patrick.net

Another deadbeat that doesn't want to take responsibility for their purchase. Thanks.

-Taxpayer

http://finance.yahoo.com/loans/article/110161/doubling-down-on-housing?mod=loans-home

I'm not a big fan of the strategic defaulter. Those are the people who have the ability to pay for their house and aren't experieincing any type of financial crunch, but believe it's a poor financial decision to stay there so are waltzing away. Often they buy another home before the default so that they can have a cheaper, larger, better place for less. In short, strategic defaulters consider this to be a purely financial decision.

If this is you, I would respectfully tell you that I disagree with your plan. That being said, there are many people who are considering the same thing. If you look at loansafe.org you'll find that you're in great company.

Not many friends here will help you with your plan.

From what I've heard and read, it seems like trying to get a loan modification will help delay foreclosure. I believe also that filing for bankruptcy halts the foreclosure process completely - that's what we were told about a shortsale that was just lingering.

I understand the financial decision of strategic default and don't really care about the moral aspects of it. You are abiding by the language of the contract. BUT, squatting in a house does put you in a lower class in my book. I understand that it may be the common thing to do nowadays, but if you are trying to take the somewhat moral high ground, get out of your condo, let the bank foreclose and pay rent like everyone else. Stealing bread makes more sense financially than paying for it, but that doesn't make it ok or the right thing to do.

In '07 I was wise enough to know that housing and especially CONDOS were way out of whack with reality. People that bought in '07 are the people I respect the least.
You should have bought that Condo, because you loved it,(for number one) and for number two, because you could AFFORD it.

Now you obviously make more money than I do, which for this crowd here anyway, might suggest you might even be smarter than me. Which puts your motive of buying in the first place in the GREED camp. You knew you couldn't afford you home when you bought it. You totally expected a continuation of artificially inflated house prices. You were expecting to flip that condo. Which based on the news that was circulating in late 06 through early 07, was a risky endeavor. 07 was a terrible time to jump Coattails. Which in my book suggests I'm not only smarter than you, but you made a horrible financial decision, that I have been paying for the last three years. The results of your decision has further depressed the value of homes, because now, based on your current strategy banks are tight fisted and wont loan to more suitable people on houses with more realistic prices.

Thanks to you and millions like you, my house buying experience now is ten times more stressful than needs to be.

I hope this helps.

And yet there are still those who claim an economy recovery PLUS a RE recovery are on the way in this country.

WITH MILLIONS OF PEOPLE LIKE THIS?!?! Let's face it, the majority of Americans is fat, stupid, lazy, unhealthy and massively indebted. Oh, and they have no morals.

If you were making cookies with that kind of a recipe you know how they'd turn out - DISGUSTING.

xlr8 .... Seek legal advice NOW from an experienced REAL ESTATE attorney. There are numerous legal and economic hazards that may surface down the road that you are probably not currently unaware of. If you are going to walk away, you need to at least know how exactly this is going to affect you in the future.

Thank you for all the relevant posts to the topic of this thread.

Tenouncetrout says

What would you say is an acceptable “Minimum Wage”?

If Minimum Wage is a valid concept, why not make it (FORCE employers to pay) $50 an hour?

Not to get too far off topic, but is it true that student loans are exempt from Chapter 13 proceedings? Just curious.

That is, take from the haves and give to the have nots …. by FORCE.

If you mean claw back a few pounds of flesh from the takers, then what's the fuss? A little cut and thrust with the pitchfork seems cosmically overdue.

But you see if everyone were to get $25k in cash, they'd use it as a downpayment for a $100k car that they were unable to repay in the first place. Irresponsible consumers will be irresponsible consumers. but I guess since they spent the $25k, it is some what driving the economy.

The cost of a college has gone up commensurate with available financing. Only the very wealthy can afford to pay cash. The schools push the loans because they support the tuition. The loans are presented to inexperienced young people as reasonable financial products.

But what about the professions that don't pay huge amounts but require degrees? Teachers need a minimum of 4 years, as do Social Workers... and we don't get paid a helluva lot. I know some people who are finally paying off their loans and they're nearly 50 years old.

"The economy is exactly the same way. Once the working classes attain enough debt to prevent new purchases, they are out of the game. Free the working classes from their debt, and they are once again consumers."

... sounds like Tyler Durden had it right at the end of Fight Club: "If you erase the debt record, everyone goes back to zero."

tatupu70 says

The banks loaned them the money–knowing that if house prices fell, then they might default. This is not the first time this has ever happened.

Really? When has this happened?

When we were drawing plans for TARP and the banks were having to estimate their losses based on bad loans (NINJA, ARM), where in there did they account for deadbeats with perfectly fine mortgages that would default out of choice?

klarek says

When we were drawing plans for TARP and the banks were having to estimate their losses based on bad loans (NINJA, ARM), where in there did they account for deadbeats with perfectly fine mortgages that would default out of choice?

Who's talking about TARP?

If banks didn't account for the possibility that people might default if home prices went down, then they deserve to lose money. That's why smart lenders demand a sizeable down payment--to make the purchaser have skin in the game.

elliemae says

Comments

Aren't there programs for teachers that can get rid of some or all of your loans? Teaching in inner cities maybe? Also do you need $200,000 in loans to get a degree. Not everyone needs to go to the most expensive schools.