Posted on 05/02/2011 12:32:17 PM PDT by Notary Sojac
I was just speaking to my bff today and she and hubby are underwater. Not but too much, since they made a huge down payment from their previous home sale.
Their mortgage payments are very high, but they manage. They have no intentions on moving and will just ride it out.
They were able to refinance (excellent credit) and get their mortgage payments lowered (their tax rate was recently lowered as well).
These people who COULD NOT afford their home to begin with are causing all these problems.
If you deed the house to the lender/trustee there is no foreclosure, end of debt, loan is paid in full, the fact that the appraisal was wrong is not your problem. I have never seen a case where this is not true, if someone has one I would like to read it.
“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 believe in keeping covenants. Unfortunately I also saw the mortgage lenders bailed out by the taxpayer in 2008 and 2009 when their poor judgment in making loans resulted in the potential they would default. In 2009 and 2010 I then saw those taxpayer saved companies report high profits and their bailed out CEO’s enjoying megamillion dollar bonuses while the many of the taxpayers footing the bill lost their jobs and homes.
While I have worked in the private sector my entire career, relied on my own brawn and brains to make a living for my family, and believed in both the free market and sanctity of contracts, my viewpoint of the world is becoming jaded. We truly live in a society where there is one set of rules for the elites, one set of rules for the welfare class, and a very different set of rules for the productive working class. Quite frankly, the system is rigged against the productive working class to benefit the elites and the welfare class voters who keep the elites in power.
Do I agree with defaulting on a promise to pay an underwater mortgage? No I do not. However, given a society and economy where the elites do not bear the consequences of their bad decisions and the average working Joe is brutally oppressed by high taxes, global “free trade”, and corrupt multinational employers in bed with big government I can find compassion for some who stiff the big banks by walking away from underwater mortgages. In a perverse way there is some justice in that.
That is not the fault of the underwater debt slaves. Most politicians accept campaign bribes from the banksters in exchange for supporting bank bailouts. Are you one of the people who vote for these corrupt candidates? Blame yourself.
Buy a house you like and can live in at a price and mortgage you can afford. Get a fixed rate or learn everything about your exotic mortgage. There is no excuse for having more note than you can afford -- you signed up for it. If you can afford your note it is a sin to walk away.
It is a dirty little secret that almost all of these ‘underwater’ mortgages were cash out refis to pay off credit cards. Should they ‘walk away’ with their credit card purchases? It is almost impossible to stay underwater even if you buy at the peak if you get a fixed rate mortgage with a reasonable down payment, say 10%.
Damn straight they are. The Mortgage Bankers Association did a strategic default on their own headquarters building in Washington. Walked away and handed in the keys, after many pious lectures to underwater homeowners about their obligation to keep paying up.
If you live in a non-recourse state, you made a contract to pay back the mortgage, OR to hand over the keys and vacate the premises.
Either one satisfies the terms of the contract and either one is perfectly legal, ethical, and moral.
The interest rate you paid was higher than you would have paid in a recourse state, to reflect this risk.
Anyone who is far underwater, with no reasonable prospect of returning to a position of positive equity, should walk away if they don’t mind taking the substantial hit to their credit score.
Don’t worry about the greedy banksters; they do the same kind of stuff themselves all the time.
Something isn't right here. "
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.
My dog became ill with bladder cancer in 2004. Due to superb medical treatment from Purdue University's School of Veterinary Medicine, located about 750 miles from me, where I carried him every month, Bradley lived until 2006. Some back-of-the-envelope figuring showed that my wife and I spent some $26,000 on him. Not a penny was regretted.
Are you really claiming that there is no such thing as a “deficiency judgement”, and that a “deed in lieu of foreclosure” has no adverse impact on a credit score?
In your scenario, most of the mortgage payment would be to pay interest. Very little would be going towards principle. If they are in an area that is off 30%, they are still 20% under water.
I certainly hear you. The ruling class is playing by another set of rules.
Psalm 49 may prove comforting to you.
Not in Arizona.
Many bought in 2005 and 2006 and put 20% down. No refi or credit cards involved. Houses now worth half of that. So good people buy $250,000 house with $50,000 down and note for $200,000. Payments made every month. House now worth $150,000. Owner underwater by $50,000 and bank has received $60,000 in payments. Who's getting screwed here?
good thinkin
like me, I bought gold at $360.
panicked & sold when she dropped to $290.
now it’s way up over $1500.
gee I got royally screwed
One year later? “I’m happy. I feel secure,” she says.
Every whore has her price.
Enron lives. Thanks for reminding us of the roaring '90's, turd.
Maybe I should pay off their credit card debt, too? After all.....it's not THEIR fault, right?
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