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Cynthia Stafford's Home In Foreclosure and Bentley For Sale

Topic closed. 142 replies. Last post 4 months ago by helpmewin.

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mjwinsmith's avatar - moon

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Posted: July 4, 2016, 2:03 pm - IP Logged

BTW, a $3 Million dollar home is considered inexpensive in California [CHEAP actually] !!!  This is a starter home for most "lower class wealthy people".  By "lower class", I mean those at the bottom of the wealth totem pole. By California standards, "wealth" or "comfort" starts at $1 Million [lower] and goes upward +++.

I lived in California for 10 years.

Anything beneath $1M is still "Middle Class". 

You can still be comfortable enough living in a middle class $800,000 home.

Perhaps Ms. Stafford should have purchased a middle class home for Cash, with NO mortgage.

And how many people take out mortgages as appose to paying cash up front?

"Don't be a Dummy, Make 'Dat Money"

Mjwinsmith's Blog Page:   http://blogs.lotterypost.com/mjwinsmith/

"How to Play My Pick-4 System": https://www.lotterypost.com/thread/306450

    realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

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    Posted: July 4, 2016, 2:10 pm - IP Logged

    And how many people take out mortgages as appose to paying cash up front?

    Yes, a large part of society does take out a mortgage to buy a home.  However, it is dependent upon one's financial circumstance.  If I had $112 million (as in Cynthia's case) from a lottery win I might not hesitate at all to plunk down $1 million cash to pay for a house.

      I'm feeling a jackpot win coming my way!

      mjwinsmith's avatar - moon

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      Posted: July 4, 2016, 2:12 pm - IP Logged

      No one who wins $112 Million in a lottery should be taking out a mortgage on a $3 Million dollar home !!!  Duh !!!  Dead

      My original comment had nothing whatsoever to do with  Middle Class Americans, a perceived housing crisis in America or building up assets in some manner.  In my opinion, unnecessary mortgages are NOT a good or wise investment !!!

      Cynthia Stafford was elevated from "middle class" to "wealthy class", when she won $112M, however she did not remain in her new socio-economic status for very long, b/c her mind set for managing money apparently did not change.

      A perceived housing crisis, where have you been, the housing crisis almost took down the American economy, google it!

      "Don't be a Dummy, Make 'Dat Money"

      Mjwinsmith's Blog Page:   http://blogs.lotterypost.com/mjwinsmith/

      "How to Play My Pick-4 System": https://www.lotterypost.com/thread/306450

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        Posted: July 4, 2016, 2:14 pm - IP Logged

        A perceived housing crisis, where have you been, the housing crisis almost took down the American economy, google it!

        It doesn't matter !!!  I'm not talking about a housing crisis !!!

          realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

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          Posted: July 4, 2016, 2:20 pm - IP Logged

          A perceived housing crisis, where have you been, the housing crisis almost took down the American economy, google it!

          I lived it and worked it for 20 years.  First it was not perceived, second it occurred due to a manipulated run-up in housing prices fueled by government backed no doc mortgages.   Third, though it did seriously dent the American economy, it in no way "almost took it down".  And, again, this has NOTHING to do with Cynthia and her $112 million lottery win and HER mortgage specifically, as was being discussed.  Google it!

            I'm feeling a jackpot win coming my way!

            Drenick1's avatar - villiarna
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            Posted: July 4, 2016, 2:32 pm - IP Logged

            And how many people take out mortgages as appose to paying cash up front?

            I have seen publications stating that almost 40% of ALL home sales in 2014/2015 were cash buyers. The number of cash buyers for multi milion dollar homes was considerable more than that. Properties over $50 million are usually all cash deals.

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              Posted: July 4, 2016, 3:58 pm - IP Logged

              I suspect that Ms. Stafford only took out a mortgage when money got tight.  IOW, she paid cash for her home and then later mortgaged it. 

                mjwinsmith's avatar - moon

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                Posted: July 4, 2016, 5:05 pm - IP Logged

                I lived it and worked it for 20 years.  First it was not perceived, second it occurred due to a manipulated run-up in housing prices fueled by government backed no doc mortgages.   Third, though it did seriously dent the American economy, it in no way "almost took it down".  And, again, this has NOTHING to do with Cynthia and her $112 million lottery win and HER mortgage specifically, as was being discussed.  Google it!

                2008 financial crisis

                (Collapse/bailout phase): September/October 2008

                What the Fed did

                • On Sept. 8, 2008, the U.S. Treasury seized control of mortgage giants Fannie Mae and Freddie Mac and pledged a $200 billion cash injection to help the companies cope with mortgage default losses.
                • About a week later the government bailed out American International Group Inc., or AIG, with $85 billion.
                • The Fed refused to save Lehman Brothers and the company was forced to file for bankruptcy. Some of the largest financial institutions were on the verge of collapse as the mortgage market melted down. As the crisis hit the global market, the credit freeze spread.
                • The Treasury and the Federal Reserve began working on a $700 billion bailout plan.
                • President George W. Bush signed the bailout plan into law Oct. 3. 
                • Weeks later, on Oct. 29, the Fed cut the key interest rate to 1%.

                What was expected

                The government claimed the bailout was necessary to provide stability in the economy and prevent disruption in the financial system. The interest rate cut aimed to revive the economy, help free up credit and make loans cheaper to consumers and businesses.

                What happened

                The financial markets remained in turmoil for several months. Credit remains tight to this day, although it loosened significantly compared to when lending nearly came to a halt during the collapse period. Mortgage rates fell significantly after the interest rate cut and amid expectations that the Fed would start buying mortgage-backed securities.

                "Don't be a Dummy, Make 'Dat Money"

                Mjwinsmith's Blog Page:   http://blogs.lotterypost.com/mjwinsmith/

                "How to Play My Pick-4 System": https://www.lotterypost.com/thread/306450

                  Drenick1's avatar - villiarna
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                  Posted: July 4, 2016, 5:10 pm - IP Logged

                  I suspect that Ms. Stafford only took out a mortgage when money got tight.  IOW, she paid cash for her home and then later mortgaged it. 

                  I believe you are right as I vaguely remember she only took out a mortgage after her finances began to dwindle.

                    realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

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                    Posted: July 4, 2016, 5:20 pm - IP Logged
                    2008 financial crisis

                    (Collapse/bailout phase): September/October 2008

                    What the Fed did

                    • On Sept. 8, 2008, the U.S. Treasury seized control of mortgage giants Fannie Mae and Freddie Mac and pledged a $200 billion cash injection to help the companies cope with mortgage default losses.
                    • About a week later the government bailed out American International Group Inc., or AIG, with $85 billion.
                    • The Fed refused to save Lehman Brothers and the company was forced to file for bankruptcy. Some of the largest financial institutions were on the verge of collapse as the mortgage market melted down. As the crisis hit the global market, the credit freeze spread.
                    • The Treasury and the Federal Reserve began working on a $700 billion bailout plan.
                    • President George W. Bush signed the bailout plan into law Oct. 3. 
                    • Weeks later, on Oct. 29, the Fed cut the key interest rate to 1%.

                    What was expected

                    The government claimed the bailout was necessary to provide stability in the economy and prevent disruption in the financial system. The interest rate cut aimed to revive the economy, help free up credit and make loans cheaper to consumers and businesses.

                    What happened

                    The financial markets remained in turmoil for several months. Credit remains tight to this day, although it loosened significantly compared to when lending nearly came to a halt during the collapse period. Mortgage rates fell significantly after the interest rate cut and amid expectations that the Fed would start buying mortgage-backed securities.

                    The government claimed the bailout was necessary to provide stability in the economy and prevent disruption in the financial system. 

                    As I acknowledged, however this is a far cry from "the housing crisis almost took down the American economy".

                      I'm feeling a jackpot win coming my way!

                      mjwinsmith's avatar - moon

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                      Posted: July 4, 2016, 5:32 pm - IP Logged

                      The government claimed the bailout was necessary to provide stability in the economy and prevent disruption in the financial system. 

                      As I acknowledged, however this is a far cry from "the housing crisis almost took down the American economy".

                      Financial crisis of 2007–08

                      From Wikipedia, the free encyclopedia
                      This article is about the financial crisis that peaked in 2008. For the global recession triggered by the financial crisis, see Great Recession.
                      World map showing real GDP growth rates for 2009. (Countries in brown were in recession.)
                      The financial crisis of 2007–08, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.[1][2][3][4]

                      It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the Great Recessionof 2008–2012 and contributing to the European sovereign-debt crisis.[5][6] The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".[7]

                      The bursting of the U.S. (United States) housing bubble, which peaked in 2004,[8] caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.[9][10] The financial crisis was triggered by a complex interplay of policies that encouraged home ownership, providing easier access to loans for subprime borrowers, overvaluation of bundled subprime mortgages based on the theory that housing prices would continue to escalate, questionable trading practices on behalf of both buyers and sellers, compensation structures that prioritize short-term deal flow over long-term value creation, and a lack of adequate capital holdings from banks and insurance companies to back the financial commitments they were making.[11][12][13][14] Questions regarding bank solvency, declines in credit availability and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during 2008 and early 2009. Economies worldwide slowed during this period, as credit tightened and international trade declined.[15] Governments and central banksresponded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts.[16] In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009.

                      Many causes for the financial crisis have been suggested, with varying weight assigned by experts.[17] The U.S. Senate's Levin–Coburn Report concluded that the crisis was the result of "high risk, complex financial products; undisclosed conflicts of interest; the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street."[18] The Financial Crisis Inquiry Commission concluded that the financial crisis was avoidable and was caused by "widespread failures in financial regulation and supervision", "dramatic failures of corporate governance and risk management at many systemically importantfinancial institutions", "a combination of excessive borrowing, risky investments, and lack of transparency" by financial institutions, ill preparation and inconsistent action by government that "added to the uncertainty and panic", a "systemic breakdown in accountability and ethics", "collapsing mortgage-lending standards and the mortgage securitization pipeline", deregulation of over-the-counter derivatives, especially credit default swaps, and "the failures of credit rating agencies" to correctly price risk.[19] The 1999 repeal of the Glass-Steagall Act effectively removed the separation between investment banks and depository banks in the United States.[20] Critics argued that credit rating agencies and investors failed to accurately price the risk involved with mortgage-related financial products, and that governments did not adjust their regulatory practices to address 21st-century financial markets.[21] Research into the causes of the financial crisis has also focused on the role of interest rate spreads.[22]

                      In the immediate aftermath of the financial crisis palliative monetary and fiscal policies were adopted to lessen the shock to the economy.[23] The Dodd–Frank regulatory reforms were enacted in the U.S. to lessen the chance of a recurrence,[24] and the Basel III capital and liquidity standards were adopted by countries around the world.[25]

                       

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                      "Don't be a Dummy, Make 'Dat Money"

                      Mjwinsmith's Blog Page:   http://blogs.lotterypost.com/mjwinsmith/

                      "How to Play My Pick-4 System": https://www.lotterypost.com/thread/306450

                        realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

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                        Posted: July 4, 2016, 6:27 pm - IP Logged

                        As I acknowledged, however this is a far cry from "the housing crisis almost took down the American economy".

                        Recessionary, yes.  Decline and downturn to the economic economy, yes.  A complete devastation and downfall of the American economy, not by far.

                          I'm feeling a jackpot win coming my way!

                          helpmewin's avatar - dandy
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                          Posted: July 6, 2016, 3:57 pm - IP Logged

                          Who's surprised? Her con artist personal trainer, ex-husband wanted a Bugatti as a wedding gift. They were looking at private planes. Also, trying to buy her way into Hollywood. Yet you are making mortgage payments? Let this be a cautionary tale.

                          I Agree! some people have to learn the hard ways.

                          Let it Snow Snowman

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                            Posted: July 6, 2016, 4:19 pm - IP Logged

                            Some people will never learn.  So there will be more Cynthia Stafford's.

                              helpmewin's avatar - dandy
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                              Posted: July 7, 2016, 3:07 pm - IP Logged

                              Some people will never learn.  So there will be more Cynthia Stafford's.

                              I suppose your right bigbear29, There are no do over in Life and i don't believe in second chances.No Nod

                              Let it Snow Snowman

                                 
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