Posted on 04/20/2010 11:50:10 AM PDT by 198ml
The DOW hits 11K during a Repub presidency, and it’s called ‘cronyism’. The DOW hits 11K during a Dem presidency, and it’s called ‘recovery’.
You could not be more wrong. When you borrow money, it is not the bank's fault that your investment went south. Defaulting no a loan is dishonest (you signed a promise to pay and you took the money from the bank to buy the investment). Furthermore, while you will be personally liable for the remaining amount above what the bank sells the house for in a foreclosure, let's not kid anybody into thinking you will ever pay that amount. Otherwise, why would you have walked away in the first place if you had to pay them money any way?
If my job did not require maintaining a DoD security clearance, which is partially dependent on credit, I would have walked already. Considering I want to keep my job, the best option for me is inflation as my mortgage is fixed and my annual raises are tied to inflation.
When the banks made bad business decisions (mortgage crisis), they took our tax money legally by threatening tanks in the streets.
When the car companies made bad business decisions (legacy costs), they took our tax money legally by pressuring their friends in congress to give them our tax money.
When a corporation makes bad business decisions, they can legally file bankruptcy.
When an individual makes a bad business decision, they can legally default. Your mortgage contract says if you don’t pay, they get your house. It is their responsibility to properly collateralize the loan.
I guess an individual should be living under a bridge and starving before they default.
Why is it that business can stick it to you with impunity while following the contract but an individual needs to “do what’s right”, regardless of the contract.
I know we’re little insignificant people, but an individual has to take care of their own self interests or they will be destitute.
I guess there’s always welfare for us (but is it ethical to collect it?)
I would be more critical....but....the banks got a near $800 billion welfare check from the govt...and they still refuse to re-work some of the bad mortgagaes....people I work with just end up walking away from homes because the bank refuses to negotiate (most who went belly up on houses are because a spouse lost their job)
And, as long as we do stupid economic deals like Free Trade with Communist China....which ships American jobs to a Communist nation....we put more and more people in foreclosure.
Once we stop Free Trade with Communist China....create jobs in America (not ship them overseas)....and remove all forms of Socialism....the nation will rebound....as well as the Housing market. Need to stop redistributing American wealth to Communists, Bankers, and the lazy....
That's where we are headed.
BTW, I forgot to mention that God Himself provided for people to eventually walk away from life-subsuming debt and enslavement - in the 50 year Jubilee.
“The banks seemed to be unmoved by the risk they were taking on, as well as it’s implications. They are now reaping the rewards of their unbridled exuberance. And they have ONLY themselves to blame.”
Understood. Agreed. My problem is not with the banks.
I simply have a problem with someone like Matt Lauer telling people (who can afford to pay) “Just walk away. It’s no big deal”.
Personal responsibility in this nation is already on the ropes and having a talking head pop up on TV and say “Aw, just blow it off” is inexcusable.
When a bank fails to impose sufficient requirements (such as a down payment, and an earnings to debt ratio that shows you can afford the house) the are taking an inordinate risk. When you lend foolishly, you can expect the default rate to skyrocket.
The banks share some of the fault in this scheme.
As the old saying goes: It takes two to tango.
Not true. You act like this is the first time in history. My grandfather shoveled horse manure for a milk delivery company. He worked hard, made a dollar a day. In the late 1930's he was laid off, even though he worked hard, as the horses were replaced by delivery trucks. He had a wife and 12 children to feed in the middle of the Depression.
I don’t understand this “underwater” BS. Just about everytime you buy a car you are “underwater” as soon as you drive off the lot. As far as houses, most folks buy a house to live in not as an investment. When the house was purchased you agreed to a series of payments allowing you to live there. There is no guarantee the house will go up in value every year.
I bet you also think its “great to Free Trade with Communist China....look at all the jobs we created!”
What we have now is the market attempting to correct the stupidity introduced into the system by people that wanted things they could not afford, and banks willing to make that happen because they wanted more fees and income.
One of the biggest problems we have in our society these days, on all levels and in all arenas, is that too few are willing and able to say "no".
Any job is only worth what the employer HAS to pay to obtain employees!
If I can find someone who can do your job better then you for the same price, you’re fired.
If I can find someone that will do your job cheaper than you, you’re fired!
The oly reason to be in business is for profit!
Boy this board has been overtaken by people without a clue. We benefit greatly from our free trade with China and would not be as wealthy as we are without that trade.
The banks got a big government bailout that I disagreed with, but to try to rationalize that into giving you the right to default on a loan is just silly and wrongheaded. The banks made the loans because the government enticed them to make them. I did not see you complaining when you took the loan and were able to buy the house.
Unless I work for the government.
My husband and I are both blessed that we are still working. Our home has lost almost half of it’s value. As far as walking away from our mortgage because of the decrease in value, would be in my eyes, outright theft. Yes it sucks that we’re paying a mortgage on a devalued home, but it is what we agreed to when signing our loan docs.
I am very aware of that argument and the mathematics that the lenders choose to use. It changes nothing.
If you cannot sign a contract and promise to do what is in it, then you are dishonest. That is what a contract is (a promise between two parties), and if one party can just default on the contract and rationalize it with nonsense like you just spouted, then that person has no business entering into the contract.
It is not an ethical breaking of a promise. It is taking a provision of the contract, in its appropriate legal context, of default by duress. The provision is there.
It is gross manipulation, to assume moral superiority over someone, when there in fact is none, to get him to do what you want him to do. People should "not go there." It is akin to witch craft in its controlling nature.
Agreeing to turn the house over to the bank (provided that you turn it over in good condition) in return for being freed of the payment obligation, is in fact a situation that is contemplated in the contract and should not really be termed "default" at all.
“With banks gaming the system from the very beginning, with almost all of payments going directly to their profits instead of a reasonable amount, to the principle...”
Only because stupid people sign mortgages of 15 years or longer!
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