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Old 10-04-2011, 06:29 PM
 
575 posts, read 1,775,984 times
Reputation: 308

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Quote:
Originally Posted by modeerf View Post
You believe that everyone who borrowed excessively are the only or main foreclosures?

Only, no. Mainly, yes.

You think its excessive to borrower on a house that the payment is only 10% of your income? Then the person loses his business or job that was related to housing and can't find other work that would satisfy the payment on the house?

But failed businesses, job losses, divorces, medical hardships, deaths, etc have always been reasons for people to re-evalute their financial situations and take appropriate action.

What did homeowners do before this era of massive government sponsored bailouts?

What do renters do when they are faced with similar hardships?

I'm sure you'll think I'm being heartless, but I honestly believe that accepting the reality of the situation and getting out from under the crippling debt loads early is a much better solution for most distressed homeowners than trying to hang on and hope for a miracle.


Seems like your trying to put them all in a neat little... you screwed up box....so now your homeless. Next time don't be so stupid....

Not buying it... i know to many that have lost not only their homes, but their families and happiness.
Not at all. I'm with you, some of the stories are truly heartwrenching, and I genuinely feel for the people.

It's just that in my mind that doesn't justify meddling in private contracts after the fact. Sorry.
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Old 10-04-2011, 08:15 PM
 
3,335 posts, read 2,980,199 times
Reputation: 921
Quote:
Originally Posted by Nocontengencies View Post
If your payment is $2800 you bought way too much house. It's obvious you bought too much house if you had no way to prepare for a possible disaster.
Who could possibly prepare for this? Really!
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Old 10-04-2011, 08:17 PM
 
3,335 posts, read 2,980,199 times
Reputation: 921
Quote:
Originally Posted by Axiom View Post
Not at all. I'm with you, some of the stories are truly heartwrenching, and I genuinely feel for the people.

It's just that in my mind that doesn't justify meddling in private contracts after the fact. Sorry.
Okay, so you must not be for the TOO Big to FAils.

why mettle in the banks stupidity or GM or FAnnie or Freddie?
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Old 10-04-2011, 08:45 PM
 
3,398 posts, read 5,095,217 times
Reputation: 2422
Just want to point out that the majority of people that get their houses taken away are not homeless.
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Old 10-04-2011, 09:10 PM
 
3,398 posts, read 5,095,217 times
Reputation: 2422
Quote:
Originally Posted by modeerf View Post
Who could possibly prepare for this? Really!
If you know you can't survive for several months if someone loses their job, I think there may be a very good chance you cannot afford a $2800 house payment. Being prepared for an emergency isn't living within your means, it's living below your means. Every person Iv' known so far that has lost their house, does have some blame. Yes, I feel bad for them because they aren't bad people, but people should be responsible for their own mistakes.
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Old 10-05-2011, 12:30 AM
 
Location: Los Angeles area
14,017 posts, read 20,871,119 times
Reputation: 32530
Quote:
Originally Posted by lauramc27 View Post
I'm not buying it either. We purchased a home that we could and did well afford, that was until husbands employer transfered him out of state. Daughter and I stayed trying to sell the house, with no luck, not even one bite. We decided to rent the house. Unfortunatley we could only get $1300 rent on a $2800 mortgage. We continued to pay for the house using per diem money husbands company provided for a year and a half while living in New Mexico. The house was on the market this whole time. His company then transfered him to Oregon where they do not pay per diem because this is where the company is located. The rent on our house in Oregon was $1500 and with a $2800 mortgage payment and then regular bills and food there was no way we could afford to keep the Utah house. BTW, we had to evict our tenants in Utah for non-payment of rent. It was either transfer and have a job, or say no and not have a job, so it was a no brainer.

Not every foreclosure fits into the box. When we purchased the house we could afford it and planned on living in Utah for years. His job told him that he would stay on as part of the sustaining group after the main job was complete, well, that didn't happen. We tried everything with the bank and they pretty much refused to help us or themselves from having another house on their books.
I am sorry for all the travail you have been through. However, if your house was on the market all that time without being sold, it is clear you had it priced too high. In retrospect, wouldn't you say it would have been better to take a loss on the house and get it sold quickly rather than to go through such prolongued agony? Was your own stubborness a part of the problem?
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Old 10-05-2011, 09:29 AM
 
Location: Albuquerque
5,548 posts, read 16,053,268 times
Reputation: 2756
Quote:
Originally Posted by davehalo
Those statements are direct from FICO's CEO Mark Greene
I agree with everything you said - especially about the feedback loop.

My post was not directed at you, but with the juxtaposition of those two
statements. They are totally unrelated. This is best illustrated by example:

Quote:
30% of homes in US are underwater
1/3 of all defaulters are strategic
In a population of 10,000 homes, 3,000 are underwater - that's 30%.

In the population of 10,000 homes, 900 of them go into default.
Of that 900, 300 are strategic defaulters. That's 1/3 of them.

There is no relationship.

Just because a home is under water, doesn't mean it will go into default.

There are probably people who strategically default who are not under water.
Many strategic defaults areprobably not well thought out and thus fall under
that category. Walking might just be seen as easier than an orderly sale by some.

Quote:
Originally Posted by johnnybub
... duh, you mean people bought homes they couldnt afford?????
gee didnt they know what there montly payment would be?
living within your means somehow is forgotten,,
What's the definition of living outside of one's means?

I guess an example is in order:

Someone who put down 20% on the house - totally irresponsible.
Someone who took out a mortgage where there was a $1,500/month payment
when the combined income of the family was in excess of $5,000/month - crazy.

For some people, the above, is an example of someone totally living outside of there means.

Oh wait: Later, they both lost their jobs and one got replaced with a job paying 1/2th what they used to make.
........... The other, ... well there still unemployed.
........... It's all there fault - yes it is. there fault.

There was a time in America when if such a thing happened, the family would just sell the house and
get on with their lives - maybe renting. Unfortunately, this is not the American that you grew up in.
It's gone with the factories and production of goods to another country. The America of today
makes financial products that get sold back and forth by entitled Wall Street types.

Their victimes are deemed criminals when they give up and walk away from their dreams.

Last edited by mortimer; 10-05-2011 at 09:48 AM..
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Old 10-05-2011, 09:40 AM
 
416 posts, read 636,155 times
Reputation: 156
Quote:
Originally Posted by Axiom View Post
To clarify, all the links in the quoted post below are in response to the following question, yes?



My remarks in red.



I'd ask again, but that was a lot of reading!

typical. these are just a sample of what you can find in re: to news stories and you find "exceptions" in every one

don't ask a question if you are then going to question or take exception to the reply....

but i'll give you one last chance...Nyergers foreclose on BoA after BoA tries to take their house thru the FC process. Except the Nyergers don't have a mortgage, never did, as they paid cash for the house.

I know...I know...you'll prob'ly say this doesn't count as well cuz the prob'ly got the house thru a SS, FC-auction process and paperwork was still pending somehow.

Examples are examples. you asked for em, got em, and now don't like em
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Old 10-05-2011, 09:49 AM
 
Location: Arizona
1,204 posts, read 2,522,970 times
Reputation: 1551
Quote:
Originally Posted by Nocontengencies View Post
If your payment is $2800 you bought way too much house. It's obvious you bought too much house if you had no way to prepare for a possible disaster.
Really? And you are basing this on what? Our LTV when we bought the house was in line for that amount. This was not the first house we purchased, so we knew how much we could afford. Now, since you don't know how my husband company works, there was no way for us to "plan" to move. We were told this was a perm. move so we purchased a house, and they gave him 1 week to transfer to NM. How were we supposed to plan for that? We did have savings, but that was eaten up with moving expenses across country. It isn't cheap. This is how this company works. When they transfered us from NM to Oregon they have him 4 days notice to move. When the transfered him from Oregon to Arizona again they have him 1 weeks notice. You either take it or not have a job. Had we known, we never would have purchased in the first place, but hind site is 20/20 isn't it?. Don't assume to know peoples circumstances, because you know how that always turns out.

When you take $2800, add rent for another place in the state in which you were transfered to, moving expenses, first and last for the new place, having to buy a truck for hubby because his stopped working, having a 9 year old daughter needing clothes every 6 months because she is growing like a weed and then just basic expenses there is no way to afford the house and live or afford to maintain two separate households for a prolonged period of time. We did pay for the house for a year and a half after the move, fully knowing we would never live in it again, so this wasn't a decision made lightly. Most people would not be able to afford that, so it was keep the house or have a job, now you tell me which you would choose. Had his company not transfered him, there wouldn't have been any problem with us affording the house, we lived there for 2 years and were able to afford it and also have money for vacations and such.

Last edited by lauramc27; 10-05-2011 at 10:08 AM..
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Old 10-05-2011, 09:52 AM
 
Location: Arizona
1,204 posts, read 2,522,970 times
Reputation: 1551
Quote:
Originally Posted by modeerf View Post
Who could possibly prepare for this? Really!
Thank you modeerf. There is no way to prepare for your job telling you you have to move to another state in 1 week. He actually had to stay with friends for like a month because he didn't have time to find a place right away.
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