Posted on 11/16/2008 11:11:44 AM PST by BGHater
Should you keep paying your mortgage?
If you have significant equity in your home, absolutely.
If you don't, it's getting harder to answer that question, especially when our government keeps giving people who owe more than their homes are worth so many reasons not to pay.
Last week, the government announced a program that will substantially lower payments for many homeowners who have little or no equity, but only if they are at least 90 days delinquent.
Critics say the plan, which applies to loans owned or guaranteed by government wards Fannie Mae and Freddie Mac among others, could encourage people to suspend payments.
But what about the moral obligation to pay off a debt?
Elected officials have been chipping away at that by blaming the foreclosure crisis largely on predatory lenders. In a campaign fact sheet, President-elect Barack Obama says he "recognizes that the real victims in the subprime mortgage crisis are not the lenders, but the millions of borrowers who followed the rules and whose only crime was taking out mortgages that lenders told them they could afford."
Last year, Congress started removing some financial hazards of default when it passed a bill that temporarily waives the income tax on mortgage debt that is canceled when a homeowner is foreclosed upon, sells a home for less than the remaining debt (a short sale) or gets a loan modification that reduces the principal balance.
The tax waiver originally applied only to debt on a primary residence canceled in 2007, 2008 or 2009. Last month, in the bailout bill, Congress extended the waiver until 2013.
(Excerpt) Read more at sfgate.com ...
FYI #37
No it will not, you have the same problem the stupid lenders were trying to over come with their interest only loans. Not enough people with enough income to make the payments on over priced homes.
The last figure I saw was over ten million unsold new homes, more are added everyday and tens of thousands of subdivisions started with millions of lots. The bottom is probably 12 to 14 months are more away.
I'm selling to people in a market where the number of new listings and the sales have equaled. We're seeing 10-12 offers on some listings. First time buyers and investors are all over the place.
My rentals are in that area. I'll keep this hand if you don't mind.
I think it may take a year or more for demand to exceed supply, but the word is already out.
I fogot to ping you!http://freerepublic.com/focus/f-news/2133073/posts
Who is John Galt?
We are almost paid off...did the same as you. Husband worked on our cars that had so many miles on them it was unbelievable. STILL own a 72 Ford pick up! No credit card debt either.
Stayed on a strict budget so I could stay home with the five kids.
Neighbor’s all have toys. Boats, four-wheelers,yada,yada,yada. Kids would complain about us not having those things. Well three are on their own now and are financially responsible. They tell me that some of their friends just live off the credit cards and have no clue of finances or personal responsibility.
By the way,I love real men that can fix things! I’ve always told my girls..” Marry a guy that can fix things”.
But there was a time when the schools and society backed up the parents who felt obliged to teach virtues to their children ...
Parents who felt that obligation usually followed through with it...
And their children prospered in their own lives..
many of todays “parents” have no sense of obligation or feel overwhelmed by the crumbling of society’s past foundations..
I think we are in the same county. They tried that with me and I successfully appealed it. I went in armed with facts, was polite, but firm. Have you given that a try?
In your dreams.
I'm doing it, not dreaming about it.
Old Mutual. Out ran the S&P for 10 and 25 years. Was at 9.61 for 25 years. Just dropped to 8.29. No loss of principle.
You have your dreams, I'll live mine.
FYI #37
There is a difference between a “credit union” and a “bank”. Credit Unions, afaik, do not sell your mortgage down the river. And the money they receive in interest payments is used locally to fund other local growth. A credit union is a good thing, and I do not believe you are a fool when paying your mortgage through a credit union. If you use a bank, and you are able to do so, *move your loan* to a local credit union. Send a message of “no confidence” to the banking industry. Even if you lose a percentage point on the interest, take heart in that this benefits your neighbors. Look for CU’s (credit unions) in your area!
Credit Unions Rock, I saved 5 pts on my car loan,3 pts on my HELOC I could go on and on, I moved all my stuff over to the CU
As a matter of FR etiquette, you should include a derogatory statement about lawyers.
You didn't even provide an example of your investments.
As a matter of FR etiquette, you should include a derogatory statement about lawyers.Hope that repairs my immage!
No tax on the premium going in. No tax on the growth. No tax on the pay out. No tax on the death benefit.
If you defer 75,000 through 35 years of work, you will pay 7-11 times in tax during roll out and 35 years of retirement. If you don't defer and pay the tax, you can have twice as much net income in the IUL paying tax on the seed rather than the harvest.
If you read #37, you can also use equity to accelerate your retirement and become your own bank.
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