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I'm walking from my underwater mortgage
NY Post ^ | 01/31/10 | JANET SPEER

Posted on 01/31/2010 7:57:46 PM PST by TigerLikesRooster

I'm walking from my underwater mortgage

By JANET SPEER

Last Updated: 7:34 PM, January 31, 2010

Posted: 4:34 AM, January 31, 2010

I stopped paying my $1,450-a-month mortgage on my 200-year-old, four-bedroom home in September 2008 -- after making the hard decision to walk away from my mortgage because it is hopelessly underwater.

It is not an easy decision to walk away from your home, and in the beginning I actually felt like a loser. That was the hardest part.

You see, I was raised to live up to my financial responsibilities. I was taught plenty about personal responsibility. But in this case I had no practical solutions to my financial dilemma -- I lost my job, was turned down for a mortgage modification and owed a lot more than the house is worth.

I WOULD RATHER FIGHT THAN SWITCH HOMES

I am a single parent with three children, one with medical issues. So, with only unemployment benefits and child-support money, I decided to pull the plug on my mortgage payments.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: jinglemail; mortgage; underwatermortgage; walkingout
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1 posted on 01/31/2010 7:57:46 PM PST by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 01/31/2010 7:58:17 PM PST by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster

The banks do it. Cabinet and Congress critters do it. Once things go a bit further everyone will be moving into tents.


3 posted on 01/31/2010 8:00:31 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: TigerLikesRooster
A person's gotta do what a person's gotta do.

If she had filed for bankruptcy she may have been able to keep her house and had her other debts forgiven.

4 posted on 01/31/2010 8:00:39 PM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all. -- Texas Eagle)
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To: TigerLikesRooster

Good, I’ll make a fortune in Short Sales for years to come.


5 posted on 01/31/2010 8:00:57 PM PST by Hoosier-Daddy ("It does no good to be a super power if you have to worry what the neighbors think." BuffaloJack)
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To: driftdiver

and that is what the dems want
it gives them ultimate control


6 posted on 01/31/2010 8:01:50 PM PST by television is just wrong
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To: Texas Eagle

Yet she would have still had to make the payment for a house that is worth far less than she borrowed.


7 posted on 01/31/2010 8:02:58 PM PST by Blood of Tyrants (Truth - Reality through the eyes of God.)
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To: TigerLikesRooster

She can join half of the people in this country in Obamavilles by 2013.


8 posted on 01/31/2010 8:03:42 PM PST by 2ndDivisionVet (I will raise $2 million for Sarah Palin: What will you do?)
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To: TigerLikesRooster

$1,450 a month for a $100,000 house? huh? from the information in the article, she sounds like a libtard!


9 posted on 01/31/2010 8:05:19 PM PST by robomatik (III %)
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To: TigerLikesRooster

Three kids and how is it that rent will be less that 1400?


10 posted on 01/31/2010 8:05:45 PM PST by svcw (Ellie and Mark come out come out where ever you are.....)
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To: TigerLikesRooster
after making the hard decision to walk away from my mortgage

Like calling it "walking away" instead of being evicted makes it better?

11 posted on 01/31/2010 8:05:47 PM PST by donna (SarahPAC has donated money to...(wait for it)...Lindsey Graham!)
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To: Texas Eagle

Great...so in essence she lived rent free in the house for 16 months (since sept 08)....I am sure she did not pay taxes either so all she did for 16 months was pay utilities.


12 posted on 01/31/2010 8:05:57 PM PST by milwguy
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To: TigerLikesRooster

Welllll...she got 54K cash from a re-fi. She could have used that money to make house repairs, pay debt. The article doesn’t say where the money went. “I needed cash.” Well, who doesn’t?

I’m very sympathetic to people who lose their homes, but it seems this gal has made a series of bad decisions.


13 posted on 01/31/2010 8:07:07 PM PST by ChocChipCookie (God to Obama: Don't think I'm not keepin' track. Brother.)
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To: TigerLikesRooster

At least she couldn’t make the payments. A lot of people who can make the payments are walking simply because the house has lost value and that makes them feel bad.


14 posted on 01/31/2010 8:07:35 PM PST by HerrBlucher (Jail Al Gore and the Climate Frauds!)
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To: TigerLikesRooster

The woman bought the house for $100k, cash out refinanced for $154k, and the house is now appraised at $129k. Additionally, the monthly mortgage payment mentioned, on $154k, works out to almost 11%.

Something doesn’t add up, here. Ms. Speer is not being honest.


15 posted on 01/31/2010 8:09:36 PM PST by RegulatorCountry
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To: robomatik

i imagine that includes taxes and insurance


16 posted on 01/31/2010 8:09:59 PM PST by Chickensoup (We have the government we deserve. Is our government our traitor?)
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To: Texas Eagle

Doesn’t seem to be a good option. You can’t get a mortgage mod in bankruptcy. She couldn’t afford the $1450 anyway, so she would be no better off and would still lose the house. The article didn’t say what city she lived in but the fact that the bank hasn’t foreclosed is telling. Normally if there was a market for the house she would have been foreclosed on within 9 months or less. In some places the banks don’t foreclose because they don’t want to pay the back taxes, ie Buffalo. They may never foreclose on the place. In other instances her mortgage is part of a pool that comprises a mortgage backed security. There’s a servicer who’s supposed to handle this, but if a large portion of the pool went bust, there might not be the funds to foreclose out the non-performers. And they may not be paying the taxes either which means the property will eventually go in a tax foreclosure sale, which means the mortgage will be cancelled out anyway. So the point is she needs a real lawyer to advise her, not some scam adviser telling her to just stop paying and hope for the best.


17 posted on 01/31/2010 8:10:05 PM PST by appeal2 (Government is not the solution, it is the problem and eventually the enemy.)
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To: TigerLikesRooster

Buying a product and taking out a loan are to different and distinct business transactions. She borrowed money AND bought a house. There is no requirement to borrow any money to buy a house, every seller will gladly take cash.

The second transaction didn’t turn into a personal ATM mahine like she planned, so she is using that as an excuse to not pay back the money she borrowed.

Perhaps everyone that has borrowed money and bought a new car with it in the last 18 months should walk away from their loan and let the bank take the car back. In every case, more money is owed on the car than what it is worth.

These dolts are the ones that helped dig the hole our economy is in, problem is they are all still digging.


18 posted on 01/31/2010 8:12:16 PM PST by wrench
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To: TigerLikesRooster

Jingle mail. Send those keys back.


19 posted on 01/31/2010 8:12:42 PM PST by Pelham (ObamaCare, it comes with a toe tag)
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To: robomatik
She buys the house for 100K. Then as the bubble inflated she refinances at 154K and puts 54K in her pocket. Now that the bubble deflates and the house is worth 120K she walks away because she refinanced at an interest rate that has to be very high.

Bottom line, she sucked 54K out of the bank and now she's leaving them high and dry.

Nice work if you can get it I suppose.

20 posted on 01/31/2010 8:13:02 PM PST by jwalsh07
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To: Chickensoup

maybe. my brother pays c. $700 for a c. $150,000 house (not including the equity he has placed in the domicile). but, he does live in a rural community here in sw ohio, so who knows.


21 posted on 01/31/2010 8:15:22 PM PST by robomatik (III %)
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To: donna

She didn’t “walk away”. She stopped paying her mortgage almost 18 months ago and used the money she saved to pay off her other debts. And, she is still living there.

Of course, this is all someone else’s fault.


22 posted on 01/31/2010 8:15:30 PM PST by keepitreal ( Don't tread on me.)
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To: TigerLikesRooster

So the bank will get that most valuable property back from her. Consequences for the various ballooning payment schemes have been cooking since the ‘70s, and they’re finally coming around.


23 posted on 01/31/2010 8:17:38 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: jwalsh07

My brother’s friend has lived in his house for 2 years without paying the mortgage. Something about getting a lawyer and nobody knows who holds the deed?


24 posted on 01/31/2010 8:17:45 PM PST by bicyclerepair (Sunrise, a suburb of Ft. Lauderdale, Florida)
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To: Texas Eagle
"A person's gotta do what a person's gotta do"

A person's gotta pay back money a person's borrowed.


25 posted on 01/31/2010 8:17:53 PM PST by I see my hands (_8(|)
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To: svcw

She’s also 51 years old, her kids(adult children?) can’t be that young.


26 posted on 01/31/2010 8:18:15 PM PST by MsLady (If you died tonight, where would you go? Salvation, don't leave earth without it!)
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To: TigerLikesRooster

She’s an idiot. “When it sounds too good to be true, it probably is” lady. She screwed up now all she can do is whine about how awful it is.


27 posted on 01/31/2010 8:18:41 PM PST by bigbob
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To: TigerLikesRooster

And the rest of America pays for her and others like her. And we wonder why we’re bankrupt both fiscally and morally.


28 posted on 01/31/2010 8:19:34 PM PST by jjm1776 (Pro-life, Pro-Gun, Pro-America.)
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To: TigerLikesRooster
"So, with only unemployment benefits and child-support money, I decided to pull the plug on my mortgage payments."

Ah...another grand scheme that failed: the divorce industry. Good! There won't be enough federal revenues to keep any of the social programs for that going for long, either.

May the big default arrive, when moral people are ready.


29 posted on 01/31/2010 8:23:14 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: TigerLikesRooster
This is how deadbeats should be handled for all debts public and private.
And I'm not kidding.

30 posted on 01/31/2010 8:27:11 PM PST by I see my hands (_8(|)
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To: keepitreal

Bingo. There is the moral failure. She has been living there rent free. She should have walked away 17 months ago.


31 posted on 01/31/2010 8:27:54 PM PST by Truth is a Weapon (Truth, it hurts soooo good!)
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To: TigerLikesRooster
I hope to be out of here by the summer

it takes 2 years to evict ?
32 posted on 01/31/2010 8:28:02 PM PST by stylin19a
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To: I see my hands

Yep. Right you are...

I see this and wonder...what car is she driving...how old is it...do all of her kids have cell phones and does she have cable television and a 60” plasma HDTV?

If someone liquidates all of their stuff and cut back to the bone and still cannot pay even if they can get new terms, well I can understand having to walk away. But *something* tells me that isn’t the case here.

But I hear a rash of people justifying this behavior, stick it to the man. Which is exactly the mindset the liberals and Marxists in the government would like to foster.


33 posted on 01/31/2010 8:28:38 PM PST by rlmorel (We are traveling "The Road to Serfdom".)
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To: TigerLikesRooster
Whatever the case, I am ready to go. I hope to be out of here by the summer. I want to get this over with.

Such a burden. 21 months without paying the mortgage. I bet she wants to get this over with (not).

34 posted on 01/31/2010 8:29:56 PM PST by keepitreal ( Don't tread on me.)
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To: TigerLikesRooster
and in the beginning I actually felt like a loser.

And in the end you were a loser.

35 posted on 01/31/2010 8:30:44 PM PST by CharlesWayneCT
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To: jwalsh07

Exactly. And we are supposed to be sympathetic...and see the bank as the bad guy...


36 posted on 01/31/2010 8:30:46 PM PST by ltc8k6
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To: jwalsh07

“Bottom line, she sucked 54K out of the bank and now she’s leaving them high and dry.”

Here is a really outragous example where they bought a foreclosure down the street and then stopped paying on their existing house:

http://renorealtyblog.com/2010/01/the-lateral-move.html


37 posted on 01/31/2010 8:31:51 PM PST by willk
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To: TigerLikesRooster

The 11% mortgage is probably accurate if she took out an ARM on the cash out refinance based on 100% of the appraised value. This is especially true if she had a low credit score to begin with. The article is short on relevant information however... to the point that there is no way to make a meaningful judgement on her situation. To me it sounds exactly like a typical situation that ultimately caused this crisis... mortgage brokers making loans to people who had very little chance of ever paying the money back. Multiply her situation by about a million other persons and you can see why will all be paying for this mess for decades to come.


38 posted on 01/31/2010 8:32:25 PM PST by fireman15 (Check your facts before making ignorant statements.)
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To: TigerLikesRooster

“It’s called — get this — You Walk Away. I am single and dating again....”

:o)


39 posted on 01/31/2010 8:32:58 PM PST by traumer
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To: TigerLikesRooster

Further proof that today most people’s word is worth s—t.


40 posted on 01/31/2010 8:33:19 PM PST by dfwgator
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To: Hoosier-Daddy

Good luck..I’m in the process of buying (hopefully) a condo in a short sale. It’s a really long, frustrating process. I’ve learned so much about the dark side of all of this...and who is making money from all of this. It’s been over three months..but there’s good news. I think I’m going to get it and I think I’m going to hear tomorrow. It’s a good deal, but be prepared for a long, drawn out process.


41 posted on 01/31/2010 8:36:11 PM PST by Hildy
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To: TigerLikesRooster

http://www.calculatedriskblog.com/2010/01/is-this-really-walking-away.html

“First, “walking away” usually means the homeowner can afford to pay their mortgage, but are choosing to strategically default (or in the language of servicers “ruthlessly default”) simply because they owe more than their home is worth.

This homeowner lost her job and has other financial issues. Yes, she owes more than her house is worth, but this sounds like a normal foreclosure caused by financial distress.

Second, why is her mortgage payment $1,450 per month on a $154,000 mortgage? Is that a 10%+ interest rate? Is this PITI? Is there a 2nd with Tony Soprano? Perhaps the reporter could have explained this a little better.

Third, if she stopped paying her mortgage in September 2008, what has the bank been doing? “


42 posted on 01/31/2010 8:36:34 PM PST by ltc8k6
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To: MsLady
She’s also 51 years old, her kids(adult children?) can’t be that young.

I am 52 and have a 16 year old son and 13 year old twins.

43 posted on 01/31/2010 8:36:52 PM PST by LuvFreeRepublic (Support our military or leave. I will help you pack BO!)
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To: jjm1776

This financial crisis is going to produce many lessons learned. Be glad you are the observer and not the subject of the lesson. The failure is so widespread that it will cost the government and lender more to prosecute then recovery of the losses. Since this nation does not have the will to go after the borrower and do not want to distabilize the financial system for prosecuting those who caused the financial collapse and reckless schemes, we will end up doing what most people with money do when they are ripped off, take the losses and take the lesson to heart.


44 posted on 01/31/2010 8:38:34 PM PST by Fee (Peace, prosperity, jobs and common sense)
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To: TigerLikesRooster

That’s legal.

Just immoral.


45 posted on 01/31/2010 8:38:39 PM PST by Uncle Miltie (Liberal Massachussetts says: "FUBO!")
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To: TigerLikesRooster

This is semi-vanity. Note in the “planted” article she had help. The company that “helps” charges $1,000 for advice and uses these planted articles to get clients. I’m a mortgage broker with a site devoted to trying to provide information free to people genuinely in trouble with their mortgages. If the moderator permits, http://www.foreclosurebooklet.com


46 posted on 01/31/2010 8:38:40 PM PST by Doug in CA
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To: I see my hands

Apparently a person doesn’t. Not anymore.


47 posted on 01/31/2010 8:39:39 PM PST by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: ltc8k6

The bank is the bad guy? Not when John Q and Jane W American Taxpayer are gonna take it in the pants. The bank didn’t take care of it, they forfeit their cut. Bulldoze the house, salt the property, sell the homeowners into prostitution and the pets to the local Korean b-b-q.
It ain’t just the deadbeats not paying the mortgage. The banks know they aren’t going to be held responsible either. Anybody remember Resolution Trust? For every penny that goes to the banks, another penny should go to build statues of John Dillinger and Bonnie and Clyde in front of every bank.


48 posted on 01/31/2010 8:42:24 PM PST by j.argese
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To: TigerLikesRooster

She originally bought at 100K, then did a cash out refi for 154K, over 50% increase!!! (at 11% interest, apparently). In all of these sob stories, I have never, NEVER read a story that didn’t involve a cash out refi. If she would have kept the 100K loan, she would have equity, since her home is now worth 120K, and probably a much cheaper note. (even if the interest were the same, 11%, 100K for 30 years is 952, vs the 1450 she is paying now).


49 posted on 01/31/2010 8:42:31 PM PST by sportutegrl (I was for Sarah Palin before being for Sarah was cool.)
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To: sportutegrl

I love the part where she said that the appraiser told her the house was worth $154K, but she didn’t believe it, but still took out a loan for the entire appraised value.


50 posted on 01/31/2010 8:44:54 PM PST by keepitreal ( Don't tread on me.)
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