This is a story about a protest organized by the Neighborhood Assistance Corporation of America to pressure execs of Wall Street firms to do more to help homeowners.
However, what caught my attention was one guy at the protest
But there were all kinds of people at this event. And it’s harder to see some of them as victims.
“I was two months out of college, and they gave me $465,000,” says Chris Donohue, a structural engineer who makes about $40,000 a year.
He clearly couldn’t afford the house he bought. He got the loan from IndyMac bank, which collapsed last year after many of its loans went sour.
“Every single other bank in the country told me no — wisely,” Donohue says.
Still, Donohue would like his payments lowered. Deciding where to draw the line on loan workouts will be a challenge for the government going forward.
The guy makes $40,000 and was able to get a loan of $465,000? The guy doesn’t need to have lower payments, he needs to experience a little bankruptcy.
Even if you charged him 0% interest on a 30 year mortgage, you still have a $1300 monthly payment. Add to that property taxes on a $465,000 house, and insurance. That would probably add another $1000/month. If he’s making $40,000, after taxes his take home income would be around $30,000 leaving you a $2500/month. So, his mortgage, even with interest relief would pretty much take up his entire salary.
This Chris Donohue is a structural engineer. I wouldn’t want to be in any building that this fool has worked on.