Thinking About Walking Away? (recourse, approved, credit, finance)

[TimtheGuy]

Originally Posted by Racelady88

Interesting article in The Washington Post washingtonpost.com - nation, world, technology and Washington area news and headlines

I have heard several people who think they can get a new mortgage in 2-3 years.

They can. Can you say FHA, local bank or contract for deed?
Fannie and Freddie are not the only store in town.

[Fighter 1]

Originally Posted by Dd714

You should stress in your thread title the main theme of the article:

Thinking about walking away - EXPECT YEARS OF HURT!

That's a wake up call to the more than a handfull of threads here that are endorsing walking away. The loose credit and forgiveness policies of the current time may not be the policies of tommorrow. To be frank, I pay enough taxes for those truely in need, and I do that gladly because I know a society needs safety nets, I will provide for these safety nets. You will have a place to live, but this doesn't include living in a 2,500 plus square home.

I want those that walk away to suffer, to hurt. Go ahead and walk away, but I want them to know they will be stuck in an apartment, with noisy upstairs neighbors, for a very long time. I want them to know that future employees will review credit rating and they will not be trusted again for responsible positions. I want them to know that collectors will be harrasing them for years. I want them to never be trusted with even a WallMart credit card for a very very long time.

Thank GOD that you have not been granted 3 wishes from a green frog!!!!
or maybe some one can show me how to walk on water TOO !

[Fighter 1]

Originally Posted by mattvj5

The blame goes to both banks and people..banks should have looked at the people harder so when you guys are throwing all of these people under the bus that are walking away look at the banks as well. Their job is to screen people to make sure they can repay the loan, and OBVIOUSLY they did not do a good job of that...the homeowner is at fault as well...I think this "walking away" term is a bad word...at the very least you can do a short sale or a deed in lieu which both will result in marks on your credit, but not as servere as a foreclosure...and you will have worked with your mortgage company to help try to sell it, or atleast give it back and save them some money foreclosing on it...
So when you talk about responsibility talk about everyone, including the banks who are responsible for giving loans to people that can pay them back, and the homeowners who are clearly not meeting their financial obligations

Thanks for some one finally admitting that the home owner is not alone with all the fault here, now maybe some one can answer why then is it the home owner that is taking it in the pants???? If there is some responsiablity on the Banks part , is there maybe some fault or misrepentation on the Real Estate Agents part? and as i have said before What about the Apraiser who put the high Value on the property ( he or she was licensed ) so all involved in the transaction could make their profits? Was there some kind of fraud?? Thats why I encourage filing the UCC-1 . Lets put the brakes on all these forclosures and come up with a good plan . Not slam bang winner take all . Because when you even the field you find that we have rights too!!!!

[HappyTexan]

Sure there is but the Fed is bailing out the banks and builders and not Joe Homeowner.
Wall street and not main street is what matters to the Fed.

[Fighter 1]

Originally Posted by renriq02

If you foreclose you will need to wait 3yrs from discharge for a FHA loan
BK 7 will need to wait 2yrs
BK 13 will need to wait 1yr.

Of course you will need to have re-established credit with no credit lates in the last 12months. These ppl can get rates as low as 5.5%. There are 800score borrowers who are getting the lowest rate of 5.5%.

Can you imagine how that makes the 800 borrower feel?

YES ,VERY LUCKY !!!

[goodbyehollywood]

I can promise you, an 800 FICO borrower does not feel lucky to be getting the same rate as someone who is re-establishing credit after a foreclosure or BK. That's like planting a rose with a weed and expecting the rose to be happy. The weed is an opportunistic parasite that takes more than its share, without respecting boundaries.

Guess who's the weed in this scenario.

[Purple_Princess]

Three words people. Act your wage. Some people DO fall on hard times but get real. Its the mortgage WITH the two car payments, maxed out CC's, and the closet full of overpriced crap for the kids with the tags still on it that is causing the problem for most. Live below your means and buy the house you need and can easily afford. Heres a hint: You don't actually need, granite, slate, stainless steel, hardwood and two sinks in the bathroom. Im sick of this whiny baby "Its not my fault I signed up for a 1500/mo mortgage payment with two minimum wage earners in the house" garbage. Tuck in your shirt, pull up your socks, and handle your business DANG !!

[mimberly]

It must be great to judge all people who loose their home or have to file bankruptcy. Let me tell you that we were not late on our home note until 4-5 months ago when there were no jobs. It isn't fun to loose the things that you have worked for and let me say that in this ecomony I hope for those that judge it doesn't happen to them.. but guess what I didn't think it could happen to us three years ago we were making 60-70 thousand a year guess what lost our jobs.

[Purple_Princess]

No offense but if BOTH you and your spouse were making that kind of money for any length of time and now are about to lose your home you either purchased something you could not EASILY afford, didn't save because you thought the money would just keep coming no matter what, or you were overextended in other ways besides your mortgage. I would bet that its a little of all three and looking back from your current position you all are thinking of all the steps you could have taken to avoid this, Its not judgement just common sense. You don't have to admit it but a household that rakes in six figures gets little sympathy for poor choices when no deaths or natural disasters are even involved. Even then insurance and savings should be in place. Hopefully you will learn from this instead of shooting the messenger.

[Dd714]

Originally Posted by Fighter 1

Thank GOD that you have not been granted 3 wishes from a green frog!!!!
or maybe some one can show me how to walk on water TOO !

I have no idea what a green frog or walking on water has to do with my post, frankly I don't understand it at all, but I assume you disagree with my post.

That's your right to disagree, I assume you are having financial difficulty and facing foreclosure or choosing to walk away, and so naturally you want some degree of foregiveness on your liablitities, or a tax bailout of some sort.

That's natural, but your response is not objective. That's the issue with this forum - the people that are answering, including you, on these "is it OK to walk away" posts are themseleves walking away and having financial problems. They are colored by emotion and anger, like that Tristan's Mom series of posts.

So you have to realize, the others of us that are saying "no bail out" and "buy within your means" or "sorry, but..." are not necessarily being cold and heartless, but realistic and objective. And we all realize it may be us next week. The first rule of life is that life isn't fair - people die young, people become victims of crime, and people lose jobs. You can't legislate any of that. You put in safety nets, which we have. There is not really any option - the economy can't aford a bail out (in spite of the Hillary and Obama campaign promises) and the long term ramnifications to personal responsibility will destroy the economy, and risk must continue to designate the degree of credit an individual gets.

Most people on these "help I'm losing my house" posts are in a panic mode, acting like it's the end of the world. But they don't realize how good they have it compared to the rest of the world. They will definetly take more out of the system then they've given. Be thankful for that, take your medicine, and in 10 years move into another house (and, for some, repeat the process over again).