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  • November 6, 2008 at 7:10 PM #14385
    Raybyrnes
    Participant

    A situation that I have been giving some thought to as to how people who have taken ridiculous amounts of risk could make out like bandits and NOT have to walk away.

    Say I bought 2 houses. 1 as a primary residence and 1 which I speculated on and am now renting out cash flow negative and a couple of hundred thousand underwater.

    A person in this situation could stop making payments and continue collecting rent on the rental property or both properties for that matter. Foreclosure will come but with the bailout in place the bank may have government backing to now modify this home loan. With the modification the person now turns a cashflow negative home into a cash flow positive home while at the same time pocketing rent while he was not making the payments.

    If the government comes back and says no dice becasue it is a rental they could now elect to swap homes with their renters technically making it their primary residence.

    Worst case scenario is they avoid forclosure share in the long term profits on the home with the bank and have a cash flow producing property.

    Am i missing something?

    November 6, 2008 at 7:46 PM #300592
    socrattt
    Participant

    Sounds just about right!! America is moving in the right direction. Welfare to those deserving!

    Never in my right mind did I think that I would pay the ultimate price for being responsible. I lost 70% of my 401K which was a decent amount. My company had a number of investments in different stocks as well which plummeted and I refrained from taking any risk in the housing market!! I have lost hundreds of thousands and those who had nothing are probably sitting in a better position. It’s quite obvious that playing by the rules doesn’t work anymore. America is in trouble and this Country’s future is very bleak.

    November 6, 2008 at 7:46 PM #300949
    socrattt
    Participant

    Sounds just about right!! America is moving in the right direction. Welfare to those deserving!

    Never in my right mind did I think that I would pay the ultimate price for being responsible. I lost 70% of my 401K which was a decent amount. My company had a number of investments in different stocks as well which plummeted and I refrained from taking any risk in the housing market!! I have lost hundreds of thousands and those who had nothing are probably sitting in a better position. It’s quite obvious that playing by the rules doesn’t work anymore. America is in trouble and this Country’s future is very bleak.

    November 6, 2008 at 7:46 PM #300960
    socrattt
    Participant

    Sounds just about right!! America is moving in the right direction. Welfare to those deserving!

    Never in my right mind did I think that I would pay the ultimate price for being responsible. I lost 70% of my 401K which was a decent amount. My company had a number of investments in different stocks as well which plummeted and I refrained from taking any risk in the housing market!! I have lost hundreds of thousands and those who had nothing are probably sitting in a better position. It’s quite obvious that playing by the rules doesn’t work anymore. America is in trouble and this Country’s future is very bleak.

    November 6, 2008 at 7:46 PM #300973
    socrattt
    Participant

    Sounds just about right!! America is moving in the right direction. Welfare to those deserving!

    Never in my right mind did I think that I would pay the ultimate price for being responsible. I lost 70% of my 401K which was a decent amount. My company had a number of investments in different stocks as well which plummeted and I refrained from taking any risk in the housing market!! I have lost hundreds of thousands and those who had nothing are probably sitting in a better position. It’s quite obvious that playing by the rules doesn’t work anymore. America is in trouble and this Country’s future is very bleak.

    November 6, 2008 at 7:46 PM #301027
    socrattt
    Participant

    Sounds just about right!! America is moving in the right direction. Welfare to those deserving!

    Never in my right mind did I think that I would pay the ultimate price for being responsible. I lost 70% of my 401K which was a decent amount. My company had a number of investments in different stocks as well which plummeted and I refrained from taking any risk in the housing market!! I have lost hundreds of thousands and those who had nothing are probably sitting in a better position. It’s quite obvious that playing by the rules doesn’t work anymore. America is in trouble and this Country’s future is very bleak.

    November 6, 2008 at 10:53 PM #301104
    nostradamus
    Participant

    That sucks socratt, I’d be pissed.

    This seems like a good thread to again post my questions:

    Has anyone heard of any bailouts or loan modifications for investment/rental homes? Does anyone have a reliable number of how many homes are rentals?

    November 6, 2008 at 10:53 PM #301172
    nostradamus
    Participant

    That sucks socratt, I’d be pissed.

    This seems like a good thread to again post my questions:

    Has anyone heard of any bailouts or loan modifications for investment/rental homes? Does anyone have a reliable number of how many homes are rentals?

    November 6, 2008 at 10:53 PM #301119
    nostradamus
    Participant

    That sucks socratt, I’d be pissed.

    This seems like a good thread to again post my questions:

    Has anyone heard of any bailouts or loan modifications for investment/rental homes? Does anyone have a reliable number of how many homes are rentals?

    November 6, 2008 at 10:53 PM #301094
    nostradamus
    Participant

    That sucks socratt, I’d be pissed.

    This seems like a good thread to again post my questions:

    Has anyone heard of any bailouts or loan modifications for investment/rental homes? Does anyone have a reliable number of how many homes are rentals?

    November 6, 2008 at 10:53 PM #300737
    nostradamus
    Participant

    That sucks socratt, I’d be pissed.

    This seems like a good thread to again post my questions:

    Has anyone heard of any bailouts or loan modifications for investment/rental homes? Does anyone have a reliable number of how many homes are rentals?

    November 7, 2008 at 7:37 AM #300841
    sdduuuude
    Participant

    Yes – you are missing something.

    It was the bank that took on the massive risk, not the home buyer.

    November 7, 2008 at 7:37 AM #301199
    sdduuuude
    Participant

    Yes – you are missing something.

    It was the bank that took on the massive risk, not the home buyer.

    November 7, 2008 at 7:37 AM #301208
    sdduuuude
    Participant

    Yes – you are missing something.

    It was the bank that took on the massive risk, not the home buyer.

    November 7, 2008 at 7:37 AM #301225
    sdduuuude
    Participant

    Yes – you are missing something.

    It was the bank that took on the massive risk, not the home buyer.

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