[J78Jason]

Give me a break...he's saying that he was tired of getting forced to leave his rentals because they were converting them to sell. The condition the market was in was condusive to buying, and the thought of bouncing around probably didn't sound too appealing when he could pay the same amount on a mortgage and be settled - I can understand that. Yes, I'm sure he got caught up in the whrilwind like a lot of other people did, but some of the smartest people I know bought at that time.

I think a lot of the critical people on here love to paint everyone who bought at that time as some degenerate who was making $12/hour and stumbled backwards into owning a home. Yes there were those people, but a lot were normal middle-class and above who would still be in their homes if they had lived in, say, Nebraska or somewhere else that didn't have such huge price spikes/drops. Nobody saw this coming, and if they did they were an extreme minority.

[rpachigo]

Two of my tenants lost jobs. It's a terrible mess out there. I feel for you guys.

[cmist]

Originally Posted by Tymberwulf

How are your mortgage payments twice what they should be? You signed the paper, you knew what you were getting.

Maybe you are basing it on what the current home value is, so I have a question for you:

If instead of losing value your home doubled in value, would you think it fair for the bank to come to you and say "Your mortgage payment is only half of what it should be, so we want you to pay more now"?

I still don't see how folks complain about how they are over paying for mortgages, you bought the home, it didn't go anywhere, the home is still there.

Hey there,

Writing to you from the other chapter of the foreclosure club in Phoenix.

The logic above seems faulty because your loan doesnt increase just because the home value does, so naturally the bank wouldnt have any reason to increase your payment. The loan stays the same regardless of the value UP or DOWN.

On the other hand, when your value goes drastically below what you owe, you are now trapped. There is NO other way to move without doing a short sale. No way to consciously lower your payment. You are stuck with that payment for as long as the conditions that the banks themselves created exist... which will be a long time.

In a normal market, you may say to yourself... gee, I want to downsize... sure, I CAN afford this home, but I could seriously lower my payment if I downsize. Many normal responsible people do just that in a normal market. When they feel things are getting too expensive, or lost some hours at work, they decide its time to downsize to avoid trouble with the bills.

Well.... That option is now totally eliminated due to this bank created mess, so whats a person to do if they want to lower their payment? Should a person stay in a home until they are old and gray needlessly paying for more home then they need while identical housing all around is half the cost of what they pay now? (All in the name of keeping up their end of the bargain??) Why should someone feel guilty because they want to reduce their monthly bills, but it has become an impossibility because they live in a real estate market that was destroyed by the very same person that loaned the money?

Banks would be wise to realize this reality and minimize their losses. Even after they kick out the homeowner and take back the house, what benefit is that? Wont that result in the same home being sold for less and creating the same low payment that the original owner would have payed if the banks incentivized staying vs. moving? Banks are continuing along the same stupid mentality that got us in this mess in the first place.

No one should have any hostility towards their troubled or angry neighbors. Its 100% a greedy banker issue. The first part of the recovery can begin when banks finally dump all their inventory, but once thats over, the real estate markets they leave behind will still be crippled, reeling and twitching in the trail of the poor comps they generated in an effort to get the heck out as fast as they could. Hate on them, and not your neighbors. While you are still wading in the trash that the banks leave behind, they will be sipping margaritas in Cabo announcing and cheering they have recovered.

[airics]

but in Arizona, they cannot come after the deficiency, here they can.

[cmist]

Originally Posted by airics

but in Arizona, they cannot come after the deficiency, here they can.

Thats even worse... banks are slime.

[cmist]

Oops I made a quick assumption that I knew what that meant but Im interested in knowing more about that. What does that mean they can come after the deficiency? As in... if your $300,000 home forecloses and sells at a price of $100k, you are indebted for the difference for the rest of your life???

[tony soprano]

Yes, hate on all the greedy, horrible banks that strong armed everyone into buying homes whether they wanted one or not.

[RCCCB]

Originally Posted by cmist

Oops I made a quick assumption that I knew what that meant but Im interested in knowing more about that. What does that mean they can come after the deficiency? As in... if your $300,000 home forecloses and sells at a price of $100k, you are indebted for the difference for the rest of your life???

Yeah, if your market goes down you take the loss, and if your house trippled in price you would take the money and run.
You shouldn't be allowed to only benefit and never take a down side in life IMO.

[RCCCB]

Everyone in the country should just walk away today from their mortgage, their car lease or loans and should especially default on their student loans.

They can get Obama to make other people who make a dollar more than them to pay their bills so they can go back to living without responsibility like when they were twelve.

Great way to sink a country IMO.

[olecapt]

Originally Posted by tony soprano

Yes, hate on all the greedy, horrible banks that strong armed everyone into buying homes whether they wanted one or not.

One can easily run an unethical or illegal con without strong arming. Merely providing misleading and incomplete information would suffice to be on the malicious side of the ledger.

Note that Nevada lenders can, but do not, obtain deficiency judgements. The cost is high and bankruptcy provides a ready counter. So it happens rarely if at all and pretty much never to an owner occupant.

Seconds are more likely to be trouble in AZ or NV.