New law makes homeowners liable in foreclosure (Gilbert, Prescott: loans, house)

[Boompa]

Originally Posted by roosevelt

Obama is now demanding banks reduce mortgage payments. I have heard of governments in the past buying votes with taxpayer money but using private companies to do it is new to me. What is he trying to do, ruin the banking industry? If banks go under, the government does not have enough money for the FIDC to cover deposits. Let nature take its course; if people lose their houses they can walk away from it; the Arizona law will probably be overturned; think about people who had a lot of equity, lived in the house, went out and got a mortgage, and went into foreclosure; they got away with it and kept the money. Think of someone who couldn't make the mortgage payment so they rented the house because they couldn't sell it and made up the difference between the rent and mortgage payment while they moved back in with their parents. They never lived in the house and were not speculators. If you think legislators in Arizona do not think bills through, you should see Washington with their political agenda ramming through bill after bill without even reading them.

"Obama is now demanding" well we know where this is going.
We paid off these "Toxic Assets" when Bush got the TARP Passed, then the AIG Bailout paid them off again. So the taxpayer should already own the mortgages not the Bank

[zac14]

Originally Posted by poolgirl51

Nothing is so last minute that you can't slow things down to READ the paperwork and if it is confusing have an attorney look at it. If they try and tell you you don't have the time then get up and walk away. Trust me they will give you the time. You always had the power to say no. Again it all boils down to personal responsibility. The lack of it at ALL levels is running the country into the ground.

Thank you for saying this. In the end everone tries to blame someone else but in the end it is themselves at fault.

[Boompa]

Excuse me if I find the practice of buying a second house and then dumping the first house with the upside down mortgage on the taxpayers repulsive.
The fact that the banks paid off the required number of politicians to change that situation doesn't surprise me

[roosevelt]

Originally Posted by Boompa

Excuse me if I find the practice of buying a second house and then dumping the first house with the upside down mortgage on the taxpayers repulsive.
The fact that the banks paid off the required number of politicians to change that situation doesn't surprise me

If the government says it is legal to default on your mortgage, and many states allow this, then why shouldn't people take advantage of it?

It is the law, it is too easy for the homeowner to let a lender foreclose. The laws were passed to keep homeowners out of bankruptcy if they fell on bad times but now it is used by speculators renting out homes and keeping the rent money while not making payments. It is being used by homeowners that can afford their mortgage payments but see their house worth half as much so they default and walk away, probably buying a similar house for half as much.

[Boompa]

Originally Posted by roosevelt

If the government says it is legal to default on your mortgage, and many states allow this, then why shouldn't people take advantage of it?

It is the law, it is too easy for the homeowner to let a lender foreclose. The laws were passed to keep homeowners out of bankruptcy if they fell on bad times but now it is used by speculators renting out homes and keeping the rent money while not making payments. It is being used by homeowners that can afford their mortgage payments but see their house worth half as much so they default and walk away, probably buying a similar house for half as much.

Because it creates those very """Toxic Assets """that destroyed our economy. Did you think that no one would get stuck for the bills you defaulted on? We the taxpayers did?

[poolgirl51]

Originally Posted by roosevelt

If the government says it is legal to default on your mortgage, and many states allow this, then why shouldn't people take advantage of it?

It is the law, it is too easy for the homeowner to let a lender foreclose. The laws were passed to keep homeowners out of bankruptcy if they fell on bad times but now it is used by speculators renting out homes and keeping the rent money while not making payments. It is being used by homeowners that can afford their mortgage payments but see their house worth half as much so they default and walk away, probably buying a similar house for half as much.

I don't know how folks sleep at night when they do such things. A contact is a contract and to default when you can afford to pay is immoral and we all end up paying the bill. I am upside down on my house but I would never ever walk away!! I will sit it out until the market turns and if it doesn't then it is just the risk that I took. I bought my home to live in and that is exactly what I will do. Sorry I don't mean to rant but my home value continues to slide because of sleazy individuals who walk away when they can afford to pay and it just pisses me off big time.

[Greatday]

Senator Pierce, the sponsor of SB1271 has asked the Governor for a special session to repeal this piece of legislation.

Senator Pierce understands that this new law cannot be allowed to go into effect.

The chances are very good that it will be repealed.

[Boompa]

Originally Posted by Greatday

Senator Pierce, the sponsor of SB1271 has asked the Governor for a special session to repeal this piece of legislation.

Senator Pierce understands that this new law cannot be allowed to go into effect.

The chances are very good that it will be repealed.

So they can get back to creating more "toxic assets"

[Greatday]

Originally Posted by Boompa

So they can get back to creating more "toxic assets"

No - the law was not intended to create the punitive damages on owner occupied properties as it ended up doing.

It had / has nothing to do with "toxic assets".

[Boompa]

Originally Posted by Greatday

No - the law was not intended to create the punitive damages on owner occupied properties as it ended up doing.

It had / has nothing to do with "toxic assets".

What are bundled worthless mortgages, TOXIC ASSETS, the thing that brought about the collapse

Sort of like you save a nickel at WALMART, and so do ten million others five times a month. Pretty soon stores are closing and suppliers are moving their operations overseas. But you saved a nickel