999 Dodge Grand Caravan with 93K miles but this van has been a problem since we bought it in 2001. Now AC only works in 5th (highest), power window & vent doesn’t work on driver side, CD player/radio power on/off, volume doesn’t work and we had to have several things repaired mechanically on this van & and the inside roof is now peeling off and bubbling. Would buying a newer mini van to replace this lemon vehicle will be a good idea to build our credit back up from our future credit hit that will happen this year due to short sale/foreclosure? We’ve been meaning to get rid of this van for 2 years now and we would like to get a better vehicle before this van gives another problem that we need to repair with high cost. We have 5K in the bank but also have 11K credit card debt. Should we pay off credit card or put down pmt on the minivan with this 5K? For the minivan, we are interested in Toyota Sienna around 12K and the van will be a family hauler.
Wow, you are really in a tough spot. You definitely need to replace the vehicle, but I recommend doing it without incurring any more debt.
Keep the 5K for emergency savings, and pay the credit cards down from your income. If you have more specific questions, let me know, but the site below should give you some good tips on how to handle savings and debt.
Good luck!
Housing bubble explodes in foreclosures
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60 Minutes – Walking Away (May 9, 2010) $17.95 Airdate: 5/9/10 Currently about 7 million U.S. homeowners are behind on their mortgages, and some may end up losing their homes because they can’t make the payments anymore. Then there are those homeowners who can make the payments, but are going into “strategic default,” walking away from their homes because they’re “underwater” — worth far less than the mortgage. Is this financially savvy or s… |
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60 Minutes – House of Cards (January 27, 2008) $17.95 Stockton, California, is in many ways the ground zero for the current financial crisis and a microcosm of everything that went wrong with subprime mortgages and their severe impact on the U.S. and world economy. A few years ago, Stockton was one of the hottest real estate markets in the country, and easy financing helped buyers purchase their dream home with no money down. Today, Steve Kroft disco… |
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NIGHTLINE: A Town Drowning in Foreclosures: 11/11/08 $14.95 In this report, we go to Mountain House, California, a town where roughly 90 percent of the residents are drowning as home prices continue to plunge.It’s a stunning statistic that gives the town the distinction of having the highest concentration of underwater mortgages in the country. Will the government come to its rescue? It’s an installment of our series ”Realty Check.”Other reports included… |
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And Then the Roof Caved In: How Wall Street’s Greed and Stupidity Brought Capitalism to Its Knees $3.00 And Then the Roof Caved In will lay bare the truth of the credit crisis, whose defining emotion at every turn has been greed, and whose defining failure is the complicity of the U.S…. |
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Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis $7.93 An updated and revised look at the truth behind America’s housing and mortgage bubblesIn the summer of 2007, the subprime empire that Wall Street had built all came crashing down. On average, fifty lenders a month were going bust-and the people responsible for the crisis included not just unregulated loan brokers and con artists, but also investment bankers and home loan institutions traditionally… |
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Busted: Life Inside the Great Mortgage Meltdown $0.79 The fiasco that sank millions of Americans, including one journalist, who thought he knew better.A veteran New York Times economics reporter, Ed Andrews was intimately aware of the dangers posed by easy mortgages from fast-buck lenders. Yet, at the promise of a second chance at love, he succumbed to the temptation of subprime lending and became part of the economic catastrophe he was covering. … |
