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Old 06-30-2010, 01:34 PM
 
1,330 posts, read 1,164,934 times
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Should Lenders Go After Borrowers Who ‘Walk Away’? - Developments - WSJ
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Old 06-30-2010, 01:35 PM
 
Location: southern california
61,294 posts, read 82,116,910 times
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mastercard visa refi on the house every 6 months whats the difference
deadbeat nation, get em.
pay for what you purchase.
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Old 06-30-2010, 02:31 PM
 
Location: California
34,618 posts, read 38,209,483 times
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I'm not sure. Obviously if they walk away from a house they should not get a mortage ever again. Same with defaulting on CC's. I don't know why we keep giving people credit when they shouldn't have it.
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Old 06-30-2010, 04:10 PM
 
14,712 posts, read 21,510,318 times
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They already are, except in non-recourse states. People that think they walked away - suprise!!! If you "walked away" you have a nasty suprise coming up, maybe tommorrow, maybe in a decade when you think you are free and clear. Banks are selling these loans to debt collectors for the difference in the short sale, pennies on a dollar, but these collectors will find you - and you just know they will not give up haunting these people until they are dead. I think a whole industry will be created for this purpose alone.
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Old 06-30-2010, 05:05 PM
 
5,768 posts, read 11,022,752 times
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Quote:
I think a whole industry will be created for this purpose alone.
Actually, debt collectors have an odd habit of breaking federal law quite often in their collection attempts - which can lead to lawsuits based on FDCPA violations. I have seen the FDCPA suit industry take off along with the debt collection industry itself.

Something interesting for the future.
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Old 06-30-2010, 05:32 PM
 
Location: Planet Eaarth
8,954 posts, read 19,378,729 times
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Before all the members nail the walk-a-ways hide to the wall consider this.......

More than few of the walk-a=ways are quitting on houses that have lost so much value that all their doing is throwing good money after bad. When they have to stay they pay the price they bought the house for in the past not at todays value!

By doing this they are making the banks richer since the banks get the "in the past" price while the homeowner gets screwed big time taking all the value loss right in the wallet!

To be really fair banks should re-adjust the mortgage to reflect todays value but , as we all know, there's no way in hell their gonna do that. So people just walk away figuring, correctly, that their investment is a total loss so why throw more money at it?

One more point......
IF the lenders "get tough" with people that can pay but have a house worth less than what they paid this will set off the second wave of housing collapse as more people come to understand they are in a no win loan. This a case where the banks need to absorb the loss of value due the fact that the banks 'cause the first housing collapse.
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Old 06-30-2010, 06:15 PM
 
9,845 posts, read 21,172,553 times
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I don't see any reason why lenders should not go after deadbeats that don't pay their bills.

If people don't want to pay it back don't get the loan. Pretty simple. Can't afford a big house, don't buy one, can't afford a new car don't buy one.

There are so many bums and deadbeats out there that I think it's partly the reason why the economy will be a drag until 2020. People are just going to have to knuckle down and pay off the McMansion. That 40 year ARM you signed up for you should have realized what 40 years meant.
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Old 06-30-2010, 06:25 PM
 
9,845 posts, read 21,172,553 times
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Quote:
Originally Posted by Tightwad View Post
Before all the members nail the walk-a-ways hide to the wall consider this.......

More than few of the walk-a=ways are quitting on houses that have lost so much value that all their doing is throwing good money after bad. When they have to stay they pay the price they bought the house for in the past not at todays value!

By doing this they are making the banks richer since the banks get the "in the past" price while the homeowner gets screwed big time taking all the value loss right in the wallet!

To be really fair banks should re-adjust the mortgage to reflect todays value but , as we all know, there's no way in hell their gonna do that. So people just walk away figuring, correctly, that their investment is a total loss so why throw more money at it?

One more point......
IF the lenders "get tough" with people that can pay but have a house worth less than what they paid this will set off the second wave of housing collapse as more people come to understand they are in a no win loan. This a case where the banks need to absorb the loss of value due the fact that the banks 'cause the first housing collapse.
Really?

If people are believing all that then they need to go back to elementary school math because they are uneducated and their 4th grade math teacher should be sent to prison. And this type of financial wizardry on the part of many citizens is why the country is in the toilet right now.

House values and equity don't mean squat until the house is actually sold and closed on. People that say for instance I owe $100K more than I could sell it for right now, BIG DEAL unless you are actually selling the house.

What does "today's value" have to do with anything???

So I guess using this same logic if home prices go up the lender should tack on the additional "today's value" to the mortgage then??? In other words, if you home gains $100k in "today's value" compared to your mortgage than the lender should tack on that additional $100K to your mortgage.

You can't have it both ways.
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Old 06-30-2010, 06:32 PM
 
Location: Oxygen Ln. AZ
9,320 posts, read 17,747,448 times
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I feel strongly the people who walk when they are able to pay and have good jobs, should be held accountable to what misery they have added to this economy. The ones who have valid reasons, such as job loss, huge medical bills etc, given a pass. They will still suffer the credit dink and would not be able to buy for quite a while, but those like my neighbors who simply did not like the fact that they owed more than it was worth, I hope their ankles turn.
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Old 06-30-2010, 07:05 PM
 
1,234 posts, read 964,324 times
Reputation: 2286
Quote:
Originally Posted by wanneroo View Post
Really?

If people are believing all that then they need to go back to elementary school math because they are uneducated and their 4th grade math teacher should be sent to prison. And this type of financial wizardry on the part of many citizens is why the country is in the toilet right now.

House values and equity don't mean squat until the house is actually sold and closed on. People that say for instance I owe $100K more than I could sell it for right now, BIG DEAL unless you are actually selling the house.

What does "today's value" have to do with anything???

So I guess using this same logic if home prices go up the lender should tack on the additional "today's value" to the mortgage then??? In other words, if you home gains $100k in "today's value" compared to your mortgage than the lender should tack on that additional $100K to your mortgage.

You can't have it both ways.
See, this is EXACTLY the problem: People DO need to sell who bought at the top (unknowingly). Some need to move NOW for a job opportunity but are so upsidedown through NO fault of their own (due to the foreclosures around them), and they can't afford to bring cash or their life savings to the table. We're able to rent ours out, albeit, at a huge monthly out-of-pocket loss; some cannot do that and they will walk. People will always pick a job opportunity over a house. Why don't the banks or the gov't try to help that group? The ones who just need to sell so they can move, which ironically helps somebody in the new town, by renting or buying THEIR home? AND... here's a bonus: they stay off unemployment b/c they are able to move and take the new job!
It's all such a sad mess. Instead, they just keep giving incentives to 1st time buyers, move-up buyers, and modifications to those will eventually de-fault. I see this becoming a bigger problem in the next couple of years. People will just give up; with each walk-away, your house just keeps losing value and the inventory piles up.
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