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If you couldn't handle the payments, you shouldn't have signed the mortgage. Yes, I realize that a SMALL percentage of people have some sort of hardship that was not under their control, and now need to default, but the majority of people walking away were either stupid enough to buy too much house, or stupid enough to sign for a usurious loan rate, or are just peeved that their house's perceived value has dropped and they now owe more than it can be sold for. Yes, those people are irresponsible and shouldn't receive any breaks.
It's not fair for those of us who are financially responsible and haven't gotten in over our heads, and haven't accrued debt to have to pay for the greediness and irresponsibility of others. And yet, we are...and we are getting NO breaks for our responsibility, whilst the idiots are getting off easy.
Thanks ever so much.
We have a reasonable first mortgage payment,just over $800/month.
We have a high second however,almost $1400/month.This is a short term loan(5 years) and was higher interest but was the best thing at the time.
Fast forward three years and now we are making about $25,000/ year less...and it seems the second mortgage was based upon a value that was,according to the appraiser I just finished talking to,WAY out there....
We had the house on the market for 520 days,dropped the price almost $50,000 and the appraiser appraised it last week for $168,000(however the revisit we just had he said he could probably bump this up to about $180,000ish).
We owe $198,000 on a house we do not want to keep,paying $2200/month in payments and the responsible thing to do is to stay with the house???
No, it's the mentality of "I don't want your hand in my pocket yet again, take care of the mess you willingly made for yourself."
If I WAS "doing okay" it wouldn't be an issue. But the irresponsibility of the masses has caused me an unfair financial burden. How is that equitable?
It may not have been in their control. I am doing OK, but circumstances could have been different. My partner, through no fault of their own, had to take a 30% paycut to keep a job. Now, 30% is a lot of money and it could very easily have had a very negative effect on us. It could have made the difference between keeping our house or not keeping it.
Ultimately, on a personal level, how is someone else walking out on a mortgage REALLY going to affect you? And I mean on a personal level, not a national or world wide level.
Why are you perpetuating this irresponsibility? *sigh*
Would it be better to let the children starve?
The simple fact is that our economy cannot sustain the enormous amount of debt the system. Debt that is growing exponentially thanks to the miracle of compound interest. Debt that will continue to stifle and choke our country as interest from that debt diverts more and more money away from goods and services and feeds it to the banks.
What people need right now is practical tools and information for how to get out from overwhelming debt so that they can afford to feed their families, keep a roof over their head, and imagine a future other than destitution.
Foreclose on your home and you have bad credit for seven years. Stay in that home and spend the rest of your life working three jobs and eating rice and potatoes while your children go barefoot. You tell me what is the responsible thing to do...
It's not fair for those of us who are financially responsible and haven't gotten in over our heads, and haven't accrued debt to have to pay for the greediness and irresponsibility of others. And yet, we are...and we are getting NO breaks for our responsibility, whilst the idiots are getting off easy.
I agree. I want to refinance my home to lower my payment. If my house appraises for what I paid for it a few months ago then I have to have 20-25% down. And that is a big if. I put 20% down when I purchased but if I were to have only 10% equity I am stuck paying an extra $200/month at the higher interest rate. It sucks because I have been responsible.
Quote:
Originally Posted by EM1956
Ultimately, on a personal level, how is someone else walking out on a mortgage REALLY going to affect you? And I mean on a personal level, not a national or world wide level.
Whenever I post about walking away from debt, several people like to jump on their soapbox and tell the tale of how they lived life responsibly, bought a home they could afford, make the minumum payments on their credit cards every month and so on.
That's all fine and dandy, however, you should know that it is mathematically impossible to pay-off all the debt that currently exists in our economy. It is never, ever going to get paid off.
This idea that everyone "needs to pay what they owe" is akin to telling the passengers on the Titanic to all grab their coffee cups and run below to start scooping water out of the ship to keep it afloat. Their desperate efforts would have made no difference to the fate of the ship. The water was filling the ship too fast, and eventually sucked it into the abyss.
However, let me say that the banks and credit card companies very much appreciate your noble and honorable thinking. Their goal is to keep you and everyone else in this country in debt peonage, slaving away the rest of your feeble years to pay interest on debt. That's how they make money, you see?
And they also appreciate you pointing fingers and blaming your neighbors. This suits them just fine, because then Bank of America, for example, doesn't have to reveal how much it paid executives in bonuses. Bloomberg.com: U.S.
So ZugZub, Suzie02, and others like you, on behalf of Citibank, Bank of America, JP Morgan Chase, Wells Fargo, and AIG, I want to thank you for your loyalty, your honesty, your patronage.
Although I am not too badly upside-down on my house (even through I did put 20% down a few years ago) when I had a realtor in for a market evaluation it was suggested to me that I would certainly lose money on a sale and one alternative to negotiating a short sale would be to stop making payments and move when forced out in 5 to 12 months.
The attitude from some in the industry is that the finance system is trying very hard to take care of itself and you need to watch out for your assets and be open to any option for survival.
I agree. I want to refinance my home to lower my payment. If my house appraises for what I paid for it a few months ago then I have to have 20-25% down. And that is a big if. I put 20% down when I purchased but if I were to have only 10% equity I am stuck paying an extra $200/month at the higher interest rate. It sucks because I have been responsible.
At the tune of $200 per month.
I still don't understand how John Doe cost you. I mean, how did he personally cost you 200.00 per month? He didn't personally cause the interest rate- didn't you sign up for that interest rate? He is not personally affecting the value of your home or your equity.
Whenever I post about walking away from debt, several people like to jump on their soapbox and tell the tale of how they lived life responsibly, bought a home they could afford, make the minumum payments on their credit cards every month and so on.
That's all fine and dandy, however, you should know that it is mathematically impossible to pay-off all the debt that currently exists in our economy. It is never, ever going to get paid off.
This idea that everyone "needs to pay what they owe" is akin to telling the passengers on the Titanic to all grab their coffee cups and run below to start scooping water out of the ship to keep it afloat. Their desperate efforts would have made no difference to the fate of the ship. The water was filling the ship too fast, and eventually sucked it into the abyss.
However, let me say that the banks and credit card companies very much appreciate your noble and honorable thinking. Their goal is to keep you and everyone else in this country in debt peonage, slaving away the rest of your feeble years to pay interest on debt. That's how they make money, you see?
And they also appreciate you pointing fingers and blaming your neighbors. This suits them just fine, because then Bank of America, for example, doesn't have to reveal how much it paid executives in bonuses. Bloomberg.com: U.S.
So ZugZub, Suzie02, and others like you, on behalf of Citibank, Bank of America, JP Morgan Chase, Wells Fargo, and AIG, I want to thank you for your loyalty, your honesty, your patronage.
I still don't understand how John Doe cost you. I mean, how did he personally cost you 200.00 per month? He didn't personally cause the interest rate- didn't you sign up for that interest rate? He is not personally affecting the value of your home or your equity.
One person alone doesn't screw up the system. But millions together do.
I myself I am being conservative with my money so by not spending as much I am costing people their jobs. That is the way he system works.
So you still haven't said how someone walking away from their mortgage cost you money. The market today is what is causing your problem, not the people.
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