Sunday, September 13, 2009

Know your motivator
Ron Nash is not someone who's shy about pushing to get what he wants; he's a motivational speaker, headhunter and author of "How to Find Your Dream Job; Even in a Recession."

The lender offered an extremely low rate, 2.8%, which sounded great. The problem was the value of his property has dropped from $840,000 to about $620,000 and the lender would do nothing to reduce the mortgage balance. Nash believed he would be upside-down on his mortgage, owing more than the house was worth, for years.

CNN has multiple posts on this motivational speaker. They also have a few incorrect facts. The home in question was purchased in 2000 for $398K and then refinanced until Mr Nash owed $840K. Even without adjusting for if this home had been purchased and paid for the "traditional' way, Mr Nash still removed approximately $60K post tax per year from this home. Once again this is equivalent to adding a pre tax six figure job to his family income. I doubt his motivational speaking pays $100K annually.

Mr Nash comes off as a wonderful guy. He continuously borrowed money from his home and then went to the press and claimed it was unacceptable that he should need to pay back the money at a 2.8% APR.

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