The "Upper-Class" homeless?

[NotUrsula]

I'm not too sure what to think of this, but it's sure interesting. It seems that there are some communities that are creating gated overnight parking lots for fallen-on-hard-times homeless people (some of them still employed) who live in vehicles:

http://www.cnn.com/2008/LIVING/wayoflife/05/19/homeless.mom/index.html

http://abcnews.go.com/Business/Economy/story?id=5534559&page=1

In the second story, the family in question lost their home in Orlando, so they went to Santa Barbara, CA to live there in their RV. The mother is a teacher, but the father is -- get this -- a self-employed "lifestyle coach". Maybe it's just me, but I don't think I'd want to be hiring a lifestyle coach who is homeless. I'm thinking it's time for Dad to be looking for a new profession.

 

[DisneyTN]

That's what gets me. Many of these people are working and putting forth the effort to better their current situation. Now I can understand if somebody is homeless who does not have the will or drive to work or search for employment, or expects everything to be spoon-fed to them.
But many of these people are hard working individuals, and still are unable to afford housing in the United States. The way I see it, anyone who works hard and is loyal to their job/employer should be able to afford a roof over their head. Unfortunaltely, reality isn't quite as kind and hospitable.

It's sad that there is a rising number of "Working Poor" in America. Those two words contradict one another. If you are a hard worker, then you should not be poor. My thoughts & prayers go to these good people. I hope they keep fighting the good fight and giving it their all to climb out of their situation.

 

[sdarwkcabemanmy]

I agree..working and poor are just two words that shouldn't go together, but they do.

I feel fortunate that I am able to be a SAHM, although I have worked in the past with coworkers who were 'working poor'. Mostly they were Latino immigrants who were working several jobs just so they could afford a nice apt or house for their kids.

 

[battricia]

I didn't read the links but I'm sorry, they lost their HOME but kept their RV????? surely selling the RV would have given them at least a few more mortgage payments.


ETA: I read the link and they are 'borrowing' an rv.

 

[DMickey28]

From the second article:

"Raised in the Midwest, she moved to California in the1960s. By 2005, she was earning up to $75,000 a year as a high-end real estate agent and, that year, she invested in a $1.2 million home. She didn't sell her old $780,000 ranch some 30 miles away, figuring it would sell easily. Her plan was to flip the new house in two years and sell it for $3 million."

How does that even make any sense to do that regardless of the market? An 'up to' a $75K salary and buying a $1.2 million home when you already have a $780,000 house. DH has made more than twice that some years and when we buy a house we are looking for less than $300K depending on the location. I just don't get it ... it said further in the article that she was supporting her husband as well so his income did not influence the approval on that much loan.

 

[NotUrsula]

They don't own the RV, it was borrowed from a friend who really didn't want it anymore.

The original plan was apparently to use it to get to California and then sell it for the owner, but they are living in it long-term, instead. The article didn't say what the actual owner of the RV thinks of the current situation

PS: that $75K thing confused several people who posted comments to the story. The general consensus seems to be that it must be a typo, that that there is probably a zero missing from that posted salary, i.e. $750K

 

[Ride Junkie]

In the first article, she said that three-quarters of her income went to paying rent in Santa Barbara, where the median house in the scenic oceanfront city costs more than $1 million. Why not just move somewhere cheaper? You can find an $8 an hour job anywhere.

 

[battricia]

I agree about the 75k thing - must be a typo or SOMETHING because 75k/yr does not = 'high end real estate sales'

 

[sdarwkcabemanmy]

In the first article, she said that three-quarters of her income went to paying rent in Santa Barbara, where the median house in the scenic oceanfront city costs more than $1 million. Why not just move somewhere cheaper? You can find an $8 an hour job anywhere.

Exactly.
Though if she was a 'high end real estate agent' she might not want to stoop so low as to take a minimum wage job to survive.

Heck, when I was working, I would have teenagers come up and ask what our base pay was. I would give them a figure (usually between 6 and 8$/hr DOE) and they'd be like, "Forget it. I need ot make *X*$ per hour or else!". If teenagers, who barely have any experience at all act this way, I can't imagine how a woman who's made some decent money in her life would act.

 

[froglady]

From the second article:

"Raised in the Midwest, she moved to California in the1960s. By 2005, she was earning up to $75,000 a year as a high-end real estate agent and, that year, she invested in a $1.2 million home. She didn't sell her old $780,000 ranch some 30 miles away, figuring it would sell easily. Her plan was to flip the new house in two years and sell it for $3 million."
How does that even make any sense to do that regardless of the market? An 'up to' a $75K salary and buying a $1.2 million home when you already have a $780,000 house. DH has made more than twice that some years and when we buy a house we are looking for less than $300K depending on the location. I just don't get it ... it said further in the article that she was supporting her husband as well so his income did not influence the approval on that much loan.

This woman gambled, and lost. She forgot the most important rule of home buying of my parent's generation: A home is first and foremost a place to live. It should appreciate - over time - but there are no guarantees, especially if you're buying in an overinflated market.

Too many people bought homes that they had no intention of living in permanently, but just to "flip" and make a profit, because they assumed that the value would continue to increase. This woman really thought her second home would double in value in a two years??? And she bought a 1.2 M home on a $75,000 salary? There is no way she could afford that home; even if she was able to pay cash, she still didn't have enough income for taxes, utilities, upkeep, insurance, etc on a place that size.

I really don't have any sympathy for her. If she had lost her home due to a tragedy I would feel differently.

 

[battricia]

ya, I know it's terrible but I find it hard to feel sorry for these people, i mean you've lost your home in florida and you think moving to CALIFORNIA is going to make it better? Especially since his wife is a teacher, she could get a job in most towns, states, etc., and they could live pretty cheaply. I don't know I just don't get it.


And a real estate agent should know better than anyone what she can and cannot afford in a house - not to mention that it's usually not wise to buy a new house before selling the old one.

 

[sdarwkcabemanmy]

I agree.
Maybe she watched one of those houseflipping shows once too often and thought, "Hey I can do that too!"?

 

[NotUrsula]

OK, my thoughts:

On the people profiled:

The realtor: I'm wondering why she doesn't move, too, but then, she's a real estate agent licensed in CA -- where is she going to move to where business is likely to be all that better? Real estate in CA is pretty much busted all over. I think that with that particular lady, she's scared to start over elsewhere because all her professional contacts are there.

The lifestyle coach: Apparently this family is close to getting back on their feet, so I guess they are doing something right, but a lifestyle coach? I'd have been really hard-pressed to stay married to the guy if I had a valid teaching certificate. I think perhaps I would have invited him to pursue his dream on his own for awhile, while I kept my Florida teaching job and a roof of some kind over my kids' heads.

On the parking lot concept:

I've decided that I think it's a good idea, with reservations, at least in REALLY affluent communities with high foreclosure rates. It looks like it gives people some time to try to get back on solid ground, without having to completely uproot themselves on top of the loss of a house. However, if it doesn't work after a certain period of time, then I think it's time to relocate to a more affordable community.

 

[Charade]

From the 2nd paragraph in the first article...

A former loan processor, the 67-year-old mother of three grown children

Why is she living in her car with 3 grown children? Couldn't she stay with one of them?

 

[ChrizJen]

From the 2nd paragraph in the first article...



Why is she living in her car with 3 grown children? Couldn't she stay with one of them?

Further in the article it says that one of her grown children is 19 and living with a friend, and the other 2 are living overseas.

 

[Ride Junkie]

Exactly.
Though if she was a 'high end real estate agent' she might not want to stoop so low as to take a minimum wage job to survive.

The article mentioned that she's working part time for $8 an hour. That $8 an hour will get her a lot more in another part of the state (or better yet, leave CA...it's expensive here!).

 

[arminnie]

In the first article, she said that three-quarters of her income went to paying rent in Santa Barbara, where the median house in the scenic oceanfront city costs more than $1 million. Why not just move somewhere cheaper? You can find an $8 an hour job anywhere.

ya, I know it's terrible but I find it hard to feel sorry for these people, i mean you've lost your home in florida and you think moving to CALIFORNIA is going to make it better? Especially since his wife is a teacher, she could get a job in most towns, states, etc., and they could live pretty cheaply. I don't know I just don't get it.

I don't get it either. Moving to California when you have no money is about the stupidest thing I can think of. It's one of the hardest places to find a place to live even with a good job.

Also the fast food court jobs at the local mall paid at least $9 an hour when I left California almost 7 years ago.

 

[Charade]

Further in the article it says that one of her grown children is 19 and living with a friend, and the other 2 are living overseas.

True but she also said she wouldn't accept help from (and didn't tell her 2 other) children even though she knows they would offer.

 

[Ember]

No criticism from me. Everyone has made poor choices and the people mentioned all seem to be trying to help themselves, they're working and not out begging on the street. I really do think it can happen faster and easier than anyone would think possible, and no one thinks it will happen to them.

I'm glad they seem to have a safe place to rest their heads at night and I wish everyone of them (and others in their situation) all the best. When I was in school I was working 2 jobs, and there were still weeks I ate only potatoes! (A big bag was cheap!)

There but for the grace of God.....