[Rhett_Butler]

Originally Posted by cfIfan

I dont think anyone is saying that the banks didnt use people but realistically speaking something which we are seeing very little of is people taking responsibility for their actions. If you take an adjustable mortgage you have to plan for a worse case scenario. If in that scenario you cant afford the home then you have no business buying. If the property market hadnt crashed but risen people would have sold their homes, made alot of money as many did in the boom years and been laughing all the way to the bank with a stack of cash in their back pocket.

For the most part I agree.... Try to remember they don't call it "Predatory Lending" because they are presenting things honestly and being up front..

Originally Posted by cfIfan

The reality is these people took a risk. If your prepared to take the potential positives, then you should accept the negatives aswell. With respect to a 90yr old lady scenario, most people i know that age would speak to their family before making such a huge financial decision like that. Seems like their family wernt there to support them.

Trust me. Some 90 years olds don't.

Normally I'd take offense to the suggestion that our family somehow didn't "support" them, but seeing as how I understand how it would look that way from the outside, I'm not going to worry about it.. I'd think that too in your shoes.

[JohnVosilla]

Originally Posted by TANaples

I know a man who is walking away from his condo on purpose and letting it go into foreclosure. Sinking money into a money pit he calls it. He is going to rent instead. He is young and said his credit will be back in 10 years anyway.

Some of the worst hit areas in central and southern FL I have seen 2 bedroom condos once $200k now selling in the $20's with those left standing to pay steep special assessments on the 30-50% of units who aren't paying. Single family easily $250k+ selling for around $60-70k. Some of these prices today are way below what mid 1990's prices were. Much worse than a money pit it as it has been that plus rolling your dice in the casino or a dotcom stock. So much for stable neighborhoods and the 'ownership society' but the good that comes out of this is folks will out get from under massive amounts of debts and the next buyers will be able to live the american dream without debt slavery.

[desgvfasd]

I guess the question comes down to the next senario: for average Joe 100k is the average underwater money, to make that up you have to work 4-5 years for the bank. Who would do that? Raise a hand.
Walk away people!!! **** these ****ing banks. Don't get intimidated!!!

[DanBev]

You can walk away but eventually they might look and find you.All doors are open.

[ognend]

One other thing people forget is that your lender today barely holds on to your mortgage for more than 15 minutes. It is no longer a 30-yr deal for them - why should it be for you?

The decision is individual. If you had a county where the highest property rate increase historically year over year was e.g. 10% and you are under water by $100-$150K, you can do your own math to figure out how long it would take you to get to just being even.

The banks do not and did not treat houses as HOMES and the treatment of a house as a long-term HOME has been lost on many Americans. I came from a different continent and to me it was surprising how many houses change hands over the years in the States. Many people treat a house just as a place to be temporarily until a new job comes up and many more treat is as an investment. Once that "moral" barrier has been passed - the house is no longer a home and the only thing standing between you and the bank is the note you signed. If you were smart you could have protected all your other assets from being taken pre-note-signing. The bank has lawyers and the mortgage documents are generally made to protect them, not you. So, if they can protect themselves, you should too.

Finally, this decision to walk away is a personal one BUT you should not be worried about if a) you have protected your assets and b) it makes more economic sense to walk away.

My $0.02