Arraya tell me the difference between one who “realizes” the mistake they made and one who knowlingly buys a home and never pays?
What is the real difference?
The result is the same for sure isn’t it?
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What is this “realization” that you are talking about. Again, your rationale for not paying for a home is what? I still am unclear on it even though we have gone in circles before, that you shouldn’t pay on your loan because the asset has depreciated? Was that the basis?
Can you show me a case for perpetual appreciation of anything on the planet?
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Acting within guidelines to me is not enough. It is perfectly legal to drink alcohol and even to act like an asshole when you are drunk. It is not illegal to vomit in the bar or to hit on every girl in the bar either. Well why did you do it? Cuz you were drunk right? You were acting within the guidelines when you were drinking. Nothing illegal there.
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I also do not believe this is victimless. I wish people would stop saying TARP money and start saying taxpayer money. It doesn’t matter to me where the taxpayer money goes, if it goes to the banks, if it goes to the freeloader, it is taxpayer money. It could be going to healthcare, it could be going somewhere else. It is a waste.
We do not have a society where everyone could live for free. It breaks down.
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RE people have plenty of blood on their hands and I sold lots of RE in the bubble. Fortunately I can say that everyone I work with heard the same words from me, I would not buy right now and I RENT BECAUSE I THINK THE MARKET IS OVERPRICED. In fact even today, people who have used me hear me say the same thing. I give them my honest opinion and they thank me for that. Some keep moving forward and some do not.
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Brian my example was one of theft but that was not the point. The point was that there is no such thing as a perfect system or a good system that cannot be taken advantage of. Not all laws make sense nor do guidelines.
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I think that one could easily argue that being a deadbeat and staying in the property is doing EXACTLY what the banks and govt want you to do. If you hand over the keys and leave the bank is responsible for the home, for maintaining it and there are local ordinances that will fine them in some areas. Furthermore the property does indeed get treated differently once the property does revert to the banks. Kicking the can down the road is exactly what everyone wants. The govt wants it and the banks want it. So this don’t pay, I won’t force you to leave game and Uncle Sam will keep funding me will continue.
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Doesn’t look to me like anyone is suffering under this scenario at all. Wall St looks okay to me. All the lenders and GSEs seem to be okay as well. So yes Arraya, your strategy is probably being counted on by the govt and Wall St to continue. It is fundamentally bad design and yes just think if everyone that was a deadbeat upped and left. Just mailed in their keys and left.
Now that would be quite a sight wouldn’t it? We would suddenly have a ton of empty houses, inventory up the wazoo, and I believe you would see a sharp CORRECTION in prices.
