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No..... Technically it is not. The bank took 6 years before it asked the person to leave. Its all very legal.
How do you reconcile the concept of not meeting your obligations as agreed? The bank agrees to loan you a certain amount of money on the condition that you repay the bank a certain sum each month for a certain number of years.
Technically, you may not be stealing. But without a doubt, you are a deadbeat. Just because someone is slow to ask you to repay a debt does not mean that the debt isn't owed.
How do you reconcile the concept of not meeting your obligations as agreed?
Simply breaking a contract, nothing more.
Quote:
Originally Posted by dblackga
But without a doubt, you are a deadbeat.
You can classify people however you like. I simply call it a default. If someone looses their job, single mom gets divorced, husband dies, owner needs to move, cant sell house, etc. I wouldn't classify them as deadbeats, its simply a default, just like every other default. Banks dont care..... I dont see why you do.
I'm curious to know the where the origins of America's obsession with owning houses comes from (you know, the American dream: big house, fancy cars, etc.). I do not see the appeal of being a slave to a bank for 30 years. I see people with mortgages claim that they own their homes, but they don't own the house (the bank technically does). Let's see what happens when they miss 2 mortgage payments. They no longer own the house anymore. I would not be surprised if the American dream was manufactured by big banks and the automobile industry.
Then there's the group of people who see housing as a great investment, where the property value always goes up. Based on the historical data, it's simply not true. Property values just keep pace with inflation. There are just people out there who should NOT have gotten themselves into a mortgage (e.g., beyond their budget, unstable job, etc.).
since the beginning of time owning land, property, a place of their own has always been something people have sought, the cause for wars, etc so the idea of people wanting to own their own property isn't crazy.
i know it can be debated all day long whether its better to buy or rent but in my experience renting is more expensive than buying, especially in recent years as the foreclosures and short sales have turned many ownes into renters.
my mortgage is $800, to rent a comparable place would probably cost me anywhere from $1100 to $1300. I'm currently renting out my place for $1200 so having someone pay my mortgage and put $400 in my pocket each month.
as far as why to own, because i have pets and i know what a pain in the butt it is to try to rent with pets. because i can take care of my home like i want and dont have a landlord showing up every 3 months to inspect the property and how im living. so i control the payment and a landlord cant raise rent on me. there's plenty of reasons to own a home, that said is it for everyone no.
How do you reconcile the concept of not meeting your obligations as agreed?
There is no "obligation" to pay - it is an agreement where you pay or the bank can take the house. The bank foreclosing is simply one possible way for the contract to be fulfilled.
Frequently banks would rather collect interest than take the house, in order to avoid the costs and hassles of foreclosing, maintaining and selling the house. It is a purely financial transaction, and the bank generally does fine no matter what.
There is no "obligation" to pay - it is an agreement where you pay or the bank can take the house. The bank foreclosing is simply one possible way for the contract to be fulfilled.
Frequently banks would rather collect interest than take the house, in order to avoid the costs and hassles of foreclosing, maintaining and selling the house. It is a purely financial transaction, and the bank generally does fine no matter what.
Wrong. Completely.
Foreclosure is the bank's remedy for borrower breach, borrower failure to perform as promised. Breaking promises is bad, and consequences are significant.
Rationalizing failure to perform as a perfectly acceptable contractually-agreeable alternative to actually performing as promised does not change the fact that the buyer has not fulfilled their responsibilities to the lienholder.
Sure, it is "just business." "Just business" does not exempt people from fulfilling their promises.
The concept that "No Fault Foreclosure on a Whim" is just a way of doing business would make it about impossible for a lender to offer credit to consumers. The credit we do have is predicated only on personal integrity and personal performance. The legal documents just put a framework around those expectations, documenting and defining rights, responsibilities, and remedies or recourses.
Last edited by MikeJaquish; 02-18-2014 at 11:19 AM..
With renting your monthly payment will escalate every year forever to beat inflation, not meet, but beat. A mortgage is locked in for 30 years with no escalation. Prices double about every generation meaning in the later half of your mortgage you are paying closer and closer to half of what your house cost you adjusted for inflation.
If we accept these assumptions, then indeed owning becomes financially smarter than renting. But what if we assume the opposite - that house prices will remain stymied permanently (and I'm not talking about the "bubble" peak of 2006. Around here... what bubble?)? What about folks who bought a then-nice house in Detroit in the 1980s? Are they financially ahead now?
Quote:
Originally Posted by tamajane
It seems some complainers about home ownership just can't afford to buy a home themselves. Otherwise, why complain about high real estate prices if you don't care about purchasing a home anyway. They want the prices to drop so they can buy, and people who can afford to buy now are being attacked, or told they are stupid.
My “complaint” is precisely the opposite: house prices are too low! What’s high is the property taxes and maintenance costs. What’s high isn’t the expense of buying the house, but the carrying-cost. If houses were more expensive, well then, presumably that’s because they have been appreciating in price. Then all that mending, mowing, trimming and leak-fixing would pay for itself. Then all that’s necessary is to wait for prices to rise, and sell to the person who’s clamoring to become an owner.
Quote:
Originally Posted by riaelise
There really shouldn't be any debate. Whether you own or rent, it is up to you. YOU know what's best for you, and no one should really encourage someone to do something that they don't think is good for them.
In theory this is eminently true, but we’re creatures of fashion and cultural exigencies. How many of our decisions are genuinely driven by personal conviction and rational weighing of pros and cons? How much of what we wear, eat, buy, consume, plan, and desire is ultimately the result of emulation or attempt to fulfill imperatives ever so gently suggested to us by external stimuli?
Quote:
Originally Posted by Halopm
In Germany people don't care about owning a house, different mentality. Germans rent and they are happy, they can care less about housing ...
Germans are content with renting not because they are smart and Americans are stupid, or because Germans are all communitarian drones eager to jostle shoulder to shoulder, while Americans are free-spirited individuals desiring their space. Rather, the German economy just isn’t built around mass house-ownership, and the American economy is.
As a side note, I disagree with the assertion that the German economy is healthy, while the American economy is struggling. Neither economy is strongly healthy, but if anything, the US economy has better long-term prospects. The salient point here, however, is that the US economy is so heavily dependent on domestic consumer spending, while the German economy is more industrial and more export-oriented. If the plurality of Americans decided to eschew house ownership and to become renters, the resulting collapse of consumption would destroy the American economy.
It is a milestone like marrying or having a family that represents maturing into adulthood for many people.
I have to admit that when I first bought a small, inexpensive home, I was looking at it primarily as another milestone achieved in life. A lot happened in my life since then though, and that house was long ago lost in a short sale after a messy divorce.
Today, I'm renting a townhouse and getting ready to buy a home big enough for our family, and my reasons are much more practical.
1. I want more control over the place I live in and call home. When you rent, you're largely stuck with things exactly the way the landlord purchased them. Sure, he/she will often fix something if it breaks -- but usually only with the cheapest option available. Right now in our townhouse, the kitchen cabinets are from the early 1970's and literally falling apart. The drawers have really strange mechanisms for their sliders (including a plastic rear bracket that attaches to a metal track suspended above each drawer). The brackets are starting to crack and break off, causing the drawers to tilt/fall into the back of the cabinets when you close them. If it was a place I owned, I'd remodel the whole thing. As it is, I can't even get the landlord to care about it enough to fix it (if he could even source the repair parts for these things anymore!).
2. I'd like to get the tax credits available when paying on a mortgage, vs. getting nothing back for paying monthly rent.
3. With a 30 year fixed rate mortgage, I know exactly how much I have to pay each month and know it won't change. With rent, chances are good that every time I have to renew a lease, rent is going to be increased.
4. At least in the area I live in now? I find rent is so high on larger properties, it's simply uneconomical. With 3 kids, we really want a place with 4 bedrooms. Most apartment complexes don't offer units with more than 3 bedrooms, and many of the people renting a 4+ bedroom home are asking hundreds per month more than I'd pay in a mortgage on something comparable.
5. I don't like potential issues with neighbors getting funneled through a landlord as intermediary. Thankfully, my next door neighbor is a wonderful person and we get along just fine. But quite frankly, our grade-school age kids can be really loud when playing, not to mention the occasional outburst of crying over homework or what-not. I could easily see a much worse situation where someone doesn't appreciate the noise and takes it up with the landlord, resulting in threats of eviction, etc. Much better, IMO, to own one's own property and place, so problems of that sort have to be addressed directly.
I'm not obsessed with home ownership, but I'm glad I did it.
I live in a very high cost of living area, and rents are skyrocketing here. Housing prices, too. It made sense to lock in my monthly cost of housing rather than watch it increase yearly, as well as build some equity. I feel pretty confident that I'll make a profit on my house whenever I sell (my long term plan involves moving to a cheaper area in about 5-7 years).
Claiming the mortgage interest and real estate taxes as a deduction really helped on my taxes, too.
And you just can't put a price on how good it feels to come home from a long day at work, kick off my shoes, smile at the tile backsplash I installed, pour a glass of wine, and flop down on my sofa and just survey my little castle. It's a really good feeling to know that I did this, all on my own.
Germans are content with renting not because they are smart and Americans are stupid, or because Germans are all communitarian drones eager to jostle shoulder to shoulder, while Americans are free-spirited individuals desiring their space. Rather, the German economy just isn’t built around mass house-ownership, and the American economy is.
As a side note, I disagree with the assertion that the German economy is healthy, while the American economy is struggling. Neither economy is strongly healthy, but if anything, the US economy has better long-term prospects. The salient point here, however, is that the US economy is so heavily dependent on domestic consumer spending, while the German economy is more industrial and more export-oriented. If the plurality of Americans decided to eschew house ownership and to become renters, the resulting collapse of consumption would destroy the American economy.
Most Germans don’t buy their homes, they rent. Here’s why
"It’s just a fact.*Many Germans can’t be bothered to buy a house.
The country’s homeownership rate ranks among the lowest in the developed world, and nearly dead last in Europe, though*the Swiss rent even more.
This may seem strange. Isn’t home ownership a crucial cog to any healthy economy? Well, as Germany shows—and Gershwin wrote—it ain’t necessarily so."
Germans can care less about worshiping homes and homeownership.
This people get 4 weeks vacation first year when they start working plus immediate health insurance at the first day of the work.
Germany is well organized and very disciplined country where even the public bus arrives right on time at every stop, every day.
Germany didn't allow companies to outsource their production in masses to China and etc.
"It’s just a fact.*Many Germans can’t be bothered to buy a house.
The country’s homeownership rate ranks among the lowest in the developed world, and nearly dead last in Europe, though*the Swiss rent even more.
This may seem strange. Isn’t home ownership a crucial cog to any healthy economy? Well, as Germany shows—and Gershwin wrote—it ain’t necessarily so."
Germans can care less about worshiping homes and homeownership.
This people get 4 weeks vacation first year when they start working plus immediate health insurance at the first day of the work.
Germany is well organized and very disciplined country where even the public bus arrives right on time at every stop, every day.
Germany didn't allow companies to outsource their production in masses to China and etc.
And every year, fewer and fewer people find this modern, organized paradise an appealing place to live.
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