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Miillions of people have done exactly that in the recent past when they lost capacity to repay.
Worse many of these people deliberately walked away from their mortgages lifing in those hommes for free for mobths or years before the lender foreclosed.
This is slightly off-topic but since mortgages were brought up it bears telling:
In the real estate crash of 2008-2010 when millions of people were upside-down on their mortgages but wanted to keep their homes albeit at a much lower monthly payment hundreds of thousands figured out a simple trick:
They owned a home they owed a million dollars on; after the crash the homes' value sunk by half-to three-quarters ($1,000,000 now valued at $400,000)
They watched as speculators were scooping up their homes for pennies on the dollar. So they hit on a simple strategy: they defaulted on the loan and allowed it to proceed to foreclosure. Since the law forbad prior owners from being able to attend the auction and bid on their own home, they hired strawmen to bid for them. The strawman bid $400,000, got the home, and signed it over to the original owners for a fee. Bingo. The original owners are now back in their $1,000,000 home but they have a new mortgage for $400,000.
I should point out to Cal residents that California is not a true non-recourse state. Banks have the option of either going for a traditional foreclosure, in which case they cannot come after you for any deficiencies if the sale of the subject property comes up deficient to the loan. Or they opt for not going the traditional route and come after you for the entire amount of the loan, including attaching any other real estate you own, bank accounts, other assets, etc.
Me: 28/F Nursing Student (Bachelors) No previous degree.
Total projected debt at graduation: 48K (Federal Loans)
Plan A: I am paying off accrued interest while in school. Once I complete school, I will go work for the California Prisons System in some god-for-saken small town, do a two year contract @ almost 90K a year, and pay back all of my loans. Plus utilize the states RN loan repayment program (double-dipping)
Plan B: Take a regular RN new grad position in a low COL / low wage area and take a low-income payment reduction plan from the Obama administration, after the required 2 years experience as an RN then go on the road as a travel nurse for 2 years and put 80% of salary towards loans.
Some of us have no choice but to take out student loans. Nursing school is like 2 full time jobs, plus I have 1 kid. During Christmas and summer I work to supplement my income. I don't qualify for welfare, get this: because I am a student (but if I were to quit school and do nothing, - I could get welfare).
But, I have a plan. How many people take out loans for crappy degrees with no real potential of financial gain? I think that if your educated about the costs, interests and the risks than go ahead. But taking out massive student loans should be a calculated move, and most 18-21 year old's are not mature enough to understand the ramifications.
You sound like a pretty practical gal. My advice: get a specialty like oncology nursing or better, nurse-anesthetist. I almost rented to a couple; she was a NA and at the time (2006) was making about $125,000, which I verified. Now the salaries are at anywhere from $150-200K.
This is slightly off-topic but since mortgages were brought up it bears telling:
In the real estate crash of 2008-2010 when millions of people were upside-down on their mortgages but wanted to keep their homes albeit at a much lower monthly payment hundreds of thousands figured out a simple trick:
They owned a home they owed a million dollars on; after the crash the homes' value sunk by half-to three-quarters ($1,000,000 now valued at $400,000)
They watched as speculators were scooping up their homes for pennies on the dollar. So they hit on a simple strategy: they defaulted on the loan and allowed it to proceed to foreclosure. Since the law forbad prior owners from being able to attend the auction and bid on their own home, they hired strawmen to bid for them. The strawman bid $400,000, got the home, and signed it over to the original owners for a fee. Bingo. The original owners are now back in their $1,000,000 home but they have a new mortgage for $400,000.
I should point out to Cal residents that California is not a true non-recourse state. Banks have the option of either going for a traditional foreclosure, in which case they cannot come after you for any deficiencies if the sale of the subject property comes up deficient to the loan. Or they opt for not going the traditional route and come after you for the entire amount of the loan, including attaching any other real estate you own, bank accounts, other assets, etc.
I don't get it.
How do you bid at auction with a mortgage instead of all cash?
How do you get a mortgage on a house you (1) are not the person officially buying it and (2) have it right on your credit record that you have a home foreclosed on in the present time?
You sound like a pretty practical gal. My advice: get a specialty like oncology nursing or better, nurse-anesthetist. I almost rented to a couple; she was a NA and at the time (2006) was making about $125,000, which I verified. Now the salaries are at anywhere from $150-200K.
Sorry to say it, but Nurse Anesthetists are suckers.
They are doing the exact same work (and have to pay the same outrageous malpractice insurance) as doctor anesthesiologists ... for less than half the income.
If you want to do anesthesia, be a doctor and earn what the job is really worth instead of less than half pay because you're "only a nurse."
Sorry to say it, but Nurse Anesthetists are suckers.
They are doing the exact same work (and have to pay the same outrageous malpractice insurance) as doctor anesthesiologists ... for less than half the income.
If you want to do anesthesia, be a doctor and earn what the job is really worth instead of less than half pay because you're "only a nurse."
Maybe the RN doesn't want to spend 4 more years getting an MD, then doing an internship just to get more $$$. Maybe they have other interests in their lives and money is not what they are seeking.
Maybe the RN doesn't want to spend 4 more years getting an MD, then doing an internship just to get more $$$. Maybe they have other interests in their lives and money is not what they are seeking.
Maybe. But they are just getting ripped off doing anesthesia on top of nursing. They should be paid more. There are RNs who make that much money just being RNs instead of being responsible for the riskiest part of medicine, which is anesthesia. RNs who go on to being nurse supervisors make around or more than that money too. Just a typical pink collar ripoff because they are in a "women's profession."
How do you bid at auction with a mortgage instead of all cash?
How do you get a mortgage on a house you (1) are not the person officially buying it and (2) have it right on your credit record that you have a home foreclosed on in the present time?
Well, there are a lot of inside tricks various people and counseling groups figured out. There is/was no one particular way to do this kind of thing. For example, different auction outfits handling the foreclosures had different requirements: one might say, "You have to have cash in a bag"; another might say, "You have to have a certified check" (but how do you get a certified check for an amount when you don't even know what it's going to be); another would allow you to write a personal check if you could prove you had the funds; another would require you to show that you have the funds on deposit in a bank via a deposit receipt; another would just let you show them you have a mortgage from a mortgage broker waiting in the wings to put in place for x amount of dollars. There are endless permutations of the formula but the one basic end result was that buyers got others to buy their houses back for them at half their original mortgage. The strawman had to be a distant relative or very trusted friend because they would be handling a large amount of money that belonged to you, like a trustee does for someone's estate.
Sorry to say it, but Nurse Anesthetists are suckers.
They are doing the exact same work (and have to pay the same outrageous malpractice insurance) as doctor anesthesiologists ... for less than half the income.
If you want to do anesthesia, be a doctor and earn what the job is really worth instead of less than half pay because you're "only a nurse."
That's problematic, Love, because most nurses cannot get into medical school--too competitive; and they don't have the means to do 4 years med school plus 3 years residency plus another 3 years specialty in anesthesiology. $150k is a fair trade for extra insurance for just a BA in nursing with an extra year of training in NA. Plus the hospital picks up much of the malpractice responsibility because the nurse is always being monitored by an attending anesthesiologist.
That's problematic, Love, because most nurses cannot get into medical school--too competitive; and they don't have the means to do 4 years med school plus 3 years residency plus another 3 years specialty in anesthesiology. $150k is a fair trade for extra insurance for just a BA in nursing with an extra year of training in NA. Plus the hospital picks up much of the malpractice responsibility because the nurse is always being monitored by an attending anesthesiologist.
Okay, good points. Med school is very hard to get into in the U.S. and the NA is not working independently of a doctor anesthesiologist.
If you're thinking of going to college where the tuition annually is north of 15k and your parents cannot afford to give you the money you'd better think long and hard before you sign those loan papers. You are signing away your life.
1. the debt is not dischargeable except in very rare circumstances--99% of students would not qualify
2. the debt can follow you for life. While it follows you the interest is compounding so that over a 15-20 year period a 60k bill for a BA can easily grow to 150k or more.
3. If you find a menial job most of your salary will be going toward paying the bill, either voluntarily or by garnishment.
4. If it goes to collections, the owners of the debt, usually private lending institutions, have the power to seize your possessions, your Social Security when you qualify, even your inheritance if your parents want to leave their estate to you.
5. Thousands of students trapped in a cycle of harassment, despair, depression over having little hope of every getting the debt paid have committed suicide to escape it.
6. With 100k-200k worth of student loans and not so good prospects for landing a job that pays 50-100k annually you can forget about ever buying a house, having children, having a secure retirement. This debt will be a literal millstone around your neck if you ever contemplate throwing yourself off a pier.
7. Barring inheriting a million dollars or winning the lottery these kinds of debts destroy more lives than any other kind of debt out there.
Think long and hard before you sign away your soul to these "great vampire squids wrapping themselves around the face of graduates, relentlessly jamming their blood funnels down graduates' financial throat to suck out anything that smells like money” to paraphrase Mike Taibbi.
Yep, if you don't have the money, and aren't enough of a student to get a scholarship, perhaps it's best to forego college. Also, the idea that a college degree leads to a road in life made of gold, is greatly misplaced. If it was so financially rewarding, then why are people defaulting on these loans?
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