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Re: Article in Newsday describing the foreclosure process.
OK, so the mortgage rate is 6.375% fixed, always paid on time, not backed by Fannie Mae or Freddie Mac.
Option 1: Continue doing "the right thing" and pay monthly payment.
Option 2: Stop paying mortgage payments. It takes 3 years to foreclose. I can save about 100K in that time. Find a rental for a few years until credit is worthy of purchasing another home. I have a massive down payment, and I am out of my previous mortgage. In the meantime, during the 3 years waiting for final foreclosure, the mega bank is falling all over itself to offer me deals that it would never offer an upstanding customer that pays on time.
Re: Article in Newsday describing the foreclosure process.
OK, so the mortgage rate is 6.375% fixed, always paid on time, not backed by Fannie Mae or Freddie Mac.
Option 1: Continue doing "the right thing" and pay monthly payment.
Option 2: Stop paying mortgage payments. It takes 3 years to foreclose. I can save about 100K in that time. Find a rental for a few years until credit is worthy of purchasing another home. I have a massive down payment, and I am out of my previous mortgage. In the meantime, during the 3 years waiting for final foreclosure, the mega bank is falling all over itself to offer me deals that it would never offer an upstanding customer that pays on time.
So...where is the incentive?
It doesn't always take three years.
Your credit will be shot and you'll have a hard time finding a landlord who'll rent to you.
Bad credit will impact your car insurance.
You'll have to wait at least 7 years to buy another house, unless you pay cash.
Shall I go on?
Oh, and if the proceeds of the foreclosure are less than what you owe the lender--the difference will be considered income by the IRS and you'll pay tax on the deficiency.
Not to mention the bank can (theoretically, anyway) sue you for the difference. They don't usually, but unless you're planning to hide your $100,000 in a mattress, I can imagine having a big fat savings account would be the equivalent of waving the red cape at a bull, you know?
There is an option 3 which would be to refinance at a lower rate. Defaulting is irresponsible and many who do it are whining how unfair they are treated because they had a bad run, tough! My mortage company just refinanced me to 2.25% less than my original loan, no points and rolled the minimal closing costs into the new loan amount. Well worth my effort...
Re: Article in Newsday describing the foreclosure process.
OK, so the mortgage rate is 6.375% fixed, always paid on time, not backed by Fannie Mae or Freddie Mac.
Option 1: Continue doing "the right thing" and pay monthly payment.
Option 2: Stop paying mortgage payments. It takes 3 years to foreclose. I can save about 100K in that time. Find a rental for a few years until credit is worthy of purchasing another home. I have a massive down payment, and I am out of my previous mortgage. In the meantime, during the 3 years waiting for final foreclosure, the mega bank is falling all over itself to offer me deals that it would never offer an upstanding customer that pays on time.
So...where is the incentive?
No incentive. If you're deep upside down you better off saving for three four years. Foreclosure can take FIVE years even Eight years in new York
The real estate agent is bias. I know someone who went through this and after four yeas almost five years now still in the house. they have credit cards HIGHER than my limits! but They don't use them.
A lot of people are doing this. Banks should throw them out after 3 missed payments. Lowlifes taking advantage.
It's amazing to see people's response to things like this. 3 missed payments throw them out. I don't see these organizations making the tax payers whole for the money they received. They could also help a lot of people if they would refi without all the madness. A lot of people go through an endless loop of paper work just to get denied for a refi. A lot of those people would keep the house and pay on time if they could drop a few hundred from the monthly payments.
Like the OP said a regular customer trying to refi get put through the hoops but when you're at risk of defaulting they offer you the world. Oh they are still borrowing at an insanely discounted rate and getting subsidies for helping people stay in their homes.
You still think the big guys are the victims here?
A lot of people are doing this. Banks should throw them out after 3 missed payments. Lowlifes taking advantage.
Because the banks never take advantage of people :ro lleyes:
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:ro lleyes:
