Tuesday, January 8, 2008
Yahoo via the AP is reporting the Countrywide's Stock is getting hammered on rumors that it will declare bancrupcy. This is a stunning reversal for a once booming company that was growing by leaps and bounds only 18-months ago. While companies make their own bed, I do feel for the remaining employees at the company if it happens.
My mortgage isn't at Countrywide, and even if they go under someone will buy the owned Mortgages from them, but it shows how deep this mess is...and I hate to say it, but I was part of the problem.
I bought too big of a house since we really loved it. We were given a big Jumbo ARM loan that was no problem since the property rate were shooting up here in Southern Oregon (not like California, but quick). This is really before we as a family had our heads on right regarding Finance. Wouldn't do it now.
That being said, we are lucky. We can pay our payments and could even if the ARM jumped. We will refinance next year before the ARM is up (hense my FICO goal for the year). But we will not realize the debt reduction we could have if we had stayed more within our means. It really isn't the time to sell given the depressed market, as we could take a bath to get out from it so we will stay and enjoy it, but we will be wiser for it.
So if someone tells you you can live well beyond your means due to 100 years of credit management practices being thrown out of the window, think twice...