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Old 07-03-2010, 03:19 PM
 
13,515 posts, read 14,527,867 times
Reputation: 7690

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Quote:
Originally Posted by Obrero View Post
Why do you hope this?
Simple. Because people should do everything they can pay their debts. Not bail out when it's not convenient or no longer profitable.
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Old 07-03-2010, 03:48 PM
 
1,110 posts, read 3,822,555 times
Reputation: 421
Our own government encourages their people to overspend. Our own government then bailouts all the wall street banks and finances. No wonder people feel its OK to declare bankruptcy. Why not? Our own government encourages this behavior.

Until the people we elect stop doing this, will the same people stop doing this. Our country is in big trouble because our own elected officials are corrupt and encourage bad behavior. It will take centuries to fix.
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Old 07-04-2010, 07:29 AM
 
Location: NJ
9,251 posts, read 20,314,310 times
Reputation: 6386
MSN Money, June 24, 2010

New penalty for homeowners who walk away

With millions of Americans owing more on their mortgages than their houses are worth, many are opting for a "strategic default" -- allowing a house to go back to the bank, even though the borrower may be capable of making the payments.

In some states, those who choose a strategic default face lawsuits from lenders anxious to collect what they're owed. Now, the quasi-governmental agency Fannie Mae has announced it's upping the stakes by barring those who walk away from getting an FHA-insured loan for seven years.

"Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting," said Terence Edwards, executive vice president for credit portfolio management at Fannie Mae.

Fannie Mae also said that in states where such lawsuits are allowed, it plans to join lenders in suing borrowers who default. That won't apply to all borrowers -- just those who, in the company's opinion, are able to pay their mortgage but aren't willing. The company said homeowners who make a good-faith effort to repay their loan or have extenuating circumstances won't be affected.

The other big mortgage guarantor, Freddie Mac, already requires a five-year wait for those who strategically default. In the latest quarter, Fannie Mae and Freddie Mac insured about 96% of all mortgages issued, but insure only about half of all mortgage debt currently outstanding in the U.S.
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Old 07-07-2010, 07:55 AM
 
3 posts, read 3,899 times
Reputation: 10
We sold our house FSBO on craigslist in 2 days (well, we had an offer in just 2 days after posting on craigslist). Just closed last week. I could not believe it, honestly. We were very lucky. The whole process from start to finish too under 5 weeks.
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Old 07-07-2010, 08:01 AM
 
Location: NJ
12,284 posts, read 31,042,847 times
Reputation: 5195
Quote:
Originally Posted by doc1 View Post
Simple. Because people should do everything they can pay their debts. Not bail out when it's not convenient or no longer profitable.
I do believe hell doth froze over. I agree with you.
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Old 02-12-2011, 12:35 PM
 
Location: New Jersey
48 posts, read 113,941 times
Reputation: 25
Quote:
Originally Posted by todd72173 View Post
Our own government encourages their people to overspend. Our own government then bailouts all the wall street banks and finances. No wonder people feel its OK to declare bankruptcy. Why not? Our own government encourages this behavior.

Until the people we elect stop doing this, will the same people stop doing this. Our country is in big trouble because our own elected officials are corrupt and encourage bad behavior. It will take centuries to fix.


Exactly Todd - we learn from our leaders. The powers-that-be have taught this behavior and people are following by example.

Especially in the current climate, people are sick and tired of big business, and banks being saved and made whole while people are left to suffer with phony plans proposed to help. The banks got bailed out by the Treasury AND they will get their property back from the homeowner. Frankly, this sickens me.

Right or not, I understand and sympathize with "the people."
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Old 02-12-2011, 04:13 PM
 
Location: Montclair, NJ
454 posts, read 947,372 times
Reputation: 137
Not sure how they determine who's "walking away" or making a strategic default without the intervention of a bankruptcy court. One thing's for sure, if you default you are going to have a hard time getting a home loan for quite some time. I don't think someone should be on the hook for balance of the loan due in perpetuity. The bank made what should have been a calculated risk with interest rates reflecting that risk and if they lost, they lost. Without fannie and freddie backstopping them, the true risk will be reflected in mortgage rates, which is a good thing so you and I aren't paying for it. The downside is that higher interest rates will further depress prices and really hurt unsold inventory.
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