Page 1 – "I thought I would grow old there"
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Guillermo Galindo is 56 years old today.
With his first wife he came in 1984 from Colombia to the United States. In 1986 he became American
Citizen. In 2005, he bought a house in Revere, Massachusetts, with his second wife
small town by the sea near Boston. It
should be home and workplace at the same time. They got a daughter and lived the American
Dream. Then came the financial crisis.
"A friend had
told me about the house. Walking distance to the sea, big and bright. My two daughters from first marriage could have their own room. And let the upper floor
even rent, there was an additional entrance. That it's at the intersection
was a bother me, but I was told it was anyway
a good deal. It should cost $ 410,000. Five percent of the purchase price
I was able to raise myself, so 20,500 dollars. Wells Fargo lent me that
Rest, almost $ 390,000. It was easy to get the loan. I only had to
Take out insurance on the loan that handles when I am
could not pay anymore. That seemed okay, I did not go any further
in order to. I had been a driver for ten years at the time
a pharmaceutical company and earned about $ 45,000 a year. My
Monthly interest and repayments totaled about $ 2,000. The
seemed feasible. My brother and I immediately started with the
Renovations. We painted all the walls, redecorated bathrooms and kitchen. And me
built a white bridle around the property. He was my pride.
A few months after I bought it
We moved into the house. We were happy, everything seemed to work well.
My wife was always good with children, so we decided to stay in the house
to open a childcare. I built the basement, put mine
Last savings, $ 25,000, in
Renovation, furniture and children's toys. Almost exactly the day ours
small Kita finished, came the first setback. Tagelanger rain flooded the
Basement, cellar. Moisture drew in, with her mold and stench. So I had to
lend another $ 7,000 from a bank that I still do not remember today
remember more. When we finally finished the renovations, let us out
we upstairs to a young family. We opened the child care approximately
half a year after the purchase of the house. The children came, everything went well.
"I lasted another five months, then it was over"
The financial crisis
For many experts, it is considered the worst economic crisis since the Depression of the 1930s: the crisis of 2007 and 2008. It all started in the US mortgage market. The banks had given more and more real estate loans to low-income households. Instead of taking the loan themselves into their books as they used to, they bundled the mortgages and sold certificates to investors. No longer the bank, but the investors now held the default risk. As more and more banks participated, billions flowed into the real estate market. The prices for houses and apartments rose rapidly. However, more and more homeowners came with their rates in default or gave up the payment completely. Investors grew losses.
A climax reached the crisis on 15 September 2008 with the bankruptcy of the investment bank Lehman Brothers. As a result, growth slowed down almost everywhere in the world. Some countries slipped into a deep recession. Government and central banks tried to prevent a collapse of the financial system with enormous rescue and economic stimulus packages.
My boss started in 2008
reduce my work hours by almost 30 percent. I should suddenly 15,000
Earn less dollars a year. The pharmaceutical company divided the sales branch
to another company and dismissed many people. Although I was not quit, but recommended me for the same job with the new
Company to advertise. I applied, but the offer they made to me was
so bad that I could stay with my old employer right away. It
was too little salary, one way or the other. So I left soon afterwards
Pharmaceutical company to help my wife in childcare. Together they could
We look after more children. But then also started
to raise interest rates. Unfortunately, I did not have my interest rate
to be written down. Then our young tenant got marital problems and was vom
Husband sitting with the baby left. Because he did not support her, listened
from one day to the next, to pay rent.