i believe this. while there could be a catch, such as making the debt recourse, or some other catch – prepayment penalties? whatever it is – the banks are screwed.
i bought my temecula house for $350k thinking it was such a smoking deal. 1900 sq ft. it is a very nice house and I like it, but the house next to me just went into foreclosure/bank owned and the bank is asking $299k and THAT house is 2500sq ft. so more space, far less money. who knows what it will ultimately sell for.. 250-275k?
making my house worth what?? $200k?
why in the hell woudl the bank want to foreclose on me when they KNOW that they have a $350k loan and they can only get maybe $200k PLUS COSTS to foreclose….
if lowering the payments by $1000/month or whatever keeps people in the home – they will do it b/c the alternative is even worse.
i’m one of those people who CAN afford to stay, does pay on time, am responsible, bought a house within my means… and it pisses me off to see idiots who bought a hosue they had no busines buying, aon an ARM, now cry foul and get their loan % rate, principle all whacked to nothing… b/c they were stupid.
that is such BS. so you know what, why not do it too? i am really thinking of not apying my mortgage. what will happen. the bank is’nt going to foreclose on me. they would lose over $150k. they will threaten me, try to scaer me into paying, but ultimately, if i say “f**K you” and I become a jerk who manipulates the system – guess what, they will renegotiate with me, reduce my int rate, reduce my balnce, they will do something to keep me in the house.
it’s a system that drives good responsible people to do things they normally wouldn’t do. but if the “system” is goign to reward losers – then why be a good guy and get royally screwed?
