Posted on 05/02/2011 12:32:17 PM PDT by Notary Sojac
Since it's California centric, it doesn't deal with living in a mortgage recourse state, where walking away is not so easy.
I love this part, it's so tasty when corrected:
Beth Mills with the California Bankers Association warns walking away, or strategically defaulting as it’s called, has a larger impact bringing down your neighbors’ property values keeping the housing market from recovering helping housing to reach a market clearing price and getting the system back to equilibrium.
There, that's better.
this is part of the progressive push to collapse the system
Well this is a test of whether we’re consistent in our ethics.
Do you believe in being a keeper of covenants, or are some covenants more...flexible...than others?
I’d love to see what happens to Suze Orman when someone who lives in a mortgage recourse state tries this and gets sued to recover the balance of the debt owed.
Don't worry.....WE'LL pay for it!
Something isn't right here.
Exactly!
I wouldn't loan this loser a plugged nickel. Nor his loser wife. She feels secure? Nice fat bank account? Good for them, they're gonna need it. I don't think their credit is worth a damn - they'd better save up cash for the next one they buy.
Suze Ormann is a loser too. It doesn't make a damned difference in the cost to stay in the home whether it's worth nothing or a million dollars. They payments are what they are when they agree to make them - when they thought they could rake in a killing on housing escalations and move up. The baby she has/had will learn its morals from a couple of losers.
You assume a risk, and so does the bank.
A prime example of why we are now screwed as a society. Your word is your bond is such an old fashioned idea. /s
You forgot to add the “/sarcasm” tag onto your comment!
There is nothing great about Suze’s advice. Backing out on a commitment, esp. one regarding money, is a huge deal, as the people in the article are eventually finding out. I am currently seeking employment, and virtually every application asks questions as to any bankruptcies, defaults on loans, or judgements placed against me. Thankfully I can answer “no” to these questions, but I cashed in my IRAs and sold equity in my house to a family member to see that all my creditors were paid.
Maybe some people truly do have no other choice, but many just don’t feel like cashing in some of their assets. Too bad then - any negative hits to their credit scores or other repercussions are probably deserved.
Uhhh??? Exactly the amount YOU agreed to pay to stay in the house???
Sorry but I don’t agree with your comment. It IS a moral issue—for the ones who made the decision to take out the loan and made a promise to repay. “It’s better not to make a vow than to make one and then break it.” Ecclesiastes 5:5
Almost all of this housing crunch is the result of GREED on the part of the BUYERS and foolish decision. Ms. Orman’s comments about renting were equally valid 20, 30 years ago but people got envious about everyone else’s McMansion and used two incomes to get the biggest loan possible. No one at any time had a gun put to their head by a bank loan officer to force them to borrow 90 to 100 percent of the value of a McMansion.
If the contract calls for you to either (1) keep making the payments or (2) give up the collateral to the lender, you've honored the contract whichever one you do.
Businesses do this all the time. If a business can improve its cash flow by giving up a purchased or leased capital asset and freeing itself of the payments, it would be violating its fiduciary duty to its stockholders if it did otherwise. I suggest we think of our families as "stockholders" and make decisions on the same basis.
Some of the same businesses who have done this are probably the same ones that hire PR staffs to lecture consumers about "moral responsibility".
Now, if someone stops making payments and continues squatting in the house, I agree that that's an ethical breach and I would not endorse it.
I did mention that in post #1.
What part, the amount of the vet bill? I know a guy who has a beagle at the vet right now. Tests, Xrays and MRIs from this "specialist", who has yet to actually operate, total over $5,000.00.
http://www.bizjournals.com/boston/stories/2009/12/14/story11.html
It's OK for a Big Bank to walk away, because it's a "business decision"....
Someone told me they were thinking of walking away from their underwater house because they could buy a similar house for a lot less money. It never occurred to them that no one would lend them money after they turned in the keys.
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