Jayco49 at VREAA 17 May 2011 11:15am – “I know a girl first hand and I obviously don’t know precise numbers, but pretty darn close…She owns a 2 bedroom condo in Surrey (35 year mortgage and can’t sell for less than 380k to break even). The current renter only covers roughly 75% of her carrying costs for the place…she subsidizes the rest and she technically doesn’t have strata clearance to have renters and can’t currently get that clearance. Also, last summer she bought a new house in Surrey with carriage house over garage (35 year mortgage). She faked a car loan (worked in the car sales business for shady car dealer) to borrow 50k to come up with the down payment for Surrey home ($498,000 was purchase price) and never used that money to buy a car. She has a car payment (on top of her faked car payment), a motorcycle payment, has borrowed 10k from old employer to cover mortgage payments a few times and just got an home equity loan for 20k to pay off credit card (10k plus) and finish a kitchen downstairs so she can suite the basement…problem is she has less than 5k left on loan and hasn’t even started kitchen install..she’s now afraid she’s out of money to finish the job. She rents out carriage house, and has two roomates helping her with mortgage. She is sinking deeper and deeper in debt and it’s only a matter for time before her access to credit dries up and looses it all, but here’s the kicker…she is currently working for 38k a year plus commissions which bring her to 50k max if she’s lucky AND she was looking for friends who might be interested in going in with her on buying a 3rd house!!! She’s so f*****d and doesn’t even recognize it yet. I don’t understand how someone can borrow so much while earning so little…she’s close to 900k in debt and thinks she is getting rich!!”
For update, see here.