Saturday, November 10, 2007

Marshall Whittey

Marshall Whittey, Buyer/Home-ATM Spender
It must be 'buyers week' for the Hall of Shame; here's another one. Marshall Whittey is your typical homeowner that used their home like an ATM, spending far beyond his means. Extravagent wedding, Tahitian honeymoon, dining, flat screen TVs (a must-have for home-ATM spenders), a boat, a new truck (didn't like the color of the old one), shopping sprees, and an "investment" property--all of this on the salary of a sales manager at a flooring and tile company. Marshall is not very different from other home-ATM users, he's just stupid enough to be featured in a NY Times article. Bravo, jackass.
* Check out that flat screen TV financed through his home.

Homeowners Feel the Pinch of Lost Equity (and can no longer tap their ATM--home)
RENO, Nev., Nov. 5 — As his wedding day approached last spring, Marshall Whittey found that his money could not keep pace with the grandiosity of his plans. But rather than scale back, he chose instead, like millions of homeowners across the country, to borrow against the soaring value of his home.

He and his bride, Holly Whittey, exchanged vows on the grounds of a sumptuous private estate in the Napa Valley. They spent their honeymoon at a resort in Tahiti. “It used to be that if I wanted it, I’d just go and buy it and finance it,” Mr. Whittey, 33, said. “I’m feeling the crunch, and my spending is down significantly.”

Mr. Whittey once seemed an unlikely member of that cohort. A sales manager at a flooring and tile company, he exudes the unflappable air of someone raised amid the easy money of the casino world. Until recently, he and his wife regularly embarked on shopping sprees of $1,000 and up. He bought a 21-foot boat and two flat-screen televisions for their home. He sold his old truck and bought a new one, he said, “just ’cause I didn’t like the color.” Mr. Whittey could live in such fashion because his company was making good money and his house was appreciating.

But today, the value of his own home, which reached $500,000, has fallen and a separate investment property he bought seems likely to fetch far less than the $580,000 he owes the bank. His commissions have diminished, so his income is down. His neighbor recently fell behind on house payments, prompting the bank to foreclose. Anxiety reigns. “We used to go out to eat three or four nights a week,” Mr. Whittey said. “Now, we don’t go out at all.”
Property information:
404 Alysheba Ct, Reno, NV 89521-6274
-- 2005-06-08: purchase $283,900 with Universal American Mortgage
-- 2006-03-01: $30,000 HELOC with Countrywide
-- 2006-11-20: $375,000 REFI with First Magnus

Demos Ct, Reno, NV 89512
-- 2006-01-03: $444,000 ARM with CTX mortgage
-- 2006-01-03: $111,000 2nd with CTX mortgage
The assessment is for $200,000; don't understand the $555K loan.

3504 Herons Cir, Reno, NV, 89502
1998-10-09: purchased $136,000
2004-10-18: sold.......... $275,000

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