New York Times: Walk Away From Your Mortgage!

[AngelinaCatHub]

Albacore, my friend. That is a hell of a sad story. It will not get better. This Country is near an insurrection in my opinion. If the new senator to be in Mass. does not get put into place there will be a cry very laudly to this pres. Will HE hear it? I doubt his ego will open his (very large) ears. 'Hub

[AngelinaCatHub]

Growing up we had hero's, people we wanted to be like. Superman, Superwoman, Rifleman, Lone Ranger.. etc. We learned strong good morales from these people and we have lived our lives by those principals. Americans in general do not like someone "getting away with it". We like honesty, and respect, good clean living, good jobs, good education, good opportunities for our children, and we love our Red White and Blue strong hard working fun loving nation... if we have gone down a less than moral path I will suggest it was set "by example"... That example has been in Washington for 30 years, in business for decades as they could care less about Red White and Blue and their country, and more about "theirselves" It is the "trickle effect" that was so wanted by Bush, the we could care less about if business or government survive or fail, in fact we want the other party to fail so we look better and that has trickled down. Of course we have also enjoyed the Clinton effect of trickle up, where our money trickles up to business, government and in building other nations .. building their factories and using cheaper labor on our wealth... So, there you have it.. it is the economy ... lol

Clap, Clap, Clap.

I could not agree more. 'Hub

[albacore44]

Albacore, my friend. That is a hell of a sad story. It will not get better. This Country is near an insurrection in my opinion. If the new senator to be in Mass. does not get put into place there will be a cry very laudly to this pres. Will HE hear it? I doubt his ego will open his (very large) ears. 'Hub

i agree with you on that. i really don't think they care. They think they know what best for the American people, and they think they have the support thanks to ACORN. my wife worked for SBD county voters registration, before/during the last general election. If you recall, the SBD ACORN office was one of the ones that couple did the sting operation on. well my wifes job was to verify voter registrations. the amount of fraudulant registrations she caught from ilegal aliens, etc. was unbelievable. i wonder how many they missed ?? we are truely very close to a melt down in this country.

[Lynnin]

I agree fully I am just stating the article says that the people are not resposible and showing there kids how to get away and not pay..I dont agree with him I say yes this may show our kids... but with everything going on lay offs economy real estate there are reasons people forclose its not becuase they want to and just decided one day not to pay its because they cant pay...loan modifications are crap... the government helped the banks and all for there bad judgement what happen to the people!!

[PoorGrammyinBK7]

Thanks for answering. The state is Florida.

I think they would pay a similar amount in rent really - maybe they could find something for as much as $100 less a month, but thats about it. So maybe they should just keep on - paying?

I just fear for them that they are so upside down already and it seems likely to get even worse. And now one of them may have a job offer in a nearby city - which either means a very long commute or try to sell the house (short - probably not even possible) and move or quit paying, live there as long as they can and then walk when it gets foreclosed. At least there's no HELOC - they had one, but rolled it into the refi. Its just sad because they have worked very hard to pay their bills on time. They have a little child too.

Grammy,

If they are eventually going to lose this place anyway, and it sounds likely, I would suggest they move on as soon as they can and save money that would otherwise be spent on the house, maintenances, HOA, taxes, etc. Now, I would qualify that by saying that they should also be able to rent for substantially cheaper, the same or equivalent home. If they cannot, then they have larger problems to address as well.

Repercussions are ruled by state law, mostly. In a recourse state, the lender could sue them for a deficiency. This is almost unheard of, but who knows what the future holds. Is there a 2nd loan, HELOC, or any thing like that? If so, that could be pursued for up to 20 years or settled. If they could not settle, the lender for that 2nd loan could sell it to a collector who would hound them.

If any of these are an issue, BK is a good deterrent for collectors.

It is more detailed, but this is a general roundup of the bigger issues. All in all, they need to do what is best for them, and that is definitely not feeding the credit cards to try to stay in a home they cannot afford.

Best,

-dmc

[limage]

Colbert talked about this last night and it was hilarious! He said the author of this article also wrote the book "Send Visa A Flaming Bag of SH**!"

[Submerged]

Thanks for answering. The state is Florida.

I think they would pay a similar amount in rent really - maybe they could find something for as much as $100 less a month, but thats about it. So maybe they should just keep on - paying?

I just fear for them that they are so upside down already and it seems likely to get even worse. And now one of them may have a job offer in a nearby city - which either means a very long commute or try to sell the house (short - probably not even possible) and move or quit paying, live there as long as they can and then walk when it gets foreclosed. At least there's no HELOC - they had one, but rolled it into the refi. Its just sad because they have worked very hard to pay their bills on time. They have a little child too.

In Florida, the lender can sue them for the deficiency (amount house mortgaged for minus amount it sold for after foreclosure). Although lenders have not been aggressive so far they will probably begin asserting their rights to the deficiency. If the family can file Chap 7, that is their best best to avoid the deficiency and walk.
Since it sounds like their mortgage costs are equivalent to rent , they are probably wise to stay put for now unless they must move, and hope they can qualify for some type of relief in the future.

[Tom_Mi]

Too bad we don't ALL have the guts to just walk and file ch7/13.
Values would reset in 24months and the banks would eat the difference.

and if everyone has bad credit, then they also have excellent credit...So the banks would have to lend to us again anyhow.


"A bug's life" should be required in schools.

[Faust]

Too bad we don't ALL have the guts to just walk and file ch7/13.
Values would reset in 24months and the banks would eat the difference.

and if everyone has bad credit, then they also have excellent credit...So the banks would have to lend to us again anyhow.


"A bug's life" should be required in schools.

I totally agree with this!