Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What is even more strange is that these "strategic defaulters" (euphemism for deadbeats) actually stay in the house rent-free for several months (or years) until the bank kicks them out.
Whatever happened to mailing in the keys? Don't these people have any shame? When businesses realize their losing position, they walk away. But they don't squat.
Unbelievable that some of the posters actually support the deadbeats with their logic. It is not about morality, but doing the right thing.
Has the USA become the land of the paranoid, debt and the pretentious?
What is even more strange is that these "strategic defaulters" (euphemism for deadbeats) actually stay in the house rent-free for several months (or years) until the bank kicks them out.
Whatever happened to mailing in the keys? Don't these people have any shame? When businesses realize their losing position, they walk away. But they don't squat.
Unbelievable that some of the posters actually support the deadbeats with their logic. It is not about morality, but doing the right thing.
Has the USA become the land of the paranoid, debt and the pretentious?
and in the Mortgage Forum, the moderator states------"leave your moral judgement at the door "-----when posters ask if they should walk away from a house solely because it lost value.
I still post my--moral judgement-- there, despite many times getting my posts removed cuz it isn't " deadbeat PC "
Correct as far as Arizona being a non-recourse safe walk-away state, perhaps, but no so much about the rest of DD's Gonna-Getcha-Hauntcha-Forever hype.
All states have some limitations of time for actions to bring collections suits. Varies by state. Typically around 4 years, IIRC the longest is 6 years. That is the limit to bring a civil suit for collections.
This is not to be confused with time to collect if one is awarded a court judgment -- which is typically around 10 years. But to even get a judgment there must be a successful civil suit brought and won with a a judgment awarded, first.
Another area of confusion on this is "how long on a credit report?" Typically 7 years max. 10 years for tax liens.
Overall, the banks are way too busy trying to stomp out their own fires, first.
But people should be wary of this statement: "What can be scary is that the judgments don't have to be obtained immediately. Lenders or collection agencies may wait until debtors have recovered financially before they swoop in. In Florida, the bank can wait up to five years to file. Once the court grants a judgment, the lender has 20 years there to collect, with interest."
All I am saying is, if sleazy collectors can get money out of it, they will. And if they can find a legal gap that will enable them to collect beyond any due dates, they will.
But people should be wary of this statement: "What can be scary is that the judgments don't have to be obtained immediately. Lenders or collection agencies may wait until debtors have recovered financially before they swoop in. In Florida, the bank can wait up to five years to file. Once the court grants a judgment, the lender has 20 years there to collect, with interest."
All I am saying is, if sleazy collectors can get money out of it, they will. And if they can find a legal gap that will enable them to collect beyond any due dates, they will.
People think they can run from their problems but they never get out and it just gets worse.
and in the Mortgage Forum, the moderator states------"leave your moral judgement at the door "-----when posters ask if they should walk away from a house solely because it lost value.
I still post my--moral judgement-- there, despite many times getting my posts removed cuz it isn't " deadbeat PC "
haha, F**k the moderators. They should stick to removing the ad spam, that seems to remain for days even after you notifiy them, when they will remove a post that is not deemed politically correct in a blink of an eye.
I've been in the mortgage forum, they should retitle it the "Deadbeat Forum", seriously.
Whatever happened to mailing in the keys? Don't these people have any shame?
Why should they leave if the bank does not ask them to leave, though?
It seems like you should be angrier at the banks for being so sluggish and slow to act, than at the people who are merely choosing to act rationally in their own financial interests.
People think they can run from their problems but they never get out and it just gets worse.
Don't even have to "run." Just stop paying and wait. Most Banks and Credit Cards that are operating with defaults just let the clock run out on them.
The Banks are getting to screw the folks who are still paying the 33% APR or whatever usury rate the cards have run up to, they are making a ton of money even if some folks just walk away.
If the loan documents provide for a recourse loan, and the borrower has other assets that could pay off the loan, the lender should go after them.
The reality is that most borrowers in foreclosure probably have no other assets, so you can't bleed a stone. But if they do, the lender has an obligation to its shareholders to pursue full payment as best it can.
Walking away from a loan that you could possibly pay is a business decision, and there's no reason that lenders should be denied what they negotiated in their loans.
I remember watching a story on the news that said this individual bought a house at the top of the market for $600,000. After the housing bust that house was now worth $300,000. So this person went to a different neighborhood and bought a new house for $325,000 and then defaulted on the first house.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Should Lenders Go After Borrowers Who Walk Away?
