[rpachigo]

So many good quotes in this one.

"But Gavish suspected things will begin picking up now with last week's release by banks of a new wave of foreclosures."
I agree.

"The six-bedroom, 7,700-square-foot home on an 18,000-square-foot lot was once appraised for more than $4 million. It's now listed for $1.7 million, or $219 a square foot. It needs about $100,000 of inside remodeling and $50,000 of landscaping and exterior work, Gavish estimated."
Still overpriced.

"She's seen homes in an older neighborhood near Christy Lane and Charleston Boulevard that once sold for as much as $280,000 being sold by the bank for $52,000 to $74,000, or about what they cost when they were built 20 years ago."
Seems like a deal. Cue the tiny violin.

"The banks are showing no respect for Las Vegas homeowners," Knott said. "Once again, the taxpayers who did not cause this problem, but who have been paying their mortgage and using the equity to take a vacation or send kids to college, are left with nothing but a worthless home to show for their hard work."
Ha-Ha! Worthless home, now we're making progress.

"That will result in more foreclosures, she said. People who've seen their home values undercut by banks are walking away and going down the block to buy the same home for half price."
Yes!!! I've said this all along. This is yet another leg down into the abyss.

[MR77]

My neighbor told me he was about 60 or 70K upside down on his townhouse. He was more than able to make the mortgage payment but decided to simply walk away from it. Apparently he has other property in CA and can run his home based business from there just as easily. He seemed to just vanish overnight. Decided he did not want the place and bailed.

Is it really that simple? I don't know that much about foreclosure but it seems pretty trendy and simplistic. I always figured the bank would sue you. Do they not bother anymore?

Here is another situation... A friend of mine bought a house in Aliante during the boom a few years ago. That person is now more than 180K upside down. Figuring that they would never even break even on the house, they hired a lawyer to hopefully work out a loan modification with the bank, but the bank will not negotiate because they have been paying the mortgage on time every month and they are not financially strapped. The lawyer is now telling them to stop paying the mortgage and if they wont allow a short sale or loan modification, then I guess the next step is to allow the bank to foreclose.

So what will happen to them? Will the bank come after them, or do these foreclosure lawyers find a way to get these home owners around being sued? I would guess the only way to protect yourself is to file for bankruptcy, but how can you qualify for a bankruptcy if you have money in the bank?.... I dont get how the whole process works. Its a brave new world I guess.

[gulfer]

What I find confusing through all of this, is that if you give your home up to foreclosure why you don't have to liquidate everything you have to pay this debt. I'm sure some law was passed that allows you to walk away with your entire 401K (seems to be the case) but for those that trash their place and put more burdens on the tax payer, I think they should lose everything thing they have.
I understand walking away is a business decision, but to steal and vandalize something that is not yours to me is illegal!!

[jfkIII]

I'm slightly confused...what cost is to the tax payer for someone that trashes their house and leaves a mess? Doesn't the bank bear the costs associated with clean up? They should...they own it at that point.

[olecapt]

The lenders could go after an ex-owner for the property damage. But unless it is very extensive and the ex-owner has assets it is not worth it. Cost the bank thousands and they can recover only if there are assets available. The still may not get their legal cost.

Then standard response to such an action is generally to go bankrupt. Then the bank gets little or nothing.

There is likely a criminal statute violation. But you would have to prove who did it. No prosecutor is gong to be very interested. Maybe if they made a youtube of the incident.

So it is mostly cleaned up by the bank and then resold. Often they sell without fixup. Just at a lower price. Lots of people who will buy those.

[BUGBULLY]

Our neighbors just moved out and gave the keys to the bank, for a $1500.00 check. Sounds funny to me, but that is what they are doing to help keep the home in decent condition. I know they had a list of things that had to be done. They have a pool, but their kids threw big rocks in it, but it still looks great. Needs some chemicals. They bought their house in 2006 for $400,000. It is less square footage then ours and we just paid $170,000. He said the bank was not working with him, so he is just walking away.

Supposedly, he has someone that is going to get him in another mortgage. He just has to show 6 months of paying rent on time. To me that sounds fishy, like that mortgage person is going to cut and paste. Is that not what got us into the situation we are in already?

[Daddys///M3]

Originally Posted by BUGBULLY

Our neighbors just moved out and gave the keys to the bank, for a $1500.00 check. Sounds funny to me, but that is what they are doing to help keep the home in decent condition. I know they had a list of things that had to be done. They have a pool, but their kids threw big rocks in it, but it still looks great. Needs some chemicals. They bought their house in 2006 for $400,000. It is less square footage then ours and we just paid $170,000. He said the bank was not working with him, so he is just walking away.

Supposedly, he has someone that is going to get him in another mortgage. He just has to show 6 months of paying rent on time. To me that sounds fishy, like that mortgage person is going to cut and paste. Is that not what got us into the situation we are in already?

If the defaulted mortgage is in his name there is no chance in hell that he is getting another mortgage for 3 years minimum. This applies to short sales as well. Cut and paste won't work, the guidelines are way too stringent now to get around a default even through fraudulent means.

[MomMom]

These people taking everything out of the house when they foreclose and/or leaving the place in ruins is plain old spite work and trying to sell whatever they could to make a buck from their ""lost investment"

"The bank wants to take away my house! OK, I'll give it to them"

There really is no other reason for it.

Although granted, some people do in fact, live like animals (pet feces/urine in the house, holes in walls, filth all over etc.) that doesn't account for the stealing of everything out of the house when they foreclose.

[BUGBULLY]

Originally Posted by Daddys///M3

If the defaulted mortgage is in his name there is no chance in hell that he is getting another mortgage for 3 years minimum. This applies to short sales as well. Cut and paste won't work, the guidelines are way too stringent now to get around a default even through fraudulent means.

That is what I thought. He just signed a 6 month lease, thinking he is going to buy another home.

[suetalks]

Originally Posted by MomMom

These people taking everything out of the house when they foreclose and/or leaving the place in ruins is plain old spite work and trying to sell whatever they could to make a buck from their ""lost investment"

"The bank wants to take away my house! OK, I'll give it to them"

There really is no other reason for it.

Although granted, some people do in fact, live like animals (pet feces/urine in the house, holes in walls, filth all over etc.) that doesn't account for the stealing of everything out of the house when they foreclose.

After looking at several properties for sale in LV I can attest to the fact that some people live like animals. We saw lots of properties no more than 4 or 5 years old that had holes in the walls, ceiling panels missing, cabinet doors off the hinges, dirty, dirty walls and or appliances. And yes, pet stains everywhere. Just amazing.

Sidenote: I am sure this is not only in LV...but anywhere. Just so happens we were looking there.