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We were watching House Hunters and this stupid young couple decided to short sale their condo, simply because the value went down. It was just in his name. Now they are buying a much more expensive SFH in her name.
What is wrong with people? I have heard of this happening over and over. People who CAN afford to pay their mortgage, but choose to short sale or go into foreclosure simply because they don't like what happened to the market.
Why is this allowed? Doesn't anyone have any honor anymore? Doesn't signing a contract mean anything to anyone anymore?
Tell that to the banks who are screwing us over left and right...
If you sign a contract with a bank for free checking in 04 does the banks have that "HONOR" to follow through today...NO THEY DONT..thats why they charge you 20 bucks a month just to put your money in the bank and people like Heritage just sits there and give them their money.
Last edited by triumphantmale; 11-27-2011 at 09:02 PM..
I agree its a business decision. I think people put morals on it when its individuals and not corporations. People say that all these individuals defaulting are putting a burden on tax payers, well corporations do the same thing. In grand scheme of things, I have mixed feelings on it. I have a very nice and much larger home in foreclosure across the street from me. More than likely it will eventually sell for less than what I paid. The flip side is, if I lived in a rotten neighborhood and had a snow ball's chance in hell of selling it, then I can see where default would be an option.
I know two people that did strategic defaults. Both could afford the mortgages. One bought a house a few blocks from her current home. She bought during the boom and paid a lot for her small rancher. When the real estate bust took over, she was upset that a home twice the size was selling for less than what she had paid. So she bought the second house and dumped the first. The other person dumped and then waited out the 3 yrs to buy again. He ended up in a much nicer neighborhood. The biggest thing I noticed is that very nice neighborhoods are now starting to become mediocre. High real estate costs kept out rif raft. Not so much the case anymore.
EXACTLY honor when you borrow from individuals and NOT greedy SCUM banks and CORPORATIONS RUINING AND RUNNING THIS COUNTRY...
Tell that to the banks who are screwing us over left and right...
If you sign a contract with a bank for free checking in 04 does the banks have that "HONOR" to follow through today...NO THEY DONT..thats why they charge you 20 bucks a month just to put your money in the bank and people like Heritage just sits there and give them their money.
1) No, they do not have to honor it forever. The agreement is not written that way. That would be a poor financial decision on their part. They never signed a contract saying it would be forever.
2) None of my banks charge me money to put money in their bank. As a matter of fact, they pay ME money to hold my money for a while. I use all local banks and CU's. You can do the same thing.
EXACTLY honor when you borrow from individuals and NOT greedy SCUM banks and CORPORATIONS RUINING AND RUNNING THIS COUNTRY...
Actually, if people did not BUY more than they could afford and PAID BACK the money they borrowed, the country would not be in as much of a mess as it is. Seems to me the screwing is being done by some consumers.
I agree that the consumers bear a lot of the burden on the mess and personally do not have respect for those who walk away as 'financial decision'. Only the really tough cases should be allowed to IMO. I understand that in Europe (Spain), that if one defaults and goes through foreclosure, not only do you lose the house but also have to still pay back the loan! I don't know the details on that one, just hearsay from a friend who lives there.
Anyhow, I'm about to purchase my first place. I am bracing myself for the possibility for it to depreciate in the foreseeable future. If it appreciates, that would just be a nice surprise. I am 40 and have rented all my life. I have not stepped into home ownership because of the risks involved. I have always learned to never borrow more than 2.5 times your annual salary. I find myself since 10 years ago in one of the most expensive places in the country but made the decision a couple of years ago to start looking and find a place to buy. I have a 300 sq ft apt and have been able to save some money for this and to build my retirement and cushion. Even with saving, I only have a 10% dp, but that also was a gamble/choice as I decided to max some retirement/investment along the way. I have paid back all my student loans as of 4 years ago, all debt and have a 2006 car that is paid off for over 3 years now. I plan to have it for another 100K miles if it will go. I have a $ cushion and am going into homeownership.
I realize that some of this is just a blessing/luck - whatever - that I have found work and have a stable job, that timing wasn't where I bought at height, but it's also true that I have also prolonged many things in life to make this happen. I don't think all people are as willing to prolong and want things now and sometimes life isn't in order. I don't want to preach on that, but fine, it's a risk.
The banks were taking a risk too. And I understand that, but I'm of the mind that you just watch out for yourself. And if you signed on the dotted line, ...well... that's a bitter one to deal with.
So, I'm not saying I'm necessarily the right way to go - some prefer to live more in the moment and take the risk. There's probably a happy intermediate place. But I think many MANY people got into their own mess.
If my place depreciates and I find myself underwater, I won't try and bail. I just can't see myself doing that unless something major happens (i.e. I am in a terrible accident and can't work and need special care and have to sell to move home). I found a place that I like and made a decision that it will be my home, at least for the foreseeable future and then when the time comes that I want to sell, accept there may be a loss involved in that transaction.
...I am still trying to figure out where or how the evil
big bank TWISTED someone's arm to buy a house?
Why is this concept so hard to get?
I'll write this R E A L S L O W L Y so you can understand:
The job of the banik is to be the gatekeeper. It is their job to PREVENT
someone from buying a house if they don't have sufficient income, proof
of that income, or have a record of NOT paying for other stuff on time!
Who cares if someone wants to buy a house? Why do you care?
Lots of people want to get loans for stuff, but don't deserve one.
For a brief, shining moment in time, all the scumbags that wanted a loan
got it. Somehow, you think it was OK for the banks to lend to them.
I don't. It's their fault. It should have ended with the application - DENIED!!!
( It's a difficult concept. You might want to read the post twice. )
Another question: Why was my post quoted in its entirety right below the original post? If you are not
going to address any particular point, just use the more efficient [Reply] button instead of the [quote] button.
I also noticed that your location is "Location: The land of gubmint handouts to the lazy"
TARP = "gubmint handouts to the lazy" - "Lazy" banks and bankers, that is.
It reminds me of the cigarette companies being sued...It's clearly HORRIBLE for your health to smoke, but they're still able to make money from selling cigarettes...and then there's the junk food industry - they're trying to reign that in with regulation and public education, but I can still buy a big mac and x-large fries every night of the week and no one is going to stop me even though it's going to ruin my health and cost big bucks in health care that we all end up paying for...
It reminds me of the cigarette companies being sued...
... junk food industry ...
The difference is that the job of these companies is to sell sell sell.
They are not specifically regulated by the government to serve as agents to safeguard the depositors'
money. The hamburgers or cigarettes are wholly owned by the vendor. The money being lent by the bank
belongs to someone else. Lending it to someone who isn't qualififed is a dereliction of fiduciary duty.
I don't have sympathy for someone who croaks from cigarettes or fast food.
I don't have sympathy for someone who stretched out to buy the biggest friggin' house they
could qualify for or the flippers buying and selling new properties.
The difference is that it is not the job of McDonalds to tell the porker
at the counter they are not entitled to eat any more of their stuff.
It WAS and IS the job of the banker to deny people loans they cannot afford.
I see your point, but I have no delusions that the banks are there to make money, not a public service. There is irresponsibility on both sides, IMO. People bought into the idea that a buying a home is a good financial investment. Banks were banking on others banking on the market's continued upward trend. It's Greenspan's fault for trying to smooth over the dotcom bust with a housing bubble. There, now neither the banks nor the buyers are to blame.
It's Greenspan's fault for trying to smooth over the dotcom bust with a
housing bubble. There, now neither the banks nor the buyers are to blame.
Can't we make this a tri-fecta and add Greenspan to the mix?
Of course, Greenspan was the head banker at the banks' bank, so ... ( my head is going to explode ).
I might add that since there aren't really any depositors any more,
the banks took taxpayer money and commited a dereliction of fiduciary duty.
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