Even North Jersey wealthy hit by foreclosures
Sunday, December 1, 2013 Last updated: Sunday December 1, 2013, 3:29 PM
BY KATHLEEN LYNN
STAFF WRITER
The Record
Nine years after spending millions to build their dream home in Franklin Lakes, Kevin and Cheri Schmidt lost it recently to foreclosure.
The Schmidts have sued their bank, saying it’s to blame for their trouble. The bank declined to comment, saying it doesn’t discuss pending litigation.
Although foreclosures mostly affect lower- and middle-income households, the Schmidts’ story shows that families in upscale towns have also felt the pain of losing a home as the economy and housing market cratered. A check of upcoming foreclosure auctions in Bergen County found properties in Saddle River, Old Tappan and Ridgewood, among other more affluent towns.
According to RealtyTrac, a California company that tracks the foreclosure market, about 4 percent of Bergen County’s current foreclosure cases involve properties valued at over $1 million.
– See more at: https://www.northjersey.com/realestate/233965691_Even_wealthy_hit_by_foreclosures.html#sthash.Qs2PJXtf.dpuf
To summarize, a guy sells an idea for $5m: good!
Guy blows all the after tax profit on a new home for him and his family: Ummm….maybe scale that back and keep a little in reserve?
Guy borrows against said house: Bad!
Sorry buddy. Bad financial planning. I’ve never had a $5m idea, but there is very little chance that I will lose my home, because I own it and will not borrow against it.
I read the article too. They made bad business decisions and bought a too expensive house. That is what the crash was all about. They were over leveraged.
The man is 63 years old and can’t remember the crash of the 80’s? When will people learn to live within their means? If a windfall comes your way, like 5 million dollars, live modestly and save for a rainy day.
They should have to pay the banks legal fees when they lose. Otherwise the rest of us are indirectly footing the bill.
That’s precisely the kind of person I’ve always imagined in those hideous, pretentious Franklin Lakes McMansions that are destroying that town.