Wednesday, December 10, 2008
Fantasia's Forclosure: Recession or Bad Habits?
Word on the streets is that Fantasia Burrino has foreclosed on "one" of her homes (the million dollar one in North Carolina). Allegedly, the signs are up and the home will be auctioned off soon. I'm a little confused about something: how did she owe $58,000 of taxes with $1 Million home? I'm no financial expert, but why on earth would you purchase a large home with NO money and a crap load of debt?!?! Come on Fantasia! First, I'm mad about the cost of living crisis here. What happened to the good old days when you purchased a home with cash--and it was yours to keep (with no mortgage)? I do realize that there are numerous social and economic factors that have contributed to this housing foolishness--but people should be a tad bit smarter. Even when you buy a home--it's not YOURS if you are still paying on it. The bank owns it! So besides the extra space and the "tax breaks" that you get from owning--you are essentially renting it. Well--I guess it helps to build credit--the same credit that could potentially ruin your financial stability if you make one slip up. Nevertheless, I hope Fantasia learned a simple and valuable lesson: don't get what you can't afford. If you're not making over $1 million a year, why buy multiple homes for that price? Sounds like lack of knowledge, terrible financial advising and bad habits to me...
With the economy in a wreck, everyone seems to be taking a hit. People are losing jobs, homes, retirement funds and their patience. The good thing about a suffering economy is that it forces people to become humble and appreciate each others as opposed to material goods. How much of this are we to blame though? Really--we all had a part in this whole big mess (although everyone is quick to blame everyone else for their financial troubles). When it boils down to it, the only person responsible for your bank account is YOU. Granted, there is a class division--but I've always believed in "working with what you got." If you can only afford a trailer park home as opposed to a luxury mansion, enjoy the heck out of your trailer! Work towards that mansion...but appreciate what you have. Above all, live within your means.
P.S. I love Fantasia's music--and I really wish her well with her financial troubles. Like everything else that is cyclical, this soon shall pass and people will be on their feet again.