You are a 62 year old baby boomer and buy a home in 2006 for $385,000 and today it is worth $200,000. Your payments are now $2,333 per month (principal & interest) and probably $500 per month in taxes and insurance or a $2,833 house payment. The following table shows the disparity:
| Year | Home Value | Homeowner Age |
| 2007 | 385,000 | 62 |
| 2008 | 300,000 | 63 |
| 2009 | 225,000 | 64 |
| 2010 | 200,000 | 65 |
| 2011 | 210,000 | 66 |
| 2012 | 220,500 | 67 |
| 2013 | 231,525 | 68 |
| 2014 | 243,101 | 69 |
| 2015 | 255,256 | 70 |
| 2016 | 268,019 | 71 |
| 2017 | 281,420 | 72 |
| 2018 | 295,491 | 73 |
| 2019 | 310,266 | 74 |
| 2020 | 325,779 | 75 |
| 2021 | 342,068 | 76 |
| 2022 | 359,171 | 77 |
| 2023 | 377,130 | 78 |
| 2024 | 395,986 | 79 |
| 2025 | 415,786 | 80 |
| 2026 | 436,575 | 81 |
| 2027 | 458,404 | 82 |
| 2028 | 481,324 | 83 |
| 2029 | 505,390 | 84 |
| 2030 | 530,660 | 85 |
(Assume a 5% annual increase in house value from 2010)
You will be 79 years old before your house is possibly back to its original value… if all goes well. On the other hand, if someone else bought your house at its current value, their mortgage loan would be almost $900 per month less than your payment. With rising healthcare cost for a baby boomer and the stress of a house payment of this size, expect defaults to continue to rise. You are 14 years from a breakeven on the original cost of the house.
See: http://www.latimes.com/business/la-fi-walkaway17-2010mar17,0,2149033,full.story
The ego is a dangerous thing. So is mass delusion. We all saw it happening but greed prevailed at all levels. People who thought they were “entitled” to a higher standard of living without the resources to pay for it were duped by Wall Street into thinking they could afford this new standard of living. Wall Street bonuses were more important than understanding the underlying worthlessness of the instruments they were peddling. What a tangled web!
Our Heavenly Father knows best. If you are going to purchase sizeable assets such as houses and cars, ask Our Heavenly Father and don’t buy until you hear from HIM. If you can’t hear him, it’s simple… don’t buy. Isn’t it more important that you buy the right house or car than to buy the wrong one and live with the consequences?
“I can’t hear THE LORD.” Well, seek and ye shall find. Don’t think that a 30 minute quiet time is the essence of seeking. Study, meditate, ponder, immerse yourself in the Word of GOD and be “baptized” in HIS Word. HE created you and will honor your intent. Your ego will fight you on this, expect it. Your mind is suppose to be your servant, put it where it belongs. Let your spirit take the lead for once and for all. When this happens, you won’t be one of those in the “default” category.