Monday, December 31, 2007

Johnnie Pitts

Johnnie Pitts, House "Buyer"
Johnnie is right about one thing: miss a house payment or tax bill and you'll find out who really owns your house. Sadly, he was wrong on just about everything else:
- Wrong to pay $460,000 for a shit-hole in Oakland
- Wrong to re-negotiate his loan terms
- Wrong to continue paying for a house that is probably worth less than $200,000
- Wrong to think that "When it comes to renting, it’s just cash in the trash"

He has truly become a slave to this house, and it will sting twice as much when he finally walks away. You've heard the saying, "You'll be priced out forever." Well, I'm coining the new phrase for 2008: If you borrowed for a house over the last few years,...

"If you think your house is all yours, just miss a payment or property tax bill, and you'll find out who it really belongs to," he said. "We're not homeowners; we're renting from the banks and investors."

Does Pitt really want to continue working six days a week to keep a house that is now valued at about $330,000 - $100,000 less than he paid for it? He insists that he does.

"When it comes to renting, it's just cash in the trash," he said. "You can't win no way when you're renting, especially if you're single and in the 35 percent tax bracket. Owning a house is the best thing you can do for yourself. It's worth it to have some stability."
6223 MacArthur Blvd
Oakland, CA 94605

Sale History:
08/23/2005: $460,000
11/01/2000: $60,000
04/01/1998: $115,000


Mahla said...

What the heck?! How does this guy merit a place in the hall of "shame"?! He's living up to his obligations. He's got a plan to work his way out of this mess. He's not bitching and whining or asking for a government handout. Instead, he's trimming the fat from his lifestyle and getting financially educated. America would be a much better place if it were populated with more Johnnie Pitts!

Tyrone said...

I would agree that he is trying to be responsible by meeting his financial obligation, but the problem is that buyers helped inflate this bubble by paying the outrageous prices. He made some poor decisions and ridiculous statements.

The Z-estimate on his house is now $375K, and falling fast. Here is a house For Sale in his neighborhood...
6223 Monadnock Way
Oakland, CA
For Sale: $247K

Sale History:
10/16/2007: $415,000 (bank?)
08/18/2005: $485,000
02/09/2005: $364,000

He should walk away. Far less expensive in the end. Is renting or "owning" throwing money away in this case?