Skip to comments.Foreclosure limbo: Staying without paying.
Posted on 06/09/2011 11:10:52 AM PDT by Scythian
MODERATOR, I OPENED THIS UNDER CHIT CHAT AND WANT MY TITLE, THIS IS NOT A NEWS STORY POSTING
Charles and Jill Segal have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home.
Lynn, from St. Petersburg, Fla., has been living without paying for three years.
In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home.
They're not alone.
Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years.
I FEEL LIKE A COMPLETE IDIOT, I ALWAYS PAY MY MORTGAGE ONTIME AND HAVE EXCELLENT CREDIT. HOWEVER, THE ECONOMY IS GOING TO EVENTUALLY CRASH AND WE'LL ALL LOSE OUR HOMES, SO I CANNOT FIGURE OUT WHY I AM PAYING RATHER THAN JUST STOP PAYING AND SAVING THE MONEY?
I GUESS BECAUSE MORALLY I COULDN'T DO THAT, AND I MADE SURE I COULD AFFORD MY HOUSE, AND I GOT A FIXED RATE MORTGAGE RATHER THAN GAMBLE THAT I WOULD EVENTUALLY BE ABLE TO AFFORD IT LIKE THE REST OF THESE LOSERS. I'M PISSED.
(Excerpt) Read more at finance.yahoo.com ...
Is it really necessary to USE ALL CAPS?
A deal is a deal. Pay your obligations.
I FEEL LIKE A COMPLETE IDIOT, I ALWAYS PAY MY MORTGAGE ONTIME AND HAVE EXCELLENT CREDIT. HOWEVER, THE ECONOMY IS GOING TO EVENTUALLY CRASH AND WE’LL ALL LOSE OUR HOMES, SO I CANNOT FIGURE OUT WHY I AM PAYING RATHER THAN JUST STOP PAYING AND SAVING THE MONEY?
You gotta wonder. Do these deadbeats get to escape any accrued interest on the unpaid balance?
There are trade-offs. Yes they live rent-free for a time, but then their credit is killed. A foreclosure on your record can be worse than a bankruptcy on your credit report.
People walking away has made the housing foreclosure problem much worse. Anecdotal evidence is that some who could afford to pay just decided not to. Not every foreclosure is a story of job loss and illness draining savings and all that.
That means ANGER, so yes, I had to.
They should evict the people, bull doze the homes which should have never been built, now, our homes are going to be absolutely worthless. We haven’t seen 20% of the drop that is coming in home values yet.
Why would you feel like an idiot for not being a loser/welcher?
We’re not “all going to lose our homes” either. It isn’t as if we’ll have 330 million people wandering the streets.
Why? You will still own your house after 5 years. People taking the gamble on non payment will not and I rather doubt they will be living well after that. I think that is just an impression people have of the freeloaders. They will get theirs down the road.
If they were going to bail out the banks, they should have just bailed out individual home owners. Yes it sucks that they get rewarded for bad behavior, but at least it keeps home values up for the rest of the market.
We all know what happened when the banks got the money. They get paid back for the “toxic” assets, but still foreclose and take the house back. Values drop, and what happened to all the cash the bank got? They just sat on it.
My guess is a lot of people just stopped paying and have the money, the banks will never find out they’ve been stoking away the money. What a scam.
This reminds me of all the illegals who were flipping houses in california, buying them with no money down and selling them to their cousins for 100k more than they bought it, this would happen a few times and then the house would go into foreclosure without anyone ever having made a paying and illegal aliens with no education here illegally walking away with a few 100k, this happend a lot, the government was warned it was going on and did nothing. I work my ass off and wonder what the hell I am doing, frustrated beyond belief.
I feel your frustration...
I have several acquaintences who’ve hit the jackpot (in their minds) in similar situations.
One acquaintence bought a condo many years ago and used it’s equity to buy other houses to rent out. It was the usual no money down, liar loans, etc. and he was doing very well till the housing market downturn.
He ran out of money and couldn’t make any of the payments on his condo and 5 rental properties...but he continued to collect the rents.
Long story short, he collected rents for over 4 years and never paid a dime on any of the mortgage payments, homeowner fees, property taxes etc., including his own condo.
Eventually the banks started taking the properties back, but for over 4 years, pure income, no expenses and lived free in his own condo.
From what I’m reading, this is more common then one would think.
To me it all comes down to the value of peace of mind (in addition to maintaining good credit).
These people wake up every day with no peace of mind that they will continue to be allowed to live in a house they don’t own.
I think the stress of that alone would kill me (or at least seriously impact my health).
So I’ll continue to pay my mortgage because it’s the right thing to do and it gives me the peace of mind I need. (Lord knows there are enough things going on in the world to stress me out without me creating even more stress through my own bad actions.)
Let me rephrase, we wont lose our homes, we’ll just owe 1000% more than they are worth, or are ever going to be worth. Is this a difference? Worse I’d say. Like I said, we haven’t seen the beginning of the drop in housing prices, that is what is coming though.
We paid off our mortgage in 2008, and our house is still worth about 60% more than what we paid in 1990. I know a lot of the newer homes are upside down on value.
I share your OUTRAGE over this and a number of other attrocities that have been foisted upon the American taxpayer.
Good character, good principles and personal responsibility are being trashed, minimized and laughed at by those who don’t realize the catastrope that’s unfolding. Cheaters, liars and free-loaders are being held up as “normal” by Liberal thinkers. They will be our downfall.
So: RIGHT ON SCHYTHIAN! THIS KIND OF CRAP MAKES ME MAD AS HELL TOO!
I guess the concept of honor and the value of ones word is completely lost?
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