SAN CLEMENTE, Calif. (CNNMoney.com) -- Kent and Mysti Cope met and fell in love working for one of the nation's top subprime lenders. Now, their life has been turned upside down after the sudden implosion of the subprime mortgage industry.No I double checked this was not an Onion article.
But since they were high flying mortgage brokers making $200Kish a year each, they were prudent and put some $$ aside for just this kind of situation right? And they didn't go crazy spending on useless shit or a vastly inflated house right?
Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month.
Their home equity line, mortgage, health and life insurance premiums alone cost about $10,000 a month. Still, they are trying to hang onto what they call their dream home with a view of the Pacific Ocean where they live with Mysti's 11-year old son.
Kent estimates the mountainside home in San Clemente, Calif., which they bought in 2005, is worth 20% less than it was a year ago. And in the current market, he said he's not sure he could sell it for even that amount.So if he estimates 20%, it's really about 30% and falling like a rock. If anyone on the planet should have known better than to buy a house in 2005 it was a mortgage broker. But no, he bought at the absolute peak of the market in California. Insurance is maybe $1000 a month for the whole family. So that means they spend $9000 a month on their mortgage. $9000 a month. I can't begin to fathom that. I am willing to bet anything they could rent that house for under $4000 a month.
And yet the MSM once again portrays them as victims in need of Obamaesque bailouts.
The Copes are just two of many in Orange County, formerly the center of the nation's subprime lending industry, now trying to move on. Nearly 9,000 jobs have been lost there in the past year, with more than 4,000 alone in Irvine, where New Century was based.And those jobs ain't never coming back. And that is a good thing. These people were nothing but middlemen. They provided no service other than paper shuffling. The need for a mortgage broker went away long ago, as did the need for a stock broker and a travel agent. Sure there are still a few around here and there, but they are the exception to the rule. Mortgage brokers along with realtors will go the same route.
Get used to it Kent and Mysti. Your glory days are well behind you. Had you been smart you would have stuffed every dime you made into the proverbial bank. You could walk away now with seven figures and never looked back. Instead you took the greedy, gotta have the oceanfront house, the luxury cars, the Fiji trips all financed by a HELOC route. Kent is 60 years old and has a $9000 a month mortgage with no income and spent savings. If t hat is not the definition of moron, I don't know what is.
They were stupid. They were greedy. And they deserve the years of pain that is coming down the road. Mysti is easy on the eyes. If she really wants to keep that 'dream house' of hers there is always the strip club by the airport route.