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Considering that the bank creates the money for the loan out of thin air everyone should sleep well not paying their mortgage during foreclosure. I have no sympathy for the greedy bankers sucking 2x the value of a home over the life of a mortgage.
I been saying this for a year now and I am far from any financial genius. What we are about to experience is going to make the 1928 Great Depression look like just a blip on the map. We are in for a total and complete economic collapse. What is a total and complete economic collapse? No one knows, we never had one. But we will.
In the depression 90% went into foreclosure that had loans.I don't thing this will be as bad as the first round but certainly not good and will prolong the recession recovery. Right now interest rates are low and they probably won't go up this time.
This is one of the core problems. More and more people are finding out that you can stop paying on the mortgage and live rent free for a year or longer without any consequences. This is WAY smarter than liquidating retirement accounts or running up credit card debt in order to pay a mortgage. There are NO criminal liabilities to not paying on your mortgage. Your credit score will suck for a couple of years, but so what? The problem is even if you do a short sale your credit score will still take a hit. Would you rather have a low credit score with an extra 30-60k in the bank or not?
The fact of the matter is it's a smart business decision for many people to stop paying the mortgage instead of working it out with the bank or doing a short sale. Banks refusing to kick people out because they want to hold their inventory longer is only going to cause more people to stop paying. Their greed is hitting them again. They should be taking the losses properly instead of drawing them out for years. It will cause a cycle of new people not paying on their house.
these people that you are describing are not smart, rather they are unethical. shame on all the people who tell others to ignore the law for their own benefit. we are headed to a societal breakdown and people are urging others on! just because one group engages in bad behavior, that does not mean that everyone should engage in bad behavior. the idea rather should be to PUNISH bad behavior. instead we have, "let the illegals in, let people not pay, let the government keep bailing out the irresponsible and the predatory", etc. it means nothing to have money in the bank if the money has become worthless. if we don't start acting responsibly as a society, our money will be worthless and that is about the only thing you can bank on.
now our government needs a bailout and is going to ask healthy banks to give them money. when does this stop?
fiat currency is 100% based on trust! this will not end well!
Last edited by floridasandy; 09-22-2009 at 04:49 AM..
It sickens me when I hear of people not paying their mortgage. One guy that works for me, hasnt paid it in over 18 months. He went in over his head, then divorced, then figured out his mortgage was too high so he stopped paying. He told me last week he put over $200,000 into his house ; I said, what. His response was that he put in new windows etc ; that was $50,000, then he did pay hismortgage for about a year ; that was $40,000 ; he just couldnt add up the numbers. Then I replied ; but you have been living rent free for over 18 months ; he jsut coudlnt get it at all.
meanwhile, i am trying to keep my head above water, working hard, raising my kids, going to school full time and paying my bills.
Its the get rich quick scheme that many deadbeats are looking for. there isno get rich quick scheme ; work hard, pay your bills, dont get in over your head and you will be ok.
d
It sickens me when I hear of people not paying their mortgage. One guy that works for me, hasnt paid it in over 18 months. He went in over his head, then divorced, then figured out his mortgage was too high so he stopped paying. He told me last week he put over $200,000 into his house ; I said, what. His response was that he put in new windows etc ; that was $50,000, then he did pay hismortgage for about a year ; that was $40,000 ; he just couldnt add up the numbers. Then I replied ; but you have been living rent free for over 18 months ; he jsut coudlnt get it at all.
meanwhile, i am trying to keep my head above water, working hard, raising my kids, going to school full time and paying my bills.
Its the get rich quick scheme that many deadbeats are looking for. there isno get rich quick scheme ; work hard, pay your bills, dont get in over your head and you will be ok.
d
I guess he figures that when they bank takes the house he'll have increased their value. I saw a story where a lot of banks are negotiating with people who are being forclosed on... don't fight it and a rent that is afordable (which could be very small) is arrainged and the owners become tenants. That way the house sits occupied, the utilities are on, the grass is cut, the druggies aren't taking it apart from the inside until the bank finally decides to sell. People like this guy are not going to get that kind of deal when the ax falls.
I guess he figures that when they bank takes the house he'll have increased their value. I saw a story where a lot of banks are negotiating with people who are being forclosed on... don't fight it and a rent that is afordable (which could be very small) is arrainged and the owners become tenants. That way the house sits occupied, the utilities are on, the grass is cut, the druggies aren't taking it apart from the inside until the bank finally decides to sell. People like this guy are not going to get that kind of deal when the ax falls.
Yes, and he tried to sell, but only at the inflated price he paid for the house initially. I aksed him if he reduced the price, his reply ; no, thats for the realtor to do. The house is priced $100,000 over what other houses are going for.
Gosh I hate people who do not take responsibility for their actions. He didnt put his wife on the mortgage as he thought he could make a quick $50,000 and not give it to her. He had two mortgages ; 105%, didnt put a penny down. But his lawyer is going to have him stay in the house for about another year.
Yes, and he tried to sell, but only at the inflated price he paid for the house initially. I aksed him if he reduced the price, his reply ; no, thats for the realtor to do. The house is priced $100,000 over what other houses are going for.
Gosh I hate people who do not take responsibility for their actions. He didnt put his wife on the mortgage as he thought he could make a quick $50,000 and not give it to her. He had two mortgages ; 105%, didnt put a penny down. But his lawyer is going to have him stay in the house for about another year.
d
Just hearing that story pisses me off. I hate people like that.
Just hearing that story pisses me off. I hate people like that.
I agree! My husband & I are completely disgusted with people like this!
We have a house that has been on the market now for over a year,we moved due to an unexpected relocation.
Our house was brand new and we now have tenants in it,however,they were not able to pay what we were asking in rent,so we are still paying part of our mortgage there as well rent on a new home (lease to own). We didn't want to get into having to pay 2 full mortgages,so decided it was best to rent for awhile in our new area.
We still have our car payments,utilities,etc... every bill that most every person has and we pay them-on time!
It makes me sick that so many people got in over their heads and just decided to walk away from their responsibility! we know people who are foreclosing on a home and act like life couldn't be more wonderful!
Walked away from their responsibility and are renting a beautiful home in a lovely ocean resort community now,have their children involved in all types of activities ,going on vacations,etc... all because they didn't pay their mortgage for almost a year!
They saved that money up and planned all of this out!
Disgusting is a nice way to put it. I hope they feel good about what they are doing to the honest people of this nation who know they have a responsibility and aren't running away from it.
We are draining our children's college funds right now paying for 2 homes,etc....
We could just as easily walk away from our house that hasn't sold,but we won't.....
This is one of the core problems. More and more people are finding out that you can stop paying on the mortgage and live rent free for a year or longer without any consequences. This is WAY smarter than liquidating retirement accounts or running up credit card debt in order to pay a mortgage. There are NO criminal liabilities to not paying on your mortgage. Your credit score will suck for a couple of years, but so what? The problem is even if you do a short sale your credit score will still take a hit. Would you rather have a low credit score with an extra 30-60k in the bank or not?
The fact of the matter is it's a smart business decision for many people to stop paying the mortgage instead of working it out with the bank or doing a short sale. Banks refusing to kick people out because they want to hold their inventory longer is only going to cause more people to stop paying. Their greed is hitting them again. They should be taking the losses properly instead of drawing them out for years. It will cause a cycle of new people not paying on their house.
I recently bought a condo when prices slipped into my price range, and I ran into this problem when I was out looking with my real estate agent. She'd find suitable listings for me, but would never hear back from the owners on many of them, because they didn't really want to sell. Selling would mean they'd have to move and start paying rent again. They just kept the property on the market as a show to the bank that they were making an effort to sell and thus weren't yet kicked out.
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