Skip to comments.
Walking away from a mortgage might make sense
San Jose Mercury News ^
| September 26, 2010
| LINDSAY A. OWENS
Posted on 09/26/2010 7:41:50 AM PDT by Oldeconomybuyer
click here to read article
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-80 ... 221-236 next last
To: Oldeconomybuyer
Sure it might make sense...if you don't mind reneging on your legal and moral obligations.
2
posted on
09/26/2010 7:45:14 AM PDT
by
BenLurkin
(This post is not a statement of fact. It is merely a personal opinion -- or humor -- or both.)
To: Oldeconomybuyer
Who’s going to rent to them? Their credit will be destroyed.
3
posted on
09/26/2010 7:45:44 AM PDT
by
Wage Slave
(Army Mom!)
To: Oldeconomybuyer
Gee, everybody wins when people walk from their mortgage, and it stimulates the economy too...yeahhhhhhhhh/s
4
posted on
09/26/2010 7:46:07 AM PDT
by
HerrBlucher
(Defund, repeal, investigate, impeach, convict, jail, celebrate.)
To: Oldeconomybuyer
LINDSAY A. OWENS is a Ph.D. candidate and research affiliate at Stanford's Center for the Study of Poverty and Inequality. She wrote this article for this newspaper.That tells you all you need to know.
5
posted on
09/26/2010 7:46:52 AM PDT
by
Drill Thrawl
(Palin Haley O'Donnell - mmm mmmm mmmmmmmmm)
To: Oldeconomybuyer
How will walking away from your morgage affect your credit score and ability to buy a home in the future?
6
posted on
09/26/2010 7:47:03 AM PDT
by
Farmer Dean
(stop worrying about what they want to do to you,start thinking about what you want to do to them)
To: Wage Slave
Someone will rent to them but it probably won’t be a very nice place.
To: Oldeconomybuyer
Some recent valuations are nearly halved. In general it's not a good thing to default for obvious reasons, but paying twice what your house is worth is not a good thing either. These are market fluctuations. Not “stupid people” in many cases.
8
posted on
09/26/2010 7:47:55 AM PDT
by
allmost
To: Oldeconomybuyer
Lindsay, the Ph.D. candidate, should know that the federal government taxes “forgiven” debts as income.
9
posted on
09/26/2010 7:50:44 AM PDT
by
Mojave
(Ignorant and stoned - Obama's natural constituency.)
To: Oldeconomybuyer
Yes, and....some of us in California bought houses we can afford, didn't flip them, stayed in them through the storm...and we're still here.
All those refi's to the lower rates didn't hurt either. The other bozos used the rates to bump up their living standard, but....some of us used it to ensure that we could stay where we were.
Choices, choices....they all have consequences.
10
posted on
09/26/2010 7:51:32 AM PDT
by
Regulator
(Watch Out! Americans are on the March! America Forever, Mexico Never!)
To: Oldeconomybuyer
There are 8 million homes currently foreclosed and owned by banks, with an additional 18 million homes whose mortgages are three months or more overdue (i.e. likely to foreclose).
On Friday, the Feds reported that 95% of all new mortgages have been issued by Fannie and Freddie Mac, the govt system with NO regulatory control. Private banks issued just 5% of all new mortgages.
What this author (a Ph.D. candidate at Stanford) suggests would more than damage the private banks and further strengthen the govt financial entities.
Further, I cannot ever remember an author recommending purposeful default.
To: Oldeconomybuyer
Ok, you walk away from a $1,500 mortgage payment so you can rent a $1,500 a month apartment?
12
posted on
09/26/2010 7:53:31 AM PDT
by
svcw
To: allmost
paying twice what your house is worth is not a good thing either.
No one paid twice what the house was worth. They paid exactly what the house was worth at the time they bought it.
In fact, they thought the house would be worth a lot more in a very short time and they were wrong.
If you bought your house planning on living there for 15-30 years, you can live with the market fluctuation.
13
posted on
09/26/2010 7:55:25 AM PDT
by
oh8eleven
(RVN '67-'68)
To: ilovesarah2012
As a landlord, I learned long ago to look at the *reason* for personal bankruptcy on an individual basis, divorce for example is a common reason why bankrupt but otherwise potentially excellent tenants are looking to rent.
Unfortunately, defaulting on a badly underwater loan often makes good financial sense, and if a applicant is currently employed and current on other obligations, it may even be a plus as other property managers may not be taking a closer look, and rejecting potentially desirable tenants out of hand.
To: Oldeconomybuyer
If she is advising a deed in lieu she is being irresponsible not to also mention this will have as negative effect on your credit as a forclosure
15
posted on
09/26/2010 7:58:05 AM PDT
by
fml
To: Oldeconomybuyer
A good friend told me she’s ‘giving’ her house back to the bank next year. I wonder what that could mean????
16
posted on
09/26/2010 8:00:02 AM PDT
by
rintense
To: M. Dodge Thomas
I agree. Some circumstances occur that are beyond a person’s control.
To: Oldeconomybuyer
Zero Hedge is predicting QE2 on a vast scale which will cause a large wave of refis.
18
posted on
09/26/2010 8:01:17 AM PDT
by
junta
(S.C.U.M. = State Controlled Unreliable Media)
To: Oldeconomybuyer
Dumbing responsibility & accountability downward. We are led by a lawless/corrupt man & he begets a lawless congress. We will become a lawless nation - joining the lawless/corrup world.
To: oh8eleven
A depressed area like Detroit is a good example of a place where walking away from an underwater mortgage in order to move out-of-state and look for work is a far more rational choice than burning through your savings to keep the house while hoping that the local economy will turn around.
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-80 ... 221-236 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson