His initial goal is to replace his income plus enough to afford his own health insurance.

Is he going through a rough patch right now or can he just not afford this property?

At 7% for a 30-year fixed loan, you can afford to carry about $79K in mortgage.Of course, make sure that your numbers actually support the 50% rule in your area.

I also wonder if you can afford the negative cash flow and the rehab costs while turning this property.

The Fed announced a plan to bail peole out if they are at risk of foreclosure:http://news.yahoo.com/s/nm/20090127/ts_nm/us_usa_fed_foreclosureOf course, if you were responsible and took out a loan that you could afford you are out of luck.

I didnt realize that Realtors referred buyers (who they knew couldnt afford it) to brokers that had appraisers & banks with these underwriter's (who checked for a pulse) and the loans were put into securities.

:lol: We can all get through this, and I still believe that the next generation of millionaires will be made out of this mess, but it is so hard to keep a positive outlook when the government will not allow the free market to take its natural course.Today's events are just frustrating me, and I needed to vent.........LOL

HUD has been sued by the people it sold these affordable homes to!

If Billy can afford this payment, it would be great for him because in five years, his payment would go down to $498.98.

Especially since I'm still no where near affording Bay area real estate.