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Thanks, very nice from the outside... I can understand why some one wants to live there who can afford it and is not hidding because of people going after them....It should be a house to really enjoy....maybe there is a more decend and honest way to live there without hurting other people finacially.
Who am I hurting? The bank? they get my old house, the sell it and all is well. Get over it. And to the jerk calling it an armpit, did you see my new home? how do you like them apples? I wont even sahre what i paid because then you will be extremely pissed off. Lets just say you can even get a 3 bedroom shack in the luxurious parts of LA such as Watts and East LA and Hollywood for that matter. Good luck!
I actually live in the so called "arm pit" called the IE. It's actually a pretty nice place to live and raise a family. I think a lot of people have already done the "switch and bail" technique and I think the lenders have already started to wise up on this practice.
Yes, it'll hurt future buyers by raising interest rates, bankrupt some banks, and increase regulations making it harder for future home buyers. But, that has already been happening in the area with the increased regulations stemming from foreclosures and the Fed.
What I'm curious about is whether the risks/losses actually merit the rewards. Since in essence your still purchasing in a "declining" market, then your new house will still decline in value from the price you purchased now. How much was transaction costs, closing costs, moving costs, new interest rate? and are all these costs still less than the 100k? 200k? saved? Is your monthly drastically less? If you were able to secure a renter... why not just keep the place and and just rent it off? Rent off some of the extra rooms at your new place...etc. to cover any differences so that you can still keep your old place? After all, at least then you can still recover some "equity" if/when you sell the old place in the future.
I don't know too much about how credit works, but I thought it was something built up over years... and something that can be lost easily. Credit provides flexibility for the future... is that something worth all the risks?
I'm not criticizing you, but just curious if all these different costs and options were considered when making your decision. Best of luck in your new place
You trademark that one and I'll do "Be Happy and Move."
Back to the OP...
Because the bank is an institution rather than your cousin Bob, it is easy to depersonalize. I think it is selfish and narrowminded to think that just walkaway has only consequences for the bank. Banks are folding, people are losing jobs for starters. Banks are raising interest rates on credit cards in order to offset the loses, so the person that has to charge their food and gas because their son needed emergency surgery is getting hammered because of people just walking away. This is personal.
This behavior impacts us all. You can rationalize it anyway you want, but the banks will MAKE UP the losses on the backs of other consumers. So...are you okay that your mother, sister, brother, cousin will be paying more interest because of your behavior?
They fell for my bait. I just was conducting a little experiment to see what the feeling was on the buy and bail currently catching speed out there. Also I was bothered that so many of you (besided crazymama) chastised and stoned this guy for considering it?
For the record, i dont agree with the OP is doing SINCE he can afford it. But if you are one who messed up, realize you cant afford it and it is hindering you financially and still need to eat..walking away might be the best decision.
To be honest though: the though has crossed my mind, buy and bail. The Inland Empire is getting slammed hard. Chuck knows. I think most (not all) has thought about it but wont act on it.
To boot can you believe they even bashed our beautiful area Chuck? Same on MissHollywood.
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