[CDusr]

As a corporation you actually would be better off, since they can pretty much get away from "responsibility". They are a legal fiction used for such purposes. I mean you can go ruin the gulf and radiate the planet then declare BK, then probably run some agency in the govt or some other big conglomerate.

Our financial system is truly a "sick" parasitic system. People's participation in it certainly allows it to go on, but what the banks are allowed to do w/ the aide of the govt ought to outrage everyone. Most people have no clue how these banks really work, if they did they would "lose" it.

It is nothing more than debt slavery for generations to come. People really need to understand what is going on in the financial markets.

[Spring Hillian]

Good luck. Let's us know how you make out.

Originally Posted by stpeteguy

The whole "blemished credit" stuff is way overblown by people who know nothing about the process.

You can always find someone to rent to you if you have the money and you can always find someone to sell you a car if you have enough down. Those fear tactics that the world will stop turning if you don't pay are just nonsense. There's no truth to it at all.

I personally know 3 people who have already done the foreclosure process and they've had no problems at all other than slightly higher interest rates on consumer loans. It's way, WAY less than the amount of underwater mortgage they walked away from.

None have had any problems renting a place.

The really big eye opener was when my attorney told me that I wouldn't believe how many business people are doing this whole foreclosure process right now and have multiple rental properties that they haven't paid on in many, many months and yet they are all rented out to tenants. Business people are rich for a reason I geuss.

As for having to pay it back. That's a lie too. A skilled attorney will negotiate the defiency judgement out of the foreclosure. Only people without legal represenation get judgements slapped on them.

[Three Wolves In Snow]

If he does declare a bankruptcy, he will not have much of a problem getting things he needs later on, including credit cards.

The reason is, those people know that he cannot file another bankruptcy so they WILL get their money from him. In fact, typically a lender will tell you that having a bankruptcy is better than "no credit"...that whole "debt free" thing can bite you in the hindquarters.

Renting is totally possible. If the credit is bad, they'll just ask for more upfront.

Same with getting a car.

Same with getting any luxury item.

Put more down, those people WILL lend you the rest...especially if you have a bankruptcy on your credit.

I think a lot of people truly do not understand how credit/banks/lenders work...as someone said earlier, you'd get ticked off to no end if you found out.

But most importantly, go check out your rights. It's right there on the internets....it's amazing what you can "get away with" if you happen to know what you are allowed to do.

[StreetSmarts]

Originally Posted by stpeteguy

The whole "blemished credit" stuff is way overblown by people who know nothing about the process.

You can always find someone to rent to you if you have the money and you can always find someone to sell you a car if you have enough down. Those fear tactics that the world will stop turning if you don't pay are just nonsense. There's no truth to it at all.

I personally know 3 people who have already done the foreclosure process and they've had no problems at all other than slightly higher interest rates on consumer loans. It's way, WAY less than the amount of underwater mortgage they walked away from.

None have had any problems renting a place.

The really big eye opener was when my attorney told me that I wouldn't believe how many business people are doing this whole foreclosure process right now and have multiple rental properties that they haven't paid on in many, many months and yet they are all rented out to tenants. Business people are rich for a reason I geuss.

As for having to pay it back. That's a lie too. A skilled attorney will negotiate the defiency judgement out of the foreclosure. Only people without legal represenation get judgements slapped on them.

We have a $50k deficiency placed on us with the sale of our house. We have an attorney. Our attorney is telling us our case is very unusual. I lost my job in the building industry, was out of work for over a yr, found a job in NC, so we left the house so I could accept the job offer in NC. Got an attorney to handle all of our stuff for us, and the banks want $50k from us.

[stpeteguy]

Originally Posted by ComSense

We have a $50k deficiency placed on us with the sale of our house. We have an attorney. Our attorney is telling us our case is very unusual. I lost my job in the building industry, was out of work for over a yr, found a job in NC, so we left the house so I could accept the job offer in NC. Got an attorney to handle all of our stuff for us, and the banks want $50k from us.

file bankruptcy then. problem solved.

[gbugmiami]

This just happened in my neighborhood, the bank in both cases took a $200k+ hit. I was the most surprised of all, but both short sales closed quick (months) and new people moved in for what the properties were worth. Banks may just have figured it out its best to get them off the books and moved. In our case, they sold for what they were worth, while we would have liked them to sell higher, the reality is everyone knows what the houses are (or arent) worth anymore. The people that took it to the bank walked away, and life goes on. Im all for paying your responsibilities and all that, but its your life, do what you got to do. Talk to the bank, or talk to a real estate lawyer.

[bigh110]

I have two neighbors in Florida that walked away from their mortgages. the one neighbor lost their job and could not pay their mortgage and had no other assets the bank foreclosed and has a judgement against them but with no way to collect they expect it to be written off. the other neighbor bought his house as a 2nd home and when he walked away he sent the keys back and told the bank he could not afford the mortgage. he paid 700k for the house in 2005 and owed 550k when he walked. the bank sold it for 295k and now has a lien on his primary property in Michigan and is taking/garnishing 12% of his gross earnings till it and the interest is all paid back. moral of the story if you have (a job) a way to pay the bank will come after you for the money! short selling is the way to go if you can actually pay the mortgage then the bank will agree to forgive your outstanding balance you owe if they agree to the sale price.

[newyorker24]

Originally Posted by bigh110

I have two neighbors in Florida that walked away from their mortgages. the one neighbor lost their job and could not pay their mortgage and had no other assets the bank foreclosed and has a judgement against them but with no way to collect they expect it to be written off. the other neighbor bought his house as a 2nd home and when he walked away he sent the keys back and told the bank he could not afford the mortgage. he paid 700k for the house in 2005 and owed 550k when he walked. the bank sold it for 295k and now has a lien on his primary property in Michigan and is taking/garnishing 12% of his gross earnings till it and the interest is all paid back. moral of the story if you have (a job) a way to pay the bank will come after you for the money! short selling is the way to go if you can actually pay the mortgage then the bank will agree to forgive your outstanding balance you owe if they agree to the sale price.

This is not completely accurate. Banks will not agree to a short sale if you have the assets/income to pay off the remaining balance (difference between mortgage balance and sale price). I know people that had to bring $45k to the closing when they sold their house as a short sale. The balance was $65k, so they didn't have to pay all of it- but they did pay some of it.

[gypsychic]

Originally Posted by newyorker24

This is not completely accurate. Banks will not agree to a short sale if you have the assets/income to pay off the remaining balance (difference between mortgage balance and sale price). I know people that had to bring $45k to the closing when they sold their house as a short sale. The balance was $65k, so they didn't have to pay all of it- but they did pay some of it.

That's right - to do a short sale, you have to show "hardship." It can be difficult to do a short sale, lots of paperwork and aggravation, but it is a lot more worth it not to be saddled with a judgment if you can get the bank to agree.

[Retiredcoach]

Originally Posted by stpeteguy

Well, I finally got the ball rolling on this.

I retained legal council a few days and have decided to press ahead with it.

I will update this thread with new information about the process as it unfolds.

I have followed your initial thread and many follow-up posts with great interest and curiosity. Trying to remove myself from my own personal biases of moral high ground, it is so easy to understand and rationalize why you are taking the tact that you are. What amazes me is that more people are not emulating you as their dire financial situations dictate thinking rationally, not perceived ethically.

You are not doing anything illegal.... you are pursuing a route that our system allows. It amazes me that those who will criticize your pursuit most are the same people whose moral compass clouds when their entitlements are threatened. For example, some who collect Social Security will argue that "they worked for it, paid into it, and are entitled to receive it regardless of the cost". It matters little that many receive much more than they have ever paid into it, and are bankrupting a system on the backs of the younger generations. Or you can look at those collecting full government pensions.... how many are saying that they will reduce their pensions to preserve the financial integrity of our significantly indebted country?

The very best of luck in your pursuit of financial solvency!