Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Many people are debating whether it's time to walk away from their mortgage. A foreclosure could mean 7 years of bad credit or if you refinanced, the lender can sue you for the amount due.
Here's an interesting website that can help you figure out what to do.
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?
Lol, let me explain.
Piece of paper is our fiat currency (money). Money should simply just be a medium of exchange, that's it. Nothing more, nothing less. Instead we are indentured servants slaving away at debt forever.
Our monetary system is debt based. Every dollar originates from debt.
The elite are our lovely banksters who we are slaving away our productivity to.
Money is issued by the Federal Reserve which is owned privately. Their actions aren't transparent. They have the power to increase and decrease our money supply.
During the bubble they let the money flow, now they have tightened the money supply. That's why businesses are shutting down, there are layoffs, people are defaulting etc.
I agree, but that doesn't make it any less irresponsible for people to default on loans they signed to pay. If you couldn't handle the payments, you shouldn't have signed the mortgage. Yes, I realize that a SMALL percentage of people have some sort of hardship that was not under their control, and now need to default, but the majority of people walking away were either stupid enough to buy too much house, or stupid enough to sign for a usurious loan rate, or are just peeved that their house's perceived value has dropped and they now owe more than it can be sold for. Yes, those people are irresponsible and shouldn't receive any breaks.
It's not fair for those of us who are financially responsible and haven't gotten in over our heads, and haven't accrued debt to have to pay for the greediness and irresponsibility of others. And yet, we are...and we are getting NO breaks for our responsibility, whilst the idiots are getting off easy.
Thanks ever so much.
I happen to be one of the financially responsible folks you speak of also. However, my point is there are many folks who didn't take homes they couldn't afford but stayed within their means. Then many lost their jobs and when that happens or illness strikes what are they supposed to do? As far as the banks, no pity here for any of them. They're enjoying their bailout money with parties, etc. Obviously you think it's ok how they handled this money.
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.
You didn't ask what caused it (and in this case, the government had a huge hand in causing it) or if homeowners are more victim or villain. You asked how it affects ME PERSONALLY. I explained that.
I have only two more years to pay on my house. My husband is out of work, directly related to our national financial crisis. We're behind on our mortgage payments but my bank is working with us. More foreclosures and bankruptcies are bad for everyone, as a whole and individually.
Piece of paper is our fiat currency (money). Money should simply just be a medium of exchange, that's it. Nothing more, nothing less. Instead we are indentured servants slaving away at debt forever.
Our monetary system is debt based. Every dollar originates from debt.
The elite are our lovely banksters who we are slaving away our productivity to.
Money is issued by the Federal Reserve which is owned privately. Their actions aren't transparent. They have the power to increase and decrease our money supply.
During the bubble they let the money flow, now they have tightened the money supply. That's why businesses are shutting down, there are layoffs, people are defaulting etc.
Ohhhhh, now I understand (and am slightly embarrased)! Thank you!
Whenever I post about walking away from debt, several people like to jump on their soapbox and tell the tale of how they lived life responsibly, bought a home they could afford, make the minumum payments on their credit cards every month and so on.
That's all fine and dandy, however, you should know that it is mathematically impossible to pay-off all the debt that currently exists in our economy. It is never, ever going to get paid off.
This idea that everyone "needs to pay what they owe" is akin to telling the passengers on the Titanic to all grab their coffee cups and run below to start scooping water out of the ship to keep it afloat. Their desperate efforts would have made no difference to the fate of the ship. The water was filling the ship too fast, and eventually sucked it into the abyss.
However, let me say that the banks and credit card companies very much appreciate your noble and honorable thinking. Their goal is to keep you and everyone else in this country in debt peonage, slaving away the rest of your feeble years to pay interest on debt. That's how they make money, you see?
And they also appreciate you pointing fingers and blaming your neighbors. This suits them just fine, because then Bank of America, for example, doesn't have to reveal how much it paid executives in bonuses. Bloomberg.com: U.S.
So ZugZub, Suzie02, and others like you, on behalf of Citibank, Bank of America, JP Morgan Chase, Wells Fargo, and AIG, I want to thank you for your loyalty, your honesty, your patronage.
So ZugZub, Suzie02, and others like you, on behalf of Citibank, Bank of America, JP Morgan Chase, Wells Fargo, and AIG, I want to thank you for your loyalty, your honesty, your patronage.[/quote]
And don't forget, all of those big banks will be inviting them to their million dollar bashes. My mother always taught us watch what you say, such as downing others who have misfortune, it might come back to haunt you.
Ohhhhh, now I understand (and am slightly embarrased)! Thank you!
Honestly don't be embarrassed, most people don't understand where/how our money originates from. It's a complex process which imho is done on purpose, so the masses don't understand it.
Piece of paper is our fiat currency (money). Money should simply just be a medium of exchange, that's it. Nothing more, nothing less. Instead we are indentured servants slaving away at debt forever.
Our monetary system is debt based. Every dollar originates from debt.
The elite are our lovely banksters who we are slaving away our productivity to.
Money is issued by the Federal Reserve which is owned privately. Their actions aren't transparent. They have the power to increase and decrease our money supply.
During the bubble they let the money flow, now they have tightened the money supply. That's why businesses are shutting down, there are layoffs, people are defaulting etc.
Hi Sheenie2000,
Actually the Federal Reserve isn't tightening the money supply. The Federal Reserve is actually trying its' hardest to expand the money supply with near zero interest rates and lending money to banks.
There are two entities that traditionally expand/contract the money supply. The Federal Reserve through open market transactions, and the commercial banks such as Citi, BofA, Wells, etc (through fractional reserves by lending). Unfortunately, a third entity had increasingly become involved with banking when brokerages created an "unregulated" market for derivatives (CDOs, CDSs, etc., etc.) that was also traded like "money".
So, as we all know now, CDOs, and CDSs are worth junk, and therefore that money supply is contracting violently, commercial bank money supply is contracting with defaults and bank runs, and the only entity trying to expand the money supply is the Federal Reserve.
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.
California is massively raises taxes this year. The government is bailing out banks. Obama plan will help a few homeowners who aren't really even in that bad of shape at the moment. It won't help many at in California whose taxes are going up by about $800 this year. My LTV ratio is about 230% after 24 months of living in my home. I did my calculations and figured at 4% a year assuming a bottom in 2010 that says 25 years before my house is worth what I bought it for. I also calculated that in about 5 years I could afford to pay cash for the entire purchase price of a home similar to mine if I rent a place for half the price and save the $1500 a month + the 30k saving up during the walk away process. I won't be living in a shelter I can assure you of that, but why should I stay? None of the plans help me and my taxes are already being raised and will probably be raised more to pay to bail out people who got hurt way less than I did by this crisis. You'll be happy to know I've already quit paying my mortgage should have an NOD filed in about 3 weeks$.
Should be moving about 4 months after that... I've always been responsible prior to this(had an 810 FICO score as of Jan. 1st when I stopped paying), but clearly with the amount values have fallen all us who bought between 04-06 were being ripped off. Its kinda hard to care when the government is a big player in the process that caused you to get severely ripped off. This was a legal ponzi scheme set up by the government, banks, and home builders. They are every bit as guilty as Madoff and that guy from Texas.
dgrilley: I agree in your situtation it makes financial sense to walk away from the mortgage. Your credit rating will suffer but like you said if you can save up enough to pay for a house outright in 5 years you wont need to worry about that. Others may say this is irresponsible but I say you would be an idiot to continue paying the mortgage.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
