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But there are no false statements. There are no false values.
If they asked..."do you intend to walk away from your first property and have it foreclosed" and he answered in the negative he might have a problem. But they did not ask and he did not answer.
OK - so my house is not worth what it was last year - so its ok for me to say "screw the bank and my responsibilities?" And its ok because when I bought the house I never told them that I would? Gimme a break
OK - so my house is not worth what it was last year - so its ok for me to say "screw the bank and my responsibilities?" And its ok because when I bought the house I never told them that I would? Gimme a break
As I posted earlier there are tens of thousands of families in Las Vegas right now who should do exactly that. Failure to do it is irresponsible to your duties as head of household. Particularly true if there are children involved. The pooch has been screwed...we are merely discussing when you take the bad news. There is very low probability that one can recover from a loss of 35 or 40% on the value of a low down payment home.
As I posted earlier there are tens of thousands of families in Las Vegas right now who should do exactly that. Failure to do it is irresponsible to your duties as head of household. Particularly true if there are children involved. The pooch has been screwed...we are merely discussing when you take the bad news. There is very low probability that one can recover from a loss of 35 or 40% on the value of a low down payment home.
There is no "loss" unless you SELL when the value is down.
As I posted earlier there are tens of thousands of families in Las Vegas right now who should do exactly that. Failure to do it is irresponsible to your duties as head of household. Particularly true if there are children involved. The pooch has been screwed...we are merely discussing when you take the bad news. There is very low probability that one can recover from a loss of 35 or 40% on the value of a low down payment home.
Not only is is it irresponsible to decide to let your house go into foreclosure as the head of household but it is a parent as well! I can understand if you have to - but because times are bad and values are down? NO... it is wrong...and will only make matters worse for those of us who are responsible.
Quote:
Originally Posted by RoaminRed
There is no "loss" unless you SELL when the value is down.
Something tells me that he wasn't planning to share the profit with the bank when he sold the house. But it's okay to expect the bank to take the entire loss?
Not only is is it irresponsible to decide to let your house go into foreclosure as the head of household but it is a parent as well! I can understand if you have to - but because times are bad and values are down? NO... it is wrong...and will only make matters worse for those of us who are responsible.
exactly.
To the contrary. The likely time to the next move in the present environment is much less than the likely recovery period. That means the owners will virtually all end up in foreclosure. Their choice is now or four or five years down the road. The impact of a foreclosure takes a long time to dissipate. So they take it now and start the clock or take it five years from now and start the clock then.
And it is not wrong. It is a financial decision with no "morality" involved. In fact morality requires you do the right thing for your family.
To the contrary. The likely time to the next move in the present environment is much less than the likely recovery period. That means the owners will virtually all end up in foreclosure. Their choice is now or four or five years down the road. The impact of a foreclosure takes a long time to dissipate. So they take it now and start the clock or take it five years from now and start the clock then.
And it is not wrong. It is a financial decision with no "morality" involved. In fact morality requires you do the right thing for your family.
These are civil business decisions.
Sorry - I feel this is a backwards way to look at it....It will cause more problems for the ecomomy......I will simply agree to disagree.
To the contrary. The likely time to the next move in the present environment is much less than the likely recovery period. That means the owners will virtually all end up in foreclosure. Their choice is now or four or five years down the road. The impact of a foreclosure takes a long time to dissipate. So they take it now and start the clock or take it five years from now and start the clock then.
And it is not wrong. It is a financial decision with no "morality" involved. In fact morality requires you do the right thing for your family.
These are civil business decisions.
Exactly... those touting morality here fail to realize that banks, mortgages, corporations all fail to run without morality, without caring about individuals,, etc.. There is no morality where their business is concerned.
I think it's more immoral to NOT get yourself and your family out of a potentially financially harmful situation.
yeah.. it's not neccesarily teh best scenario.. but it's what worked for him and hisf amily..
The BANKS don't really care about the "economy" just their wallets. If they did they would work together with people in ARM mortgages to help keep them in their home and keep the money flowing to them, rather than just stand there and let it happen. Maybe if this guy was given the opportunity to fix his mortgage at something he could afford, he woulnd't have gone out and done what he did.. Now this doesn't neccesarily mean that he didn't make a mistake.. but so did the bank by giving him this mortgage too!
Banks are not workign with people.. I know .. I've been trying and trying and trying for MONTHS because I can't afford my increase from 6.95 to the 9.95 that it jumped up too.. and I couldn't refi because I lost equity!! But, they are stonewalling and refusing to work with me. I'm not looking to get out because i owe more on it.. Im' not looking to stiff them.. but i'm looking to work something out..
If I could.. I would do just what this guy did.. but i'm not a position too ,unfortunately.. so.. the next best ting for me may be to live in my house for free while I try to either short sale or foreclose if I can't sell (which is a real possiblity).. atleast I'd get SOMETHING out of my house.. The bank didn't care about me.. why should i care about them!
The bank didn't care about me.. why should i care about them!
Banks are not charitable institutions, they are businesses.
Let's say you applied and signed a mortgage for which you were approved, and you bought a house. You pay your mortgage on time and all is good until...a few months or years later, the bank says "Whoops, our bad. We've changed our mind about this house, you have to get out now and we're not going to reimburse you for anything, you'll have to eat the loss."
Of course you'd be upset, and say "But you signed a contract with me, you have to honor it!" And the bank replies "You don't care about me, why should I care about you?"
Exactly... those touting morality here fail to realize that banks, mortgages, corporations all fail to run without morality, without caring about individuals,, etc.. There is no morality where their business is concerned.
I think it's more immoral to NOT get yourself and your family out of a potentially financially harmful situation.
yeah.. it's not neccesarily teh best scenario.. but it's what worked for him and hisf amily..
The BANKS don't really care about the "economy" just their wallets. If they did they would work together with people in ARM mortgages to help keep them in their home and keep the money flowing to them, rather than just stand there and let it happen. Maybe if this guy was given the opportunity to fix his mortgage at something he could afford, he woulnd't have gone out and done what he did.. Now this doesn't neccesarily mean that he didn't make a mistake.. but so did the bank by giving him this mortgage too!
Banks are not workign with people.. I know .. I've been trying and trying and trying for MONTHS because I can't afford my increase from 6.95 to the 9.95 that it jumped up too.. and I couldn't refi because I lost equity!! But, they are stonewalling and refusing to work with me. I'm not looking to get out because i owe more on it.. Im' not looking to stiff them.. but i'm looking to work something out..
If I could.. I would do just what this guy did.. but i'm not a position too ,unfortunately.. so.. the next best ting for me may be to live in my house for free while I try to either short sale or foreclose if I can't sell (which is a real possiblity).. atleast I'd get SOMETHING out of my house.. The bank didn't care about me.. why should i care about them!
I'm so sorry to hear you are having such a difficult time. And in your situation this is probably the only way for you to rectify your situation. But the OP's friend just doesn't want to pay anymore - not that he can't - he doesn't want to - this is where I have the problem.
I wish you the best of luck in your situation. From what I understand there is a program that was released recently for people in situations like yours - a refinance may be possible for you - even though the value of the house is down.
Again - Best of luck to you.
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