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Old 03-06-2009, 03:44 PM
 
11,599 posts, read 17,576,826 times
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Quote:
Originally Posted by EM1956 View Post
Ultimately, on a personal level, how is someone else walking out on a mortgage REALLY going to affect you? And I mean on a personal level, not a national or world wide level.
You can't be that naive. Higher taxes, reduced property value, more inflation (devalued purchasing power), less city services, less federal services, bigger bank fees, hgher bank interest charges, higher closing costs an home purchases, less avaialable credit for borrowing, loss in 401k's value do to tightening credit, sure-to-be announced government decision on postponing social securety retirement age (to pay off deficit), and for some - unemployment...should I go on?

You better believe if a person defaults on a mortgage, others will pay for it personally.
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Old 03-06-2009, 04:15 PM
 
Location: Texas
447 posts, read 1,574,221 times
Reputation: 198
Quote:
Originally Posted by suzie02 View Post
I don't know where you have been living. Before lenders would give money to anyone with a pulse. Now if you do not have a FICO over 720 you do not qualify for the lowest rate.

BTW. I am starting to see a pattern here. You keep attacking people and when someone says something that you can not dispute you move on to the next attack. I wonder if that is a definition of trolling.

On my ignore list you go.
Since I'm on your ignore list, I don't suppose you will see this.... but I didn't attack anyone. The question was "should you walk or should you stay" regarding mortgages, to which I added "how does it affect you personally if someone defaults- I was specifically asking about how John Doe leaving his mortgage affects Susie Doe.

Not nationally, not globally, just on a personal level.

And if you had good FICO scores 6 months ago, and you still have good FICO scores, your ability to secure credit hasn't been diminished greatly. It is the people with lower scores that are struggling right now, (and maybe rightfully so-- too much money given to people with low scores)
As far as I can tell, the credit tightening has affected he people with lower scores, because if your score is above 700 or 750 you can still acquire credit. If your score is below 720, perhaps you shouldn't be getting the top rate. Just saying. Although, I don't really care that much about credit scores, because I owe no debt except for my house. Plan to keep it that way also.

I am in Texas, and yes, we've not been hit as bad as someplaces. However, I did just spend the last 4 years in London, and if you think it's bad here, you should look into what's happened there.
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Old 03-06-2009, 04:16 PM
 
Location: Texas
447 posts, read 1,574,221 times
Reputation: 198
Quote:
Originally Posted by Dd714 View Post
You can't be that naive. Higher taxes, reduced property value, more inflation (devalued purchasing power), less city services, less federal services, bigger bank fees, hgher bank interest charges, higher closing costs an home purchases, less avaialable credit for borrowing, loss in 401k's value do to tightening credit, sure-to-be announced government decision on postponing social securety retirement age (to pay off deficit), and for some - unemployment...should I go on?

You better believe if a person defaults on a mortgage, others will pay for it personally.
Ah, but the question is who is more at fault? The banking/financial system or the individual?
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Old 03-06-2009, 05:04 PM
 
Location: WV
617 posts, read 1,870,177 times
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Quote:
Originally Posted by EM1956 View Post
So you still haven't said how someone walking away from their mortgage cost you money. The market today is what is causing your problem, not the people.
It affects each of us personally because none of us live in a bubble. We're all interconnected, even financially. It will affect each of us differently, and at different times, but it still affects us.

For me, my husband and three sons are struggling to find construction work. Projects that were planned for after the first of the year have been "postponed" indefinitely. Some businesses are struggling and can't afford to move forward while others are taking a wait-and-see attitude so that they don't overextend in this precarious economy. And families that were going to build or add on to existing homes are sitting tight, worried that they'll be the next ones to lose their jobs.

Unless you have a very hefty nest egg, how will you survive losing your job? How long can you live on your savings? The more people default on their loans and the more our government throws good money after bad trying to bail out every industry in the country, the more likely you will lose your job eventually, too. Then you'll know exactly how it affects a regular person, personally.
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Old 03-06-2009, 05:17 PM
 
Location: Charlotte, NC
2,193 posts, read 4,457,404 times
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I agree w/ the OP.

Our system is designed for people to default.

Isn't it ridiculous that people can't do things just because of a piece of paper? We still have our arms, legs and our health yet productivity has stagnated. All because we don't have a piece of paper that is only issued by the elite.

Absolutely ridiculous.
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Old 03-06-2009, 05:31 PM
 
756 posts, read 1,949,462 times
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Quote:
Originally Posted by sheenie2000 View Post
I agree w/ the OP.

Our system is designed for people to default.

Isn't it ridiculous that people can't do things just because of a piece of paper? We still have our arms, legs and our health yet productivity has stagnated. All because we don't have a piece of paper that is only issued by the elite.

Absolutely ridiculous.
Sorry, I am not understanding your post at all? What piece of paper are you talking about? Issued by the elite? Who is the elite?
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Old 03-06-2009, 05:46 PM
 
Location: Texas
447 posts, read 1,574,221 times
Reputation: 198
Quote:
Originally Posted by scorpy01 View Post
It affects each of us personally because none of us live in a bubble. We're all interconnected, even financially. It will affect each of us differently, and at different times, but it still affects us.

For me, my husband and three sons are struggling to find construction work. Projects that were planned for after the first of the year have been "postponed" indefinitely. Some businesses are struggling and can't afford to move forward while others are taking a wait-and-see attitude so that they don't overextend in this precarious economy. And families that were going to build or add on to existing homes are sitting tight, worried that they'll be the next ones to lose their jobs.

Unless you have a very hefty nest egg, how will you survive losing your job? How long can you live on your savings? The more people default on their loans and the more our government throws good money after bad trying to bail out every industry in the country, the more likely you will lose your job eventually, too. Then you'll know exactly how it affects a regular person, personally.
I certainly agree with you on most of this post. However I still believe that it is corporate greed that has caused or certainly escalated the problems with the economy. Sure, the homeowner should know how much he can afford, but also shouldn't the bank/financial institution. No one forced them to give away loans to people that couldn't afford them. I guess I take the stance that for most cases, the homeowner is the victim, not the villan.
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Old 03-06-2009, 05:50 PM
 
11,599 posts, read 17,576,826 times
Reputation: 17335
Quote:
Originally Posted by EM1956 View Post
Ah, but the question is who is more at fault? The banking/financial system or the individual?
All probably equaly. But it doesn't really matter. Fault and fairness are irrelevant. Even for those that truly have sad stories - medical problems, loss of jobs, etc - you can't legislate or fully entitle that away.

I don't support bank or corporate bail-outs any more than I support individual home-owner bailouts. Corporations that can't pay their debts should go out of business, people that can't pay their morgage should not be allowed credit for a very very long time. Go ahead and walk away, but I want those people to, for lack of a better word - suffer. I don't want them to buy another house, another car, another big screen TV. I want them to either work like crazy when things get better and pay back their debts or stay in a relative level of poverty.

That's not to say I want to see anyone without a roof over their heads - I believe in the "safey net" system in place. Unemployment benefits, food stamps, shelters. I gladly support it with my tax dollars. I want those that are walking away to know the only place left for them until they dig themselves out will be a homeless shelter, not a new house, and then maybe they will reconsider walking away.
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Old 03-06-2009, 05:59 PM
 
Location: Some place very cold
5,500 posts, read 19,560,687 times
Reputation: 4209
EM1956, You are absolutely right, and don't let anyone tell you otherwise. People bought homes thinking they were an investment that would continue to go up in value. Banks and the government created an artificial housing bubble. They lowered interest rates and practically gave money away, making it easy for anybody to buy a home for $500,000. They didn't even need to put up a downpayment. This pushed up demand and thus pushed up the cost of homes. All of this happened because our dear government dismantled all the regulations that kept the banking industry under control. Anyhow, this is old news and anybody who reads the paper should have some basic knowledge on how all this worked. You don't need to keep defending your position.. W.

Last edited by Woof Woof Woof!; 03-06-2009 at 06:17 PM..
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Old 03-06-2009, 06:21 PM
 
Location: Some place very cold
5,500 posts, read 19,560,687 times
Reputation: 4209
Quote:
Originally Posted by Dd714 View Post
ACorporations that can't pay their debts should go out of business, people that can't pay their morgage should not be allowed credit for a very very long time. Go ahead and walk away, but I want those people to, for lack of a better word - suffer. I don't want them to buy another house, another car, another big screen TV.
Credit card companies love to extend credit to people that have declared bankruptcy. Why? Because they can't go bankrupt again and because these are people who don't mind making the minimum payment on a credit card for the rest of their lives.

When you stop paying on a credit card, the cc company starts adding on interest and late payment fees like crazy. After 180 days, they have to write off that loan, but by now, the debt has doubled, maybe tripled in size, and the cc companies get to write off even more money. Sounds like a good deal for them, doesn't it?
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