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Old 03-06-2009, 07:01 AM
 
Location: Some place very cold
5,500 posts, read 19,522,360 times
Reputation: 4209

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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.

Pay Or Go: Walk away from your mortgage calculator
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Old 03-06-2009, 07:05 AM
 
1,788 posts, read 4,150,406 times
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Why are you perpetuating this irresponsibility? *sigh*
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Old 03-06-2009, 07:23 AM
 
Location: North Cackelacky....in the hills.
19,556 posts, read 18,746,173 times
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Why is it 'irresponsible' to make a business decision(a mortgage is a business contract) based upon whether it benefits you or the other party more???

I often wonder if those who think it 'irresponsible' to decide to take the 'second option' in your contract would demand a business owner also simply stay running even though they will lose everything???

By the way,I did the little calculator and we would need our home to INCREASE in value 21% to make it feasible to stay...
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Old 03-06-2009, 07:57 AM
 
Location: Over the Rainbow...
5,963 posts, read 10,499,069 times
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Quote:
Originally Posted by ZugZub View Post
Why are you perpetuating this irresponsibility? *sigh*
Sigh...WHY are the banks taking big bail-out bucks and spending it on big trips, etc......talk about irresponsibility!!
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Old 03-06-2009, 08:17 AM
 
1,788 posts, read 4,150,406 times
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Quote:
Originally Posted by Alaskapat528 View Post
Sigh...WHY are the banks taking big bail-out bucks and spending it on big trips, etc......talk about irresponsibility!!
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.
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Old 03-06-2009, 08:49 AM
 
2,383 posts, read 6,082,406 times
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The economic situation in the USA is and has been out of wack for about 10 years.Right now predicated on everyone making $40,000.I asked my wife a long time back how people can sustain there way of life,add it up $800 plus home,rent,ins $175,car pay $300,property taxes in $250 plus and so on.When most people earn $10-15 per hour and person gets sucked into home they cannot afford,recipe for disaster.I had no trouble moving along on $1.00 per hour in 1955,low rent decent housing $35,as wage progressed they had medium priced units,auto used $50,new $1800 etc.Had to get co-signer to borrow any money,20 percent down on home.Bought first home for $12500 with $100 down and $1.50 per hour wage.Hid from bank fact of where down payment came from,paid both parties back in 18 months,impossible today.Everything was proportional to income.The price of homes are for the most part out of reach of average worker.So they have jumped in when they shouldn't.
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Old 03-06-2009, 08:51 AM
 
Location: Texas
447 posts, read 1,571,770 times
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Quote:
Originally Posted by ZugZub View Post
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.
It really doesn't have anything to do with what is fair at this point. Unemployment is at 8.1% today. If someone has to decide whether to stay in their home or eat, then the decision is easy. It's not like the bank is not getting anything back- they're getting the house. Remember, the bank also signed on regarding the home's value. Why should the homeowner be the only one to take the fall in value?

If someone gets help, any sort of help, why would you begrudge it? Okay, you don't need help, kudos to you. But there are people out there (lots of them) that do. I don't get this mentality of "well, I did my part, I'm doing OK, I'm responsible, so no one else deserves help"
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Old 03-06-2009, 09:01 AM
 
Location: Tampa, FL
2,638 posts, read 10,505,529 times
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Quote:
Remember, the bank also signed on regarding the home's value. Why should the homeowner be the only one to take the fall in value?
For the same reason that the homeowner reaps the rewards of a gain in value.
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Old 03-06-2009, 09:03 AM
 
930 posts, read 2,122,028 times
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You are pretty much describing the exact reason that "Credit Score" exists. The banks are evaluating your risk and they don't want to loan money in the future to someone who walked away from their loan in the past. And yes the same principle applies to business owners.

I think you are going to see much tougher regulations in the future for people who walked away. So if you are okay bunking with mom and dad you should be fine.
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Old 03-06-2009, 09:16 AM
 
1,788 posts, read 4,150,406 times
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Quote:
Originally Posted by EM1956 View Post
I don't get this mentality of "well, I did my part, I'm doing OK, I'm responsible, so no one else deserves help"
No, it's the mentality of "I don't want your hand in my pocket yet again, take care of the mess you willingly made for yourself."

If I WAS "doing okay" it wouldn't be an issue. But the irresponsibility of the masses has caused me an unfair financial burden. How is that equitable?
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