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Old 02-20-2009, 08:25 AM
 
95 posts, read 217,063 times
Reputation: 41

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Quote:
Originally Posted by KerryB View Post
Well, I guess we'll just try to ride it out & see if the bank can work with us. We could stay put, but its not really in our best interest job wise, so I guess we're basically stuck with a crummy job, lower income in a less desirable town on account of the market situation. Stinks, but thats the gamble we took I suppose for home ownership. So, we're the ones who are ultimately to blame for this since we took the property for better or for worse.

If the bank doesnt wanna play ball, we're pretty much screwed. So I think it will be in everyone's best interest to work out something seeing that no one wins if there is a foreclosure. We'll see. It would probably serve us right though.
Sorry, but you took each other for better or worse, not the mortgage. A house is just an inanimate object, yes one can say it has a "personality", but all in all, it's just wood, metal, shingles and plastic all put together.

If you can get a better paying job in this economy and make it better for yourself and your family, why not?

If you do get the job and it's where you want to be, rent an apartment in a nice town or city near or in where your new job is. I mean, after all, is it your fault the economy's in such bad shape? Or crime is up? Or your house isn't valued at what it should be? No, of course not.

So why wouldn't you want to better yourself and your situation.
After all, you said that "but its not really in our best interest job wise, so I guess we're basically stuck with a crummy job, lower income in a less desirable town"
It seems as if you're unhappy with your current situation all around. This is your opportunity to change it. It is NOT ILLEGAL to walk away from a mortgage. It's done all the time.

Get the job, find and move into an apartment in a nice location and let the bank have your underwater house. It's being done countless times as I am typing this. The mortgage bail out that the president is talking about doesn't really apply to you because you want to move away. Renting it out won't cover the mortgage and maintenance costs. If you can rent it at all. (The wife moved out and moved into a rented house in another state. It hadn't been rented in a year. The roof leaked, the hot water heater was blown and the water filtration system needed to be replaced. Apparently the pipes froze sometime before she moved in this winter.) So make sure you factor in repairs and maintenance costs into your equation.

Find yourself a good bankruptcy lawyer and see what he has to say. The initial consult is usually free.
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Old 02-20-2009, 08:35 AM
 
1,788 posts, read 4,147,913 times
Reputation: 1232
Quote:
Originally Posted by SSWM View Post
It seems as if you're unhappy with your current situation all around. This is your opportunity to change it. It is NOT ILLEGAL to walk away from a mortgage. It's done all the time.
People with an attitude like yours are the reason this country is in such financial ruin right now. Whatever happened to being responsible for the things you agreed to do?

Shame on you.
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Old 02-20-2009, 09:26 AM
 
1,872 posts, read 3,454,828 times
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Quote:
Originally Posted by shaxs View Post
What about renting it out? I doubt you will make the total up for mortgage. But, when you move, get an apartment instead that cost less than you were paying. Maybe between the less expensive condo and the difference in rent, you can stay even and afloat without going into foreclosure? Wait out the market and sell when back up? It might be a sacrifice, but it is better than a foreclosure.
I agree with this. We moved to another state for much better jobs and our house in our old town hasn't sold yet. We rented it out for about $350 less than our mortgage, but the renters are super and have all the utilities in their name. We are renting a place here for now that is a bit small, but at least has a garage & shed to store things. It works for us temporarily. The difference in income is making up for the loss we're taking on renting our house out. We are riding out the storm in hopes that the housing market picks up a bit. We will just have to rent out the house and keep renting here until something changes. We've come to the conclusion that in today's age you have to do what you have to do to make things work. Of course we would love to buy a home here and will someday, but for now we are just thankful to have good jobs in a town where the economy is good. Best wishes to the OP. I know times are tough!
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Old 02-20-2009, 10:01 AM
 
1,403 posts, read 3,051,712 times
Reputation: 1303
Quote:
Originally Posted by ZugZub View Post
People with an attitude like yours are the reason this country is in such financial ruin right now. Whatever happened to being responsible for the things you agreed to do?

Shame on you.
Whoa...That's a bit of an overstatement...it took just a little more than some folks walking away from their mortgages to cause the current crisis.

I say shame on you for insinuating that there is some moral obligation for these folks to stay in a sinking ship. There are indeed consequences of walking away from the mortgage but they people don't owe it to anyone to stay with it. Business is business and SSWM is correct that at the end of the day a house is a house and nothing more than an investment.

Don't try and tell me that the bank would have any moral obligation to stay with the mortgage agreement if the conditions weren't profitable for them (unless required to do so by law)...

I'm not advocating that the OP walk away from their mortgage, I'm just saying that shouldn't feel guilty for making a business decision that makes sense for them.
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Old 02-20-2009, 10:27 AM
 
1,788 posts, read 4,147,913 times
Reputation: 1232
Quote:
Originally Posted by broadbill View Post
Whoa...That's a bit of an overstatement...it took just a little more than some folks walking away from their mortgages to cause the current crisis.

I say shame on you for insinuating that there is some moral obligation for these folks to stay in a sinking ship. There are indeed consequences of walking away from the mortgage but they people don't owe it to anyone to stay with it. Business is business and SSWM is correct that at the end of the day a house is a house and nothing more than an investment.

Don't try and tell me that the bank would have any moral obligation to stay with the mortgage agreement if the conditions weren't profitable for them (unless required to do so by law)...

I'm not advocating that the OP walk away from their mortgage, I'm just saying that shouldn't feel guilty for making a business decision that makes sense for them.
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Old 02-20-2009, 11:50 AM
 
25,341 posts, read 37,471,570 times
Reputation: 13261
Quote:
Originally Posted by GEORGIAINMT View Post
I agree with this. We moved to another state for much better jobs and our house in our old town hasn't sold yet. We rented it out for about $350 less than our mortgage, but the renters are super and have all the utilities in their name. We are renting a place here for now that is a bit small, but at least has a garage & shed to store things. It works for us temporarily. The difference in income is making up for the loss we're taking on renting our house out. We are riding out the storm in hopes that the housing market picks up a bit. We will just have to rent out the house and keep renting here until something changes. We've come to the conclusion that in today's age you have to do what you have to do to make things work. Of course we would love to buy a home here and will someday, but for now we are just thankful to have good jobs in a town where the economy is good. Best wishes to the OP. I know times are tough!
That is the attitude the people should have and one day you will be grateful you did what you did. You didn't screw up your credit and did the right thing. I have advised many friends a similar thing and some did the same and others just went for the short sale and will pay the price and let us pay the price too. I have so much more respect for how you did it.
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Old 02-20-2009, 03:00 PM
 
3,583 posts, read 10,242,083 times
Reputation: 5096
Quote:
Originally Posted by GEORGIAINMT View Post
I agree with this. We moved to another state for much better jobs and our house in our old town hasn't sold yet. We rented it out for about $350 less than our mortgage, but the renters are super and have all the utilities in their name. We are renting a place here for now that is a bit small, but at least has a garage & shed to store things. It works for us temporarily. The difference in income is making up for the loss we're taking on renting our house out. We are riding out the storm in hopes that the housing market picks up a bit. We will just have to rent out the house and keep renting here until something changes. We've come to the conclusion that in today's age you have to do what you have to do to make things work. Of course we would love to buy a home here and will someday, but for now we are just thankful to have good jobs in a town where the economy is good. Best wishes to the OP. I know times are tough!
I wish more people were like you. Rep points to you for your integrity and long range thinking
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Old 02-20-2009, 08:47 PM
 
95 posts, read 217,063 times
Reputation: 41
Quote:
Originally Posted by GEORGIAINMT View Post
I agree with this. We moved to another state for much better jobs and our house in our old town hasn't sold yet. We rented it out for about $350 less than our mortgage, but the renters are super and have all the utilities in their name. We are renting a place here for now that is a bit small, but at least has a garage & shed to store things. It works for us temporarily. The difference in income is making up for the loss we're taking on renting our house out. We are riding out the storm in hopes that the housing market picks up a bit. We will just have to rent out the house and keep renting here until something changes. We've come to the conclusion that in today's age you have to do what you have to do to make things work. Of course we would love to buy a home here and will someday, but for now we are just thankful to have good jobs in a town where the economy is good. Best wishes to the OP. I know times are tough!
I know folks who have done this. Their primary home is in FL. Unfortunately the job situation down there isn't too good. So they took jobs up here. And put it up for rent. It finally rent out, but now they're behind in the mortgage payments because they can't afford to rent in the Boston area ($1250/mo + utilities for a 2 bedroom apartment) and a $1900/mo mortgage in FLA. (they're only getting $750/ mo for rental income as there's a glut of real estate for rent down there). They just can't make ends meet. So these nice folks are caught between a rock and a hard place. They probably shouldn't have bought the place in FL for the money they did, but their home got destroyed by a hurricane and they needed a place to live. And of course the real estate prices were high back then and jobs were plentiful.

So it seems no matter what folks try to do, they end up with a raw deal. They didn't want to walk away from their mortgage either and are going to pay the price for it. The president's plan might be good for them, though I'm not sure if you have to actually live in the property or not in order to qualify for help with your mortgage.

"ZugZub People with an attitude like yours are the reason this country is in such financial ruin right now. Whatever happened to being responsible for the things you agreed to do?
Shame on you."

The reason this country is in such financial ruin is from the rich trying to get richer on the backs of the poor and having it backfire in their faces.
Shame on them
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Old 02-21-2009, 04:01 AM
 
739 posts, read 2,695,187 times
Reputation: 308
Quote:
Originally Posted by SSWM View Post
The reason this country is in such financial ruin is from the rich trying to get richer on the backs of the poor and having it backfire in their faces.
Shame on them
Please. Come on. This is a ridiculous statement. The reason the economy is in shambles is because people are living beyond their means and do not take responsibility for their decisions. There will always be rich, poor, and middle class. That is capitalism. That is what the country is founded on.

I am 26 and I am ashamed of my generation. A generation of people wanting something for nothing. A generation of people not taking responsibility for their actions. Granted, I am generalizing here but it is just so frustrating to see all these people who think they are entitled to something when in fact you have to work for it and live up to your obligations.

If you are referring to all these mortgage companies who "preyed" on people with predatory loans, then I highly disagree with you. No one forced people into houses they could not afford. No one forced people to sign silly loans with things like ARMs that were going to bite them in the butts. They made the decisions. I read or heard somewhere that more people spent more time researching their appliances that they did reading and researching their loan docs... How is that for ridiculousness?
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Old 02-21-2009, 05:43 AM
 
95 posts, read 217,063 times
Reputation: 41
Quote:
Originally Posted by shaxs View Post

If you are referring to all these mortgage companies who "preyed" on people with predatory loans, then I highly disagree with you. No one forced people into houses they could not afford. No one forced people to sign silly loans with things like ARMs that were going to bite them in the butts. They made the decisions. I read or heard somewhere that more people spent more time researching their appliances that they did reading and researching their loan docs... How is that for ridiculousness?
Actually no, I'm not. I'm referring to the the companies who underwrote the loans, insured the loans, and then made credit default swaps.

So let's see, the company underwrites the loan - they make money.
The company insures the loan in case something happens and the mortgagees can't be pay it back - they make money.
The company packages up possible bad mortgages and sells them - they make money.

The federal government changes the accounting laws to use the insurance companies model of the worth of property.
The banks are forced to use this model and lose around 1/3 of the value of all the own and wrote mortgages for - they lose money (a lot of money).
People try to sell their homes and find out that they aren't worth what they paid for them. That they're going to sell their house and still pay for it after it's sold. They don't sell it (would you)?
The house goes into foreclosure. As do tens of thousands more.
The banks lose money.
The people file for bankruptcy in the interim to still have a place to live and save some money. They're advised by their lawyers not to pay any bills.
The credit card companies raise their rates to the max (39%).
The banks lose money -they're also the credit card companies, you may have heard of them Bank of America, Chase, Citigroup, Wells Fargo etc...
The banks freeze credit. They want to hold onto the money they have.
The gov't steps in to help them out and try to hold off an international banking crisis. It's too late, it's already started.

AIG is tens of billions in the hole - they underwrote the mortgages, insured the mortgages and bundled the credit default swaps. They didn't have enough money left to pay themselves and the other banks.
The federal gov't stepped in.
Companies can't afford to do business without credit, they lay off or close altogether.
Unemployment goes up.
The banks lose more money from bad business loans.
World governments step in to bolster the world economy. It's still not enough.
More people can't pay their bills because unemployment isn't enough.
They can't pay their mortgages or credit cards.
They go into foreclosure.
The banks lose more money.
The state and city governments can't pay their bills due to lost tax revenue and more people collecting unemployment. They raise unemployment taxes on the existing companies to nine percent.
The federal government steps in again.
This is where we are now.

What's next?
More people can't afford their bills and don't pay. See, it's not that they don't want to, it's that they can't.
Stores are effected and close (this is just starting to happen). The big anchor stores are next (Sears, JC Penny, Macy's). The malls will start to close because they can't afford to pay their mortgages with their anchor stores gone.
More people unemployed.
More people can't afford their mortgages, utilities, rent, credit cards etc...
Service industries get effected. Restaurants, smaller grocery chains, pizza and fast food places.
More people unemployed.
You get the picture.

So, it's not just irresponsible people, it's irresponsible companies too.
Here's a couple of old addages - "What goes around, comes around". or "As ye sow, so shall ye reap".
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