You continue to get punished for financial prosperity, hard work & putting your nose to the grindstone… you get to carry the tax burden for the whole county, you don’t get to contribute to a Roth IRA, if you pay your mortgage on time you don’t get any of the goodies the deadbeats get like loan mods, principle reductions, free rent squatting in your house for 3+ years, you don’t get to take the loss on rentals over $150k in AGI, etc…. and it goes on and on an on.
I understand your frustration but you’re failing to take into account one thing, ctr. That is that these “deadbeats” can’t even currently use their credit reports for toilet paper. They’re neither strong nor absorbent enough. But YOU CAN!
I have no doubt that the “fb squat-mod and squat-shortsale party” will be over fairly soon. I haven’t seen actual proof yet but I really believe those who have actually agreed to timely pay on modifications and are still currently doing so will have to pay the piper down the road in the form of “equity sharing” with their 1st TD holder upon sale. The reason for this opinion is that cramdowns have not yet been approved for fannie/freddie-backed mortgages (which were the vast majority of 1st TD purchase-money mtgs made during the boom).
And many of those borrowers whose mtgs were “modified” still have 2nd TD’s which will come due as a balloon payment (if they haven’t already). As soon as the market picks up a little more, these 2nd TD holders will begin to foreclose … ESP if they learn that enough principle was forgiven on a 1st TD and note on a property they are holding a 2nd TD on to make foreclosure worth their while.
I predict most of the “successful loan-mod borrowers” will just walk away in the coming years, especially if their last kid just graduated from HS (usually the sole reason why they got in over their heads in the first place).
