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Sorry, the studies conclusions just don't make sense. Very few people are proactive enough to do that "strategic default" - most people just wait. That's just the way it is. If the study was accurate we'd ALREADY have A LOT more defaults than we do.
Sorry, the studies conclusions just don't make sense. Very few people are proactive enough to do that "strategic default" - most people just wait. That's just the way it is. If the study was accurate we'd ALREADY have A LOT more defaults than we do.
Ken
Let's look at the figures again. From Northwestern University's and the University of Chicago's study... "26% of existing defaults are strategic."
26% of an existing amount does not add more to the total; it is a percentage of the total.
To me it looks like you spoke "for anyone", including those in default. Thats just how I read it..
It's inappropriate to continue this discussion within this thread. My initial statement clearly began with "just a personal observation". That cannot be translated to me speaking "for anyone" by anyone with any degree of rationality. I won't respond to any further comments on what I said, I will simply reiterate that this was my post.
"Just a personal observation, if this woman is head of the home loans division, she should look at Bank of America's procedures a little more closely, before making recommendations to the federal government. Bank of America has one of the least responsive mortgage departments I've ever seen, they are truly uncooperative."
It's inappropriate to continue this discussion within this thread. My initial statement clearly began with "just a personal observation". That cannot be translated to me speaking "for anyone" by anyone with any degree of rationality. I won't respond to any further comments on what I said, I will simply reiterate that this was my post.
"Just a personal observation, if this woman is head of the home loans division, she should look at Bank of America's procedures a little more closely, before making recommendations to the federal government. Bank of America has one of the least responsive mortgage departments I've ever seen, they are truly uncooperative."
I've read this quote now 3-4 times.. You keep posting this while ignoring your OTHER posting quoted which said that they are unresponsive for BOTH those current and uncurrent.
I'm glad you wont continue discussing what YOU said because its clear as day.. You simply mispoke, and rather than admit so, you sit here and argue like you didnt say it when you clearly did..
I don't see how this country can avoid another Great Depression. It'll be worse than the first one because most Americans are no longer self-sufficient (living on farms).
Bank of America's mortgage department is not responsive. To anyone. Who has a question. Whether they are in default on their mortgage loan. OR NOT.
PGH insists that I clarify this post.
Bank of America's mortgage department is not responsive. To anyone that I know of, or have read about, or have heard discussing Bank of America mortgage problems on television or radio or on the internet. Who has a question. Whether they are in default on their mortgage loan. OR NOT.
Sorry, the studies conclusions just don't make sense. Very few people are proactive enough to do that "strategic default" - most people just wait. That's just the way it is. If the study was accurate we'd ALREADY have A LOT more defaults than we do.
Ken
Alot of people do. Particularly investors. I know one investor who walked away from 30 different houses in FL because the cash flow did'nt cover payments and he saw no equity upside in the forseeable future.
Overheated markets like CA, NV, AZ and FL are seeing this in spades, both in investment and o/o homes. At one point at the height of the bubble it was estimated something like 40%+ of all real estate transactions in Vegas were investors. Today, they own their own homes and they're underwater property investments are sucking hundreds or thousands of dollars out of their checking accounts every month. Do you think these people are hanging on or walking away? Your location says you are moving to PHX. Start talking to some realtors down there. I bet they see it alot.
There are also alot of people walking away from houses in CA - partiuclarly in the inland empire and inland areas of Nor Cal. People may stretch to buy a house if the value is going up, but once you realize you are $300k upside down, and it will a decade plus for you to be above water again, the idea of eating beans and rice because you're so house poor looks less and less fun. Remember hearing about "jingle mail" a few years ago? Go over to the real estate or mortgage forums and do a search. You'll see tons of threads where people debate & justify walking away for the mortgages. I think its slimy, but others say "it's just business".
I think this change of attitude is what really caught the banks flat footed. They never designed their loan reserves to cover the losses this change of attitude is driving.
Alot of people do. Particularly investors. I know one investor who walked away from 30 different houses in FL because the cash flow did'nt cover payments and he saw no equity upside in the forseeable future.
Overheated markets like CA, NV, AZ and FL are seeing this in spades, both in investment and o/o homes. At one point at the height of the bubble it was estimated something like 40%+ of all real estate transactions in Vegas were investors. Today, they own their own homes and they're underwater property investments are sucking hundreds or thousands of dollars out of their checking accounts every month. Do you think these people are hanging on or walking away? Your location says you are moving to PHX. Start talking to some realtors down there. I bet they see it alot.
Actually, we're NOT moving to Phoenix (everyone seems to think that everyone living in AZ live in Phoenix - not surprizing considering it's BY FAR the biggest center of population), we're moving to land we own SE of Tucson.
Regarding Phoenix though - what is happening there seems to be the exact opposite of what the "doom and gloom" crowd has been saying. Homes - particularly the cheaper ones - are in fact being snatched up rather than being dumped, often resulting in bidding wars for such homes.
Ken
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