Why isn't the government bailing homeowners out? (Atlanta, Gordon: real estate, rent)

[pellur]

I feel sorry for the OP and I agree with Greg. In this economy you need to have 12-month savings set aside.

I am not from this country and am grateful to this country for giving me a chance to flourish. The concept of savings here is non-existent. People here are high risk takers. Be it the 401K/Mutual Funds/Stock Market investors or buying homes > $400K on less than $80K salary.

[IhaveDominion]

Originally Posted by BeyondInfinity

I was thinking the same thing. A rep point for you!

Man, What you said!!! Mad cuz ur pride to high to seek help and feel like you can do it alone, Im sick of it saying girl please secret boyfriend, sounds like thats what you need then maybe you can stay afloat tryna knock the world cuz ur poor choices...tisk,tisk,tisk

[ATLTJL]

I hate to sound like a jerk.....

But you know, there IS relief available to you. If you don't want to sit around renting a house to section 8 people, why not just walk away from the home?

You can get foreclosed on. I think the system is pretty fair, if you can't pay, the bank gets the house. Then all you are out is what you put into it, but it's not like the bank can come after you in court and garnish your wages to try to get their money back.

So the current system really does help mitigate your risk. If you can't pay, you have the right to simply walk away and lose no more money than you have already. That's really not too bad. Of course, you probably won't be able to buy anything else in the next few years, but if you couldn't keep up with the house you had before, why should you be able to? I'm not saying it makes you a bad person, it just makes you a bad credit risk.

[researchnerd]

Originally Posted by ATLTJL

I hate to sound like a jerk.....

But you know, there IS relief available to you. If you don't want to sit around renting a house to section 8 people, why not just walk away from the home?

You can get foreclosed on. I think the system is pretty fair, if you can't pay, the bank gets the house. Then all you are out is what you put into it, but it's not like the bank can come after you in court and garnish your wages to try to get their money back.

So the current system really does help mitigate your risk. If you can't pay, you have the right to simply walk away and lose no more money than you have already. That's really not too bad. Of course, you probably won't be able to buy anything else in the next few years, but if you couldn't keep up with the house you had before, why should you be able to? I'm not saying it makes you a bad person, it just makes you a bad credit risk.

In Georgia, if the foreclosed home sells for less than what you owe on it, the lender can indeed file a deficiency judgment and come after you for the difference. With so many people underwater right now, and so many foreclosures being sold back to the lenders (who can set the price they are willing to pay themselves), this is an enormous risk.

The only way to avoid that is to declare Chapter 7 bankruptcy (in addition to the foreclosure) and include the mortgage in the bankruptcy filing. It's a difficult and painful process, but had we not done this, we'd be in debt to the tune of $138k for a house we no longer own or live in.

[Caleb Longstreet]

Originally Posted by ATLTJL

I hate to sound like a jerk.....

But you know, there IS relief available to you. If you don't want to sit around renting a house to section 8 people, why not just walk away from the home?

You can get foreclosed on. I think the system is pretty fair, if you can't pay, the bank gets the house. Then all you are out is what you put into it, but it's not like the bank can come after you in court and garnish your wages to try to get their money back.

So the current system really does help mitigate your risk. If you can't pay, you have the right to simply walk away and lose no more money than you have already. That's really not too bad. Of course, you probably won't be able to buy anything else in the next few years, but if you couldn't keep up with the house you had before, why should you be able to? I'm not saying it makes you a bad person, it just makes you a bad credit risk.

Yeah, that's the ticket...just walk away...in fact if any of you feel it's too much, shirk your obligations and just give it back to the bank....interesting logic...I din't realize it was a right? Wow, must have missed that in civics class....yeah,
I guess I should just stop paying my utilities because you know, that's my right apparently......

Got a better idea, f section 8 with non-paying boyfriends, give her some relief because she is a better investment for the taxpayer as she is contributing to the system....not taking...do any of you who oppose even get that...do any of you who oppose understand that there is a limit to other people's money?

This lady ought to get a little help for trying, kick the section 8 on the street and let them realize that 4 boys of age working at macdonalds pooling family assets along with mom and her squeeze doing something is better than taxpayers paying the freight.

Here's an idea...suppose section 8 got abolished, this lady's taxes were lowered due to the lower social cost she might be able to afford her house???

The aha moment...chew on that and get back to me...oh and yes...ever heard of two jobs? I have and will be working at job 2 throughout the weekend.....

Just sayin....god do we have to reform social benefits

[graterdaze]

SO basically, your are getting your Mortgage paid??????? by sec 8????

[Caleb Longstreet]

Originally Posted by graterdaze

SO basically, your are getting your Mortgage paid??????? by sec 8????

The reason some landlords like section 8? The guaranteed payment from the government....the reason some of the same landlords hate section 8? The risk of a bad tenant.

However, if someone acts up on section 8, they are booted, or can be booted, from the program. So, unwed mothers with kids tend to be on their better behavior. However, any of their problems often end up being your problems. That, coupled with general liability for the property can make it dicey.

If her mortgage was modest, sure, it can cover it...4 kids, unwed mother...yeah, we the taxpayer can be paying a pretty penny for her and her kids well being....ergo my comment about kicking her and her boyfriend to the curb....motivate them....that boyfriend not marrying her and staying on the down low is an old old tactic....otherwise the benefit gets reduced...she may be on sec 8 but she is obviously wise to the loopholes.....

And I will be spending all weekend on job 2 to make ends meet.....

Yeah, seems fair....

[GeorgiaLakeSearch]

Originally Posted by Caleb Longstreet

The reason some landlords like section 8? The guaranteed payment from the government....the reason some of the same landlords hate section 8? The risk of a bad tenant.

However, if someone acts up on section 8, they are booted, or can be booted, from the program. So, unwed mothers with kids tend to be on their better behavior. However, any of their problems often end up being your problems. That, coupled with general liability for the property can make it dicey.

If her mortgage was modest, sure, it can cover it...4 kids, unwed mother...yeah, we the taxpayer can be paying a pretty penny for her and her kids well being....ergo my comment about kicking her and her boyfriend to the curb....motivate them....that boyfriend not marrying her and staying on the down low is an old old tactic....otherwise the benefit gets reduced...she may be on sec 8 but she is obviously wise to the loopholes.....

And I will be spending all weekend on job 2 to make ends meet.....

Yeah, seems fair....

The government should not be bailing anybody out. Everybody needs to take responsibility for themselves/their children. I worked hard to get to where I am without government support(yes I did have financial support from my mom in college & to start my business). I could have done it with loans but it would have been harder but still very possible. (if I was doing it that way I would have gone to a public university) I loved reading the Occupy peoples reason for why they are the 99% it was a bunch of crap. One person was complaining because the child support their mother gets for themselves was ending when they turned 21! They are lucky they get child support up until 21 in most states it is 18/graduate high school. Then another person who went to an expensive private university and became a teacher, and complained they had so much debt and no chance of advancement in their career. Well they could become a a principal or superintendant eventually. Also everybody knows about what you would make being a teacher so why would you go to an expensive private university if you needed loans? The person should have gone to a public university or a small private school that gives large scholarships.

I have many rental properties and my "companies" do rent to section eight because I get a guaranteed amount of money on time every month. Most of my section eight tenants are good tenants. In one house a section eight person left a marijuana plant in the basement!

Section eight is great for my income but I pay crazy taxes so I feel rewarded by getting some of my money back! For most welfare recipients welfare is a way of life.

Did you know the government did a report that the head start program does not make a difference by the time the children are in first grade and it does not change graduation rates! Look at the APS map of where they offer head start and they are all in the clusters with the lower/lowest graduation rates(and least/less desirable HS zones) in APS!

[Onthemove2014]

Originally Posted by Caleb Longstreet

Yeah, that's the ticket...just walk away...in fact if any of you feel it's too much, shirk your obligations and just give it back to the bank....interesting logic...I din't realize it was a right? Wow, must have missed that in civics class....yeah,
I guess I should just stop paying my utilities because you know, that's my right apparently......

Then they would cut them off. The same way they would take your house if you stopped paying.

[anothertntony]

Originally Posted by Caleb Longstreet

Yeah, that's the ticket...just walk away...in fact if any of you feel it's too much, shirk your obligations and just give it back to the bank....interesting logic...I din't realize it was a right? Wow, must have missed that in civics class....yeah,
I guess I should just stop paying my utilities because you know, that's my right apparently......

A mortgage involves a legal contract that includes reclamation of collateral (the house) in the event that the borrower does not make the payments as agreed. In other words, walking away is a right as defined by the contract, although the implications can depend on state law and the specific loan terms.

Your utilities bill is a bill for services already rendered to you. You have no right to not pay it.

I don't understand why people have such difficulty realizing that walking away from a mortgage is a legal business decision and not a moral issue. If you still believe that "my word is oak" trumps legal contracts, then you are gullible. It is an endearing thought that business transactions operate with a moral compass, but it is not true. Some individuals operate that way, and that's great, but the legal system itself depends on contracts.

Businesses break contracts all the time when the penalty clause is a better option than honoring the nominal contract terms. For example, take IBM's termination of the Blue Waters contract, which involved hundreds of millions of dollars in government funding:

Blue Waters - Wikipedia, the free encyclopedia