Monday, December 10, 2007

John and Grayce Coffman

John and Grayce Coffman, Retirees / Home-ATM Users
How can you take $600K out of your home in your 60s, spend it all, and have nothing to show for it? This money is probably sitting somewhere safely waiting for them. Leave it to the OC Register to save this "poor" family. This couple cashed out big-time! But this is also a great example of how easy it was for ANYBODY to get cash without having ANY ability to pay it back--they were RETIRED for god's sake!!

Tapped-out family's home is at risk
“John and Grayce Coffman could lose the Fullerton home they bought in 1977 because they can’t keep up with their mortgage’s rising costs. The Coffmans, who are unemployed and in their 60s, borrowed $552,300 from Countrywide Financial, the largest U.S. home lender, in the summer of 2005. Despite making about $50,000 in payments since then, they now owe more than $590,000 to Countrywide.”

“The Coffmans admit responsibility for getting deep into debt. They bought their two-story home for $97,000 in 1977 and have since extracted all the equity gain in it. They’ve cashed out $600,000 in home equity with the help of several lenders.”

But Grayce, where did the money go?????
“‘I can’t tell you,’ Grayce Coffman said. ‘We just made some really bad decisions.’”

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