The bank is taking my entire paycheck...

That apartment is way overpriced...

The apartment isn't overpriced, though most people probably can't afford to go any lower than what the big banks require
I suppose for our local economy it might seem steep, but that’s just how the market stands right now.

A property is really only worth whatever the highest Customer is willing to pay 😉
that's essentially the bedrock of how our economy functions 🙂

plus, things can always slide lower than you expect... I mean, even a major bank could seize a house and auction it off for a third of what was owed on the mortgage, leaving the rest of the debt hanging over someone's head

Is it overpriced? Honestly, who knows... maybe, maybe not. It’s hard to say in this market.
Here’s how the numbers currently look:
Fully furnished apartment with all the appliances: $125,000
Empty unit, just the bare bones: $115,000

So, it wasn't even valued at $90K.
And honestly—given how much the market is tanking right now—you probably won't even be able to move it for more than $80K.

Lawrence Wright7 said:Is it overpriced? Honestly, who knows... maybe, maybe not. It’s hard to say in this market.
Here’s how the numbers currently look:
Fully furnished apartment with all the appliances: $125,000
Empty unit, just the bare bones: $115,000

So, have you actually had any offers on them yet?

Lawrence Wright7 said:Is it overpriced? Honestly, who knows... maybe, maybe not. It’s hard to say in this market.
Here’s how the numbers currently look:
Fully furnished apartment with all the appliances: $125,000
Empty unit, just the bare bones: $115,000

The market is the only judge that matters here.
For instance, my bank appraised an apartment I bought for $85,000 at $110,000, yet Zillow is littered with similar listings priced at $95,000 that haven't moved in months.
At the end of the day, the only way to find out is to list it and see if anyone actually bites.

Richard White48 said:The market is the only judge that matters here.
For instance, my bank appraised an apartment I bought for $85,000 at $110,000, yet Zillow is littered with similar listings priced at $95,000 that haven't moved in months.
At the end of the day, the only way to find out is to list it and see if anyone actually bites.

Interest has been pretty thin, honestly, but one serious Customer actually showed up. Right now, he and his wife are scrambling to secure financing, basically running from one Chase branch to another... I'm genuinely rooting for them to pull it off.

Lawrence Wright7 said:Interest has been pretty thin, honestly, but one serious Customer actually showed up. Right now, he and his wife are scrambling to secure financing, basically running from one Chase branch to another... I'm genuinely rooting for them to pull it off.

Good luck with everything. Fingers crossed.

Andrew Martin13 said:Good luck with everything. Fingers crossed.

Thanks,

So, here’s the deal. This Customer had their mortgage application rejected by Goldman Sachs. They "only" offered them $60,000, which is an absolute joke considering the couple brings in a combined income of $3333. She’s got a steady gig at a government agency and he’s on a contract... plus, they’ve still got an old debt sitting there at Goldman Sachs of about $15000.
Now they’re trying their luck over at Chase. The folks there said they could probably swing around $80,000, but there's a catch: they have to move their entire payroll over to Chase and completely wipe out that debt with Goldman Sachs first.
But here's where it gets messy. Apparently, because of the rejection and some red tape involving their credit score—basically a total nightmare with the credit bureaus—they’re being told they can't even apply for a new loan for the next six months. Is that actually how this works?! It sounds like a complete scam to me!

On the bright side, we just had another interested buyer pop up in the meantime.
Something is definitely moving.

There’s plenty of it out there—stories about credit and loans that are honestly just heartbreaking. A friend of mine once took out a mortgage through Antunović to buy an apartment. The kicker? She never even got the keys. But get this—for fifteen years, she’s been dutifully making every single payment toward that loan. It’s a total nightmare. This woman has been going to work every single day for fifteen years, and for what? Not a cent to show for it. And she isn't just anyone, either—she’s a mechanical engineer, and I’m pretty sure she even finished her Master’s degree in the meantime.

Danco, what's the status? Did you land a new buyer yet? You have to start paying back that loan on September 1st, so how are you planning to handle that?

Bumping this thread. In my opinion, this is the best discussion we have on the US recession and all the shifts we've dealt with since 2008.

Elizabeth Harris11 said:There’s plenty of it out there—stories about credit and loans that are honestly just heartbreaking. A friend of mine once took out a mortgage through Antunović to buy an apartment. The kicker? She never even got the keys. But get this—for fifteen years, she’s been dutifully making every single payment toward that loan. It’s a total nightmare. This woman has been going to work every single day for fifteen years, and for what? Not a cent to show for it. And she isn't just anyone, either—she’s a mechanical engineer, and I’m pretty sure she even finished her Master’s degree in the meantime.

My acquaintance "bought" an apartment from Antunović because it was significantly cheaper than any other new construction. It's just a story about how naive people can be; I have a colleague who fell for the same thing. Even today, you still see listings for apartments that are 20-30 percent cheaper than everything else. Any sane person knows that's a scam.

Jerry Martinez5 said:Danco, what's the status? Did you land a new buyer yet? You have to start paying back that loan on September 1st, so how are you planning to handle that?

Bumping this thread. In my opinion, this is the best discussion we have on the US recession and all the shifts we've dealt with since 2008.

My acquaintance "bought" an apartment from Antunović because it was significantly cheaper than any other new construction. It's just a story about how naive people can be; I have a colleague who fell for the same thing. Even today, you still see listings for apartments that are 20-30 percent cheaper than everything else. Any sane person knows that's a scam.

Even though this is the definitive thread on the American recession, it hasn't really been getting much fresh life lately.

I basically followed in Danco's footsteps. I took out a mortgage forbearance. Well, that expired, and since I haven't found a better or more stable job, my boss is basically threatening to fire me. This whole forbearance situation ended up costing me $67 more than my old monthly payment would have, plus the extension on the loan term. A new forbearance would just be shorter. And more expensive.

I don't know. Selling a house would be incredibly difficult. It's not that simple when you have a family to think about. At least Danco doesn't live with his family...

I don't know... the situation feels pretty hopeless, I guess. 😕

🤷

Hi everyone,

I’ve been scouring this forum and the rest of the web, but I can't find any concrete information on this. I'm really hoping someone here can point me in the right direction.

To get straight to the point, a friend of mine has landed himself in—to put it politely—a complete shitshow. 🙄
He’s a full-time, permanent employee at a firm based in San Francisco, earning roughly $1.50 (it fluctuates month to month depending on his hours).
Recently, he took out a 10-year loan from the bank to clear out some old debts he was carrying, with monthly payments set at $633. Because it's a formal arrangement, there's an administrative garnishment on his wages, meaning the payroll department deducts those $633 immediately.
On top of the loan, he's also dealing with child support garnishments, which work just like the loan deduction, $667 directly from his paycheck, because he wasn't keeping up with his previous obligations. At least with this, we know it's going to be a recurring monthly hit.

Based on his total salary of $1.50, the payroll office takes out both the loan and the support payments, totaling $1300. This leaves him with a measly $167 hitting his bank account every month.

I think I heard somewhere—or maybe read it—that in cases like this, loan repayments (and general debt collection) are legally capped at a MAXIMUM of 1/3 of one's income. And by "income," they mean what's left AFTER the child support is deducted.
So, if his gross pay is 4400 and the support is 2000, he's left with $733, which would be considered his actual disposable income.
By that logic, his loan payment should only be 1/3 of $733 = 733.33 dollars.

If this is actually true, could someone please direct me to the specific law or regulation that backs this up? If he can prove it, he might be able to go to the bank and negotiate an extension on the term to bring the monthly payment down to that $733 mark or even $267. I'd much rather he pay it off over a longer period than live like this. He doesn't own a house, he doesn't have a car, he has nothing. He’s living with his parents and it's nearly impossible for him to survive on just $167 (he's constantly overdrawn, and he can't even use a credit card).

Thanks in advance to everyone for any info you can provide! 🙏

Richard Bailey15 said:Hi everyone,

I’ve been scouring this forum and the rest of the web, but I can't find any concrete information on this. I'm really hoping someone here can point me in the right direction.

To get straight to the point, a friend of mine has landed himself in—to put it politely—a complete shitshow. 🙄
He’s a full-time, permanent employee at a firm based in San Francisco, earning roughly $1.50 (it fluctuates month to month depending on his hours).
Recently, he took out a 10-year loan from the bank to clear out some old debts he was carrying, with monthly payments set at $633. Because it's a formal arrangement, there's an administrative garnishment on his wages, meaning the payroll department deducts those $633 immediately.
On top of the loan, he's also dealing with child support garnishments, which work just like the loan deduction, $667 directly from his paycheck, because he wasn't keeping up with his previous obligations. At least with this, we know it's going to be a recurring monthly hit.

Based on his total salary of $1.50, the payroll office takes out both the loan and the support payments, totaling $1300. This leaves him with a measly $167 hitting his bank account every month.

I think I heard somewhere—or maybe read it—that in cases like this, loan repayments (and general debt collection) are legally capped at a MAXIMUM of 1/3 of one's income. And by "income," they mean what's left AFTER the child support is deducted.
So, if his gross pay is 4400 and the support is 2000, he's left with $733, which would be considered his actual disposable income.
By that logic, his loan payment should only be 1/3 of $733 = 733.33 dollars.

If this is actually true, could someone please direct me to the specific law or regulation that backs this up? If he can prove it, he might be able to go to the bank and negotiate an extension on the term to bring the monthly payment down to that $733 mark or even $267. I'd much rather he pay it off over a longer period than live like this. He doesn't own a house, he doesn't have a car, he has nothing. He’s living with his parents and it's nearly impossible for him to survive on just $167 (he's constantly overdrawn, and he can't even use a credit card).

Thanks in advance to everyone for any info you can provide! 🙏

Well, I wouldn’t say that’s entirely accurate. It really all hinges on what was actually signed in those fine-print sections—because, if memory serves me correctly, a debtor can absolutely agree to let the entirety of their paycheck be garnished down to the very last cent, usually buried deep within those tiny, illegible clauses you only notice when it's too late. Now, I could certainly try to untangle the legal specifics for you, but honestly, it feels like a moot point at this stage because, let's be frank, our government institutions just don't seem to function with any real efficacy. In my estimation, the only practical way forward is to head straight down to the local bank branch and attempt to negotiate a settlement with them directly.

To specific amount for child support just doesn't sit right with me. At the end of the day, the kid is a child—there’s zero debate that support needs to be paid. Honestly, it’s pretty pathetic that things had to escalate to a court order for a wage garnishment just because the payments weren't being made in the first place.
From what I understand about how things work in the private sector, child support is capped at one-third of your income, not half a paycheck.

Of all the garnishments on a paycheck, child support is satisfied in full first, followed by everything else like loans or other claims.

Lawrence Cruz said:To specific amount for child support just doesn't sit right with me. At the end of the day, the kid is a child—there’s zero debate that support needs to be paid. Honestly, it’s pretty pathetic that things had to escalate to a court order for a wage garnishment just because the payments weren't being made in the first place.
From what I understand about how things work in the private sector, child support is capped at one-third of your income, not half a paycheck.

Maybe he just hasn't been paying for a long time, so now he's paying in installments to cover the back pay.

I think I heard or read somewhere—I can't quite pin down the source—that in these situations, loan payments (in general) shouldn't exceed 1/3 of income. And by "income," they mean what's left AFTER child support is taken out.
So if the salary is $4,400 and child support is $2,000, you're left with $733 as his actual income.
By that logic, the monthly payment should be capped at 1/3 of $733 = $733.33.

As if banks would ever step up and automatically lower rates just because a payment hits a third of someone's income. That might have been a rule when applying for the loan, but if you took out a bad variable-rate mortgage and then your salary gets cut, your payment could end up eating 80 percent of your check. I guess banks don't really care about that.

You’re spot on there. They look at your creditworthiness during the approval process, not on a monthly basis.

On the flip side—they really only care about collections. If someone walks into a bank right now—while their payments are still current—to ask for a lower monthly payment or an extended term, they’ll likely just be told "no." Especially if there's already some kind of administrative hold in place, the bank is going to keep collecting as planned. But once a person actually starts falling behind, suddenly the bank is the one calling them to sit down and "see what can be done." It’s a pretty sad reality.
I get it, I know. Banks aren't exactly non-profit charities—blablabla—but still.

Yeah. I went down to my local Chase branch to see if I could restructure my loan to lower the monthly payments. Just being proactive, since I'm honestly a little worried about my paycheck getting cut. The guy there told me it’s basically a non-starter—unless I actually get laid off, or if my pay drops by more than half, or if I go out on maternity leave.

Makes sense. It would be a totally different story if I were missing payments. If I were behind, they'd probably be tripping over themselves to offer me some "special" restructuring plan at 12-14% interest. 😁