[DJZimbabwe]

Originally Posted by stpeteguy

As the title implies, i'm mulling this over, since i'm about $60K underwater on my mortgage.

I'm interested in the legal ramifications of foreclosure as well as the process, how it works, peoples own stories, etc. Should I hire a lawyer? Can they sue me? that sort of thing.

I'm NOT interested in your moral judgements. If that's all you can offer, please don't respond. This is purely a business decision.

I've read all 26 pages of this thread as my family is in a very similar situation in FL, and the information here has been invaluable. Thanks to all those who have contributed!
So, any updates stpeteguy?

[kiggy]

Originally Posted by stpeteguy

I hear ya. I tried to get a modification too. No luck. I didn't qualify because I hadn't lost my job or anything like that.

I couldn't sell it because it was worth about half what I owed and the area had really gone downhill since we purchased it. Every month was just throwing money in a black hole.

I looked into the whole short sale angle, but based on people I know personally who had already done that, I knew my credit would be ruined. And on top of that, you have to jump through a lot of hoops and deal with hassle from the bank IF they decide to do it. And in the end, you have nothing at all to show for it except ruined credit. That was a non-starter for me.

Really, the only thing left was to get a lawyer and use all legal means available to me, to help myself as much as possible.

Obviously banks, realtors and those associated with the mortgage industry frown on what I did, because my way helps me financially, their way helps them financially. simple as that.

In the end, it's always about the money.

Spoken like a true sociopath. Congratulations on never having grown a conscience. For most people, it ain't easy. And in the end, it's not always about the money. Sheesh, I feel sorry for your wife!

[Mr. Maryland]

I don't understand all the harsh moral judgement. Banks and business make business decisions everyday that don't take morality into account, it's just business.

I can understand the argument if a person goes into a mortgage with the intent from the get go to commit fraud or something, that makes sense, but to apply some sort of morality code to those who come to the decision that they can no longer justify the loss seems silly to me. Banks and business certainly don't reciprocate any sort of morality code.

Markets change, and people who bought during the boom mostly didn't have any idea that banks were doing the derivatives trading nonsense that they were doing, that was not something that was common knowledge during the run up for most people. Bubbles burst, and at some point for some people it just makes better financial sense to cut their losses and move on, to reboot basically.

Just my 2c

[FreeAptFinder]

Originally Posted by stpeteguy

As the title implies, i'm mulling this over, since i'm about $60K underwater on my mortgage.

I'm interested in the legal ramifications of foreclosure as well as the process, how it works, peoples own stories, etc. Should I hire a lawyer? Can they sue me? that sort of thing.

I'm NOT interested in your moral judgements. If that's all you can offer, please don't respond. This is purely a business decision.

Although I didn't take the time to read the entire thread and don't know your circumstances, I think you would be better served investigating a loan modification (first) or short sale (second) before going to the extreme of either FC or BK.

FCs and BKs report to your credit report 7 years & 10 years respectively and financing, borrowing and debt leveraging became more difficult (if not impossible).

Loan mods and short selling aren't without their consequences, but these solutions are less damaging to your credit score and creditworthiness then FC and BKs are.

Good luck!

[tonyff67]

I was $200k under water on my house, but like an idiot I keep paying while all my neighbors go through strategic defaults. Each default lowers the value of my home.

Thank you scumbags, for making those of us that honor our contracts, suffer more!

[The Villages Guy]

Here is how I look at it for those who walk away from their mortgage responsibilities simply because they think it is a "business decision" and not because they lost their job and could not pay the mortgage.

By that same logic, a bank who grants a request for a mortgage at a rate of 4% but 10 years down the road rates are at 8%, should be able to call the mortgage right then and there. It would simply be a "business decision" to stop collecting only 4%, when they could be collecting 8%.

Do you see how that would work if it went both ways?

Pay your freaking mortgage obligations, unless you financially cannot.......not simply walking away because you do not like the value of your house now.

Strategic Default is a crock. That is just a home owner trying to rip off the system, because they are selfish.

[kiggy]

Originally Posted by PriusH8r

Here is how I look at it for those who walk away from their mortgage responsibilities simply because they think it is a "business decision" and not because they lost their job and could not pay the mortgage.

By that same logic, a bank who grants a request for a mortgage at a rate of 4% but 10 years down the road rates are at 8%, should be able to call the mortgage right then and there. It would simply be a "business decision" to stop collecting only 4%, when they could be collecting 8%.

Do you see how that would work if it went both ways?

Pay your freaking mortgage obligations, unless you financially cannot.......not simply walking away because you do not like the value of your house now.

Strategic Default is a crock. That is just a home owner trying to rip off the system, because they are selfish.

To the OP's credit, he admits that he's selfish, and he could care less how this affects other people. He wants us to overlook the moral aspects of his "strategic default", little realizing how this becomes a reflection of his character, or lack thereof. People who would strategically default on loan obligation just because they simply want to walk away from a debt can also be the type who could cheat on their taxes, cheat on their wives, etc. if it suits their purposes. I would never, ever hire someone like that. And by the way, more and more people, especially in business, are running credit checks on these guys before hiring.

[City Guy997S]

Originally Posted by FreeAptFinder

Although I didn't take the time to read the entire thread and don't know your circumstances, I think you would be better served investigating a loan modification (first) or short sale (second) before going to the extreme of either FC or BK.

FCs and BKs report to your credit report 7 years & 10 years respectively and financing, borrowing and debt leveraging became more difficult (if not impossible).

Loan mods and short selling aren't without their consequences, but these solutions are less damaging to your credit score and creditworthiness then FC and BKs are.

Good luck!

My buddy works at a Mercedes dealer.......Financing is fine for even people with foreclosures on their credit. Note the lease rate/interest rate won't be tier 1 but they still drive out with the car! Usually a couple points higher than someone with stellar credit and they usually need a decent down payment.

The only real killer is if you have had a vehicle repo'd recently, that is tough to get around. Also note anyone who has a discharged bankruptcy is good as gold....THEY ARE DEBT FREE! Lenders love that angle and since you can't do it again for a few years it is ideal for them to get paid back!

[NowSoFlorida]

I don't think it's immoral to default on a home that is underwater and can't even be sold to just be able to walk away from it.

The banks created this problem. They lent money to anyone and to people who couldn't afford to pay their mortgages. It dropped the property values of most areas of the US. Then the banks are too big to fail so the government has to bail them out.

My father lives in a city in NJ has owned his 3 bedroom `1 bath home for 35 years and he would be lucky to get $100 K for it.

It's not like people are doing this for fun, it has implication on them also and their future credit rating and ability to buy another home.

[The Villages Guy]

Originally Posted by NowSoFlorida

I don't think it's immoral to default on a home that is underwater and can't even be sold to just be able to walk away from it.

The banks created this problem. They lent money to anyone and to people who couldn't afford to pay their mortgages. It dropped the property values of most areas of the US. Then the banks are too big to fail so the government has to bail them out.

My father lives in a city in NJ has owned his 3 bedroom `1 bath home for 35 years and he would be lucky to get $100 K for it.

It's not like people are doing this for fun, it has implication on them also and their future credit rating and ability to buy another home.

Buyers asked the banks to lend them money. The banks did not force them to take out a mortgage, nor did they tell them to buy such expensive homes. Buyers need to be held responsible as well.