Did most people see the Phoenix area focused 60 Minutes report on mortgage walkaways? (Gilbert: short sale, real estate)

[algia]

Don't be surprised by this...if "credit" wasn't so "readily" available at every corner and ppl sucked into it since they turned 17, this would have never been an issue here. My grandma bought her apartment back in Europe with guarantors, (other ppl that signed along with her) for her 30yr mortgage, not sucked in by the "no interest for 12 months" or worst, paid the whole thing herself no issues regardless of ups and downs financially, house always came first.

Here, ppl only create this "equity" idea so they CAN buy all the other toys....and are using their house against that, really stupid IMO....I'd rather rent, and have extra money to buy all the other toys up front, and not drown into endless debt....plus why in the world would I want to buy something that won't be mine for many months and that I'd be paying double when counting interest in!??? I really wish ppl would wake up and realize just how much money they are WASTING on interest! & how many more things they "could" buy with all the extra money they spend on interest.

This is the kind of stuff that comes to the surface when all the greed is out of the way and "the morning after" comes around and shows you just what a big mistake you made buying in that market, not to mention the OVER building epidemic.....etc etc etc, this is only a SIDE EFFECT.....I was highly surprised by the other article on Yahoo yesterday talking about how "walking away" from your mortgage "HELPS" the economy!!!! WHAT???

[Howard Roark]

Algia, I know what you are saying. I got out from under my house in the 1990s after losing 20% and I paid the difference between what I owed and what I sold. Yes, it hurts to be a responsible citizen when most people have been bailed out for stupid decisions. It makes me very angry. But note that if someone stops payments on the house, the bank can simply take it way. Unless the delinquent person damaged or vandalized the house, the value is still there and now the bank has it back. So the loss is not a big deal. I'm a pure capitalist and I want to see capitalism at work. That is, let the business that made a bad business decision (loaning out money to an unethical person) suffer. Let that business go bankrupt. The competitors who discriminated in their loans to make sure the person can pay it back will survive. That's how it should be.

Arizona is a non recourse state. If I was a bank, I would certainly not give out home loans in this state.

Unfortunately the bailouts of the banks have not taught them a lesson. There should have been NO bailouts. Direct your anger at our government for subsidizing irresponsibility.

[SOON2BNSURPRISE]

The piggy bank syndrome hits again.

Seems that so many people used the home for a piggy bank. Many were so happy that the piggy bank kept getting filled up again each year without them doing so much as just holding on to the piggy bank. Buy a home for X and it will be worth Y in just a few months.

I know one guy that financed his new truck, wifes new car, home office, and a few trips from tapping that piggy bank. He now claims that he is debt free accept for the house that has declined in value. Yes the Piggy bank bought all that he owns and he is complaining to the bank that they need to give him a deal. His home loan needs to be looked at because it is way out of line with the value of his home.

Maybe what the bank needs to do is ask for all that stuff back before they make a deal with him.

My thought is that refinancing should be limited to getting a better rate and not pulling money out of the piggy bank. Do away with the piggy bank mentality. If you refinance then equity is not part of the deal.

[smokemaster]

and of what little HELOC money went to improving the house; about 60% of that is in violation of codes/permits, looks like ****e, and possibly ruined the look of the whole block.

[FunkyPioneer]

Originally Posted by AZM

Isn't it just great! People took out a second mortgage and bought all kinds of toys like jetskis, quads, boats, fancy cars and consolidated their bills. Now they walk away from the mortgage that they can still afford, keep their toys and let the bank eat it. And everyone else get to pay it back through bank bailouts...can you say DIRT BAGS?

Screw the banks, they took billions of our tax dollars to save their butts. Thats my money that they took. I say walk away and let em burn! Burn baby Burn!

http://thegreatfallarizona.blogspot....king-away.html

[ITChick]

Originally Posted by azjack

I missed it on television, but watched it online.


Mortgages: Walking Away - 60 Minutes - CBS News

Thank you for posting that excellent link!

I think that guy who was the main focus in the video says at the end that he was "living within his means" has no clue what that really means. If he did, he never would've bought the house in the first place.

[ITChick]

Originally Posted by algia

.I was highly surprised by the other article on Yahoo yesterday talking about how "walking away" from your mortgage "HELPS" the economy!!!! WHAT???

If you can find that Yahoo article link, please post it as I would love to read it!

[ITChick]

Originally Posted by las vegas drunk

The first 2 people profiled on here are downright scumbags. They can easily pay their mortgages but are choosing not to. They have no morals no matter how they try to justify it. However, I do respect the last guy profiled because he did not go the route of the first two.

Finally something we can agree on!

[ITChick]

Originally Posted by smokemaster

I saw it thanks to AZJack. QUESTION: Where is that cute bungalow that the second couple paid 400K for, and is now worth 80K? I saw "2012" on the house number. Perhaps near Thomas, just West of the 51. Could we have a city-data investigation on this please?

Hee hee! I'd like to know too! It really looked nice.

[smokemaster]

Originally Posted by ITChick

Hee hee! I'd like to know too! It really looked nice.

I almost bumped the thread earlier to get an answer. Now I've got to know.
Everyone seemed to be familiar with the Jefferson Hotel..............