everyone here told me not to buy. i did. shame on me. but I could care less at this point about being “the good guy” and just paying on my loan. in my opnion, that would be the dumb schmuck way to do it.
in this game, being nice nd upstanding gets you nothing. if the tables were turned, and I fell on hard times, and my house was worth twice what I paid, the banks would froth at the mouth to kcik me out, sell it, and pocket the money. now that it’s the reverse, why should I be “mr nice guy” and just take it up the a$$.
housin prices got run up b/c of these frickin banks, and b/c of morons who bought what they coudlnt’ buy. yeah, I bought it. but why should I pay the high inflated price, and when it all collapses, just hold hte bag and take it while everyone else gets a freebie.
in the end, I can just milk it for a year, then walk away. i have some rich relatives who could buy me a house for cash and carry paper. i could just rent for a while and repair my credit. i’m at the point where I honestly don’t care.
if I stay in myh ouse, lose my house, rent a house – given everything going on with the economy, the housing market, I don’t care anymore. i may have gotten caught up in that whole” i’ve got to own a house” thing, and now i’ve snapped out of it and relaize it’s just a box i live in, and as far as I’m concerned, i’m just looking to pay as little as possible for the nicest place to live.
if staying in my house ends up making sense, I’ll do it. but when you have a mortgage amount of approx $350k and your house is worth $200k, staying in the house might actually be the STUPID thing to do. i have a 100% non recourse loan. I can pack up my stuff, walk away, and the bank takes it up the a$$ not me. my credit gets screwed, but i really dont’ care. hal fthe country will have scrwed up credit by the time this is said and done with, maybe more than 50%…
i’m trying to view this from a rational standpoint. i’m envisioning that there is going to come a point where my house price will go so low, that if I were to sit down with a financial planner, economic advisor – and explained my situation they woudl say “dump your house”. that is the SMART thing to do. let the bank eat the loss. rent something else.
it realistically may be that I would be AHEAD financially if I were to let my credit get hit, spend less oney on a rental, and pocket money, repair my creidt, and then rebuy later when prices are more rational. VS suck it up an stay/pay and wait 15 years to see any equity….
i made the bed, I’m lying in it. I’m not blaming others. I’m not a “victim” – but I do feel a sense of frustration that as a hard working productive member of society who got caught up i the “buy the American dream” and boght a home that I COULD afford..I have a big payment but I have a big salary (relative to the general public) I”m sure many of you are far better off than me..I don’t mean it in an arrogant way..just that I earn good money and I bought a hosue with a 30 yr fixed that I CAN afford. but the prices were blown out of proportio nby all the morons who bought what they coudl not afford.
now prices are collapsing. and b/c the dumb banks let me in wiht 100% financing, I have the option to just walk and lose no money. just my credit..so at some point, you ahve to seriously consider that option.
if the bank will renegotiate with me and make it worthwhile to stay, great. if not, they can frickin have it.
now I don’t know about temecula guys statements that banks aren’t really giving any one anything. if they say they will convert my 30 yr fixed P&I loan into an interst only..that gets me nothign excpet saving montly monty and effectivel make me like a long term renter…
now if they would actually reduce my principal, just write off part of what I owe, and/or lower my int rate, that would be great. my rates now are only so-so. i have a first at like 6.5 and a second at over 7 i think…crappy rates. i coud probably push hard for them to drop those to very aggressive rates..
but i’m not going to makei t recourse debt. if they want to play that game, i can just tell them to come get the house. in the end, they lose harder than I do. which is why i think an effective negotiator has them over a barrel and can dictate terms.
it’s not about being fair or upstanding anymore. it’s about taking advantage of the situation to do better for yourself – it’s not illegal – it’s business.
