Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
How is this guy going to feel when eventually he is forclosed on and evicted (even if it's a couple years down the road), and he can't get another mortgage? Living in some crappy apartment is going to be quite the wakeup call for him.
$1,000,000 mortgage at about $6,000 a month times 12 months plus $20,000 a year in taxes. Over a 3 year period that could work out to almost $280,000 that they could bank over 3 years.
There is no morality available in this play unless you consider that self interest is the ultimate moral play.
In short, the banks helped get people elected. The people they helped get elected designated the citizen's money to benefit the banks.
IMO, the only moral play is to screw the banks as much as possible and at least help yourself to some of that tax payer benefit.
I'll note, I do not own, nor have I in the past. I have no self interest in this at all, other than to see house prices drop to the point that I can afford a modest home in a safe middle class neighborhood of Los Angeles. At a very middle class income of $85-100K a year, I am unable to afford even the smallest homes in middle class suburbs of Los Angeles such as Burbank, Culver City, Pasadena, etc. as starter homes in those areas(plumped by liar loans) are roughly 4.5-7x my income.
Seeing as I am single, support no one else, and my income is roughly double the household income in Los Angeles, I do not believe I am making an unreasonable wish.
In short, more power to those who are able to game the system that has been gaming all of us.
There are a few reasons for people to walk a way from a mortgage for a "business decision"
1. They live in a non recourse loan state like California where banks can't go after personal assets. They can only foreclose on a home only.
2. People who live in a recourse state who have zero assets to protect and don't have enough future income for the banks to go after (they could be some joe small investor who aren't a doctor or lawyer where the banks can see future income to go after).
I am betting this guy in the video (I can't play the video at my work computer at this time) fits into one of the two situations.
That's why these "walk away" websites are not designed for people who are careful with their money (have savings outside of retirement) or live in recourse loan states where banks can issue deficiency judgments.
I can't even begin to imagine how much more is sitting
in shadows with leased Lexus driving squatters.
I modified your comment as noted above.
Lots of squatters are perfectly current on stuff like car payments. (*) (++)
Just because you are making car payments, doesn't mean you own the car. Lots of those Lexii ( Lex - eye ),
Mercedii, BMW-ii -- are on the road with a 5 or 6 year loan. Most people who take out such a
ridiculous loan will buy another car before they ever see positive "equity" in their vehicle.
(*) ... and current on the big-screen-TV, leather furniture, etc.
(++) It's too bad they can't also be current on property taxes and HOA dues.
Buying stuff on time, or worse, leasing stuff, is a form of slavery.
How is this guy going to feel when eventually he is forclosed on and evicted (even if it's a couple years down the road), and he can't get another mortgage? Living in some crappy apartment is going to be quite the wakeup call for him.
He'll rent and then stop paying rent after the intial first and last. It takes a long time to evict a dead beat tenant. If he drives up in a nice car wearing a nice suit they probably won't do a background check.
He'll rent and then stop paying rent after the intial first and last. It takes a long time to evict a dead beat tenant. If he drives up in a nice car wearing a nice suit they probably won't do a background check.
Most people will be able to get an FHA loan within 3 years after defaulting on a loan.
Gotta love government sponsored loans.
Actually the more I think about it. I had neighbors who stopped paying for 2 1/2 years AND than put their home on as a short sell. Took them another 6 months to short sell their place.
So these people went through HAFA, paid zero mortgage/lived rent free for 3 years and the government will let them get an FHA loan in as little as 3 years.
So in essence there is no penalty for these people besides their credit being shot. But hey, they would have saved $200K on mortgages over 3 years. Most people would trade poor credit for saving 200K.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
