To those pilots who own a house

[BoilerUP]

This thread is a great example of why airline pilots should REALLY base their financial budget off their guarantee and not some higher credit amount.

 

[piav8r]

Oh good, Now I get to pay your mortgage too! If you can afford your home, just pay it. You're the one who bought the house with the mortgage terms, now live with it, or sell it!

If this was directed at me quite frankly KCUF YOU! You have no idea the level of personal hell that I have been through in the past 4 years where I have watched what I personally built, get taken apart by greed from higher up, only to lose over 60% of my income from things that I no longer could control, and then get laid off. At which point I returned to the airlines (hence the 60% loss in pay) To top it off ACE HOLE, I tried to sell my home which thanks to the housing economy failure is now worth half of what I built it for taking into account that I built it myself... that's right myself, read sweat equity you prick.

If it wasn't directed at me, my appologies, and rant off...

 

[jetracer5]

31% net or gross?

31% Gross

 

[FirstMate]

If your like me and own a house and are starting to see your pay checks get even smaller this winter or you are on the street or just got downgraded call the bank you have your loan through and tell them you want Obama to pay for your house through the "Making home affordable plan" You just have to prove you are taking a loss of income. Say going from 90+hrs month to 75hrs or less works. They will force your lender to make your total monthly payment including escrow's no more then 31% of your income. My payment went from 1,785 to $930! This payment is locked in for 5 years. Just thought I would pass this along to help out other pilots Atrying to maximize there income! Sorry for posting usefull infomation! haha

http://makinghomeaffordable.gov/

Why did you buy a home/property that was nearly $2000 a month to begin with when you clearly could not afford it should you have to go back to a minimum guarantee paycheck? Now, the rest of the US taxpayers take the brunt of this - along with medicaid, welfare, and every other easy out program that is out there.

 

[buscap]

Redistribution of money, that's all. Like Spock said, ''The needs of the many...blah blah blah...''

And by the way, the definition of a liberal is either A. one who has never earned a dime or B. someone who has earned or inherited so much, they don't give a crap what the IRS takes!!

 

[Smarta$$]

Redistribution of money, that's all. Like Spock said, ''The needs of the many...blah blah blah...''

And by the way, the definition of a liberal is either A. one who has never earned a dime or B. someone who has earned or inherited so much, they don't give a crap what the IRS takes!!

Idiot.

 

[jetracer5]

Why did you buy a home/property that was nearly $2000 a month to begin with when you clearly could not afford it should you have to go back to a minimum guarantee paycheck? Now, the rest of the US taxpayers take the brunt of this - along with medicaid, welfare, and every other easy out program that is out there.

Because I used to make a lot more money

 

[BoilerUP]

If $930/mo is 31% your income, you make $3000/mo. $1785/mo would equate to $5758/mo @ 31% of income. In post #12 you said you were making $4000/mo, which would have put your house payment at 44.6% your monthly income.

While I don't fault you for taking advantage of a program you're eligible for...you got a gift, at the rest of our expense, because you made a bad financial decision and bought WAY too much house.

This should serve as a prime example to show people the importance of living within their means, and budgeting expenses on GUARANTEED income alone.

 

[n757st]

If $930/mo is 31% your income, you make $3000/mo. $1785/mo would equate to $5758/mo @ 31% of income. In post #12 you said you were making $4000/mo, which would have put your house payment at 44.6% your monthly income.

While I don't fault you for taking advantage of a program you're eligible for...you got a gift, at the rest of our expense, because you made a bad financial decision and bought WAY too much house.

This should serve as a prime example to show people the importance of living within their means, and budgeting expenses on GUARANTEED income alone.

What about people at an airline like comair that were captains for 5+ years and downgraded to FO at guarantee wages? Should they have planned for 30% of their airline to vaporize and for themselves after 5+ years as a regional captain to be forced to FO pay? I was a bottom captain at the same airline that you used to work for and I knew not to go beyond my means, and as such when I was downgraded the pain was not as extreme, but had I been a captain for multiple years I would not have thought twice about basing my income on guarantee captain pay. BTW, normal captain pay (read 90 hours) to guarantee FO pay at your formal airline is a 3000 dollar a month AFTER TAXES hit.

 

[Beaver79]

If your like me and own a house and are starting to see your pay checks get even smaller this winter or you are on the street or just got downgraded call the bank you have your loan through and tell them you want Obama to pay for your house through the "Making home affordable plan" You just have to prove you are taking a loss of income. Say going from 90+hrs month to 75hrs or less works. They will force your lender to make your total monthly payment including escrow's no more then 31% of your income. My payment went from 1,785 to $930! This payment is locked in for 5 years. Just thought I would pass this along to help out other pilots trying to maximize there income! Sorry for posting usefull infomation! haha

http://makinghomeaffordable.gov/

Great, I"m paying your mortgage too! I thought I only purchased my house, but instead I'm paying for thousands of other homes.

 

[BoilerUP]

A downgrade is a vastly different situation than the one the OP told us about. If one's mortgage is inline with generally-accepted lending ratios (less than 31-33% of monthly income) and through no fault of their own suddenly is making 60% less via a downgrade, that to me is a tangible hardship because your pay *was* cut via a loss of position.

On the other hand, I can't feel any sympathy for somebody who based their monthly budget on "normal" credits and starts crying broke when that credit gets reduced to min guarantee (assuming they didn't lose their position).

The OP has offered us figures that show his mortgage was already nearly 45% of his income before his pay was "cut" due to a loss in credit hours...which any financial adviser or website will tell you means you are "house poor". By any metric he was already in a bad way financially before his pay was "cut"...losing credits just exacerbated the situation.

Call me conservative, but when I was at ARW I always based my monthly budget on my guaranteed income only, and I considered any extra pay above guarantee to be a bonus, putting it into savings, paying off student loan debt, or making "special" expenditures. Now my wife and I get paid every 2 weeks (opposing weeks), meaning we base our budget for budget for 2 checks each per month...even though we'll each get an extra check two months in the year. Those "extra" paychecks are still considered a bonus, used for savings/debt payments/special purchases.

Like I said, I don't fault anybody for taking advantage of a program they're entitled to...but basing one's budget off any amount higher than you're guaranteed to earn, to me, is a prime example of poor fiscal judgement.

Financial responsibility isn't hard...it just requires a LOT of discipline.

 

[MJ42]

Because I used to make a lot more money

That's a dumb statement. Everyone should know that what you make now may not be what you make a year from now. This business is so cyclical, how can you justify the biggest purchase of your life knowing this industry can change in an instant? You are never really safe, why do people see that extra money(from an upgrade, etc...) and immediately think they can afford a new lifestyle? The more money that comes in means the more you can spend, right? Live within your means, not within what you can afford at the moment!

I never anticipated getting furloughed in Sept 01, yet afterwards I never missed a payment on anything and still have perfect credit now. Why??? Because I lived(and currently live)within my means.

 

[Quimby]

That's a dumb statement. Everyone should know that what you make now may not be what you make a year from now. This business is so cyclical, how can you justify the biggest purchase of your life knowing this industry can change in an instant? You are never really safe, why do people see that extra money(from an upgrade, etc...) and immediately think they can afford a new lifestyle? The more money that comes in means the more you can spend, right? Live within your means, not within what you can afford at the moment!

I never anticipated getting furloughed in Sept 01, yet afterwards I never missed a payment on anything and still have perfect credit now. Why??? Because I lived(and currently live)within my means.

But that's not the American way!

carry on.

 

[ultrarunner]

Redistribution of money, that's all. Like Spock said, ''The needs of the many...blah blah blah...''

And by the way, the definition of a liberal is either A. one who has never earned a dime or B. someone who has earned or inherited so much, they don't give a crap what the IRS takes!!

'Aint that the friggin truth!

Redistribute this:

FU

We're in this big mess because of people that actually BELIEVE they can afford to spend 30 percent of their GROSS on a mortage...Banks making idiots believe that, and a number of other factors, like Ohhhh...I GOTTA have my "captains house". I actually know someone that said he might not ever be able to afford one of those after he took a hit because his airline was in BK. And yes, he actually referred to the house by that name...can you friggin believe that!? Anyway....

Another buddy told me that when he joined his airline as a new-hire, that airlines credit union would loan new hires money based on their FUTURE pay scales a couple years down the road....can you say stuuuupid!

Ok..rant over!

If anything, a frigging redistribution of common-fukkingggg-sense is in order....

But you can't fix stupid, as they say.

 

[JumpersAway]

If a pilot were to live within their means, they shouldn't ever buy a house- the industry is just too shaky, and too unstable.............everyone's neck is on the chopping block at some point in time.

Here's a thought for the tools that think they are paying for someone other pilot's mortgage- maybe they are collecting what they've paid in, through taxes, themselves. I've paid enough tax that when it's time to dip into the pot, I'm gonna do it. I paid for it, so I'm gettin' my money's worth- especially since I've worked for it to collect it, where as some clown is getting it from laying on her back makin' babies..........