10 Million Homeowners Have Incentives to Walk

[coxapple]

Guys,

I really would like to know why the solution is not partly renting en masses. If the banks and MBS service agents, or the government in their stead (after buying up the mortgages) rent out the foreclosed properties (first offer to the foreclosee and then anyone), the downward spiral could be halted before it seriously undershoots and hence prevent more damage to the financial economy/fiscal position (the latter two being the same thing these days!).

Banks and MBS agents don’t rent in practice so this is something the government can do. In most areas , the rent will cover the cost of carry for the mortgage assets (written down) that the tax payer has acquired because rental yield in the higher foreclosure areas are good (some extreme exurbs exempted perhaps as renters may be scarce).

Thanks

Graham

[kewp]

Btw, temeculaguy is right (at least for the moment).

Everyone I know that has gone through a short sale, foreclosure or bankruptcy regrets that they bought. Many are jealous of my happy renting, cash and good credit. Nobody feels like they were “bailed out” and all will face severe hardship down the road. Made all the worse, of course, by the illusion of wealth they once possessed.

The only ones that are being bailed out are few wall street types with too many toxic assets on their books. More and more it looks that this has to be done to free up the credit markets.

[kewp]

Btw, temeculaguy is right (at least for the moment).

Everyone I know that has gone through a short sale, foreclosure or bankruptcy regrets that they bought. Many are jealous of my happy renting, cash and good credit. Nobody feels like they were “bailed out” and all will face severe hardship down the road. Made all the worse, of course, by the illusion of wealth they once possessed.

The only ones that are being bailed out are few wall street types with too many toxic assets on their books. More and more it looks that this has to be done to free up the credit markets.

[kewp]

Btw, temeculaguy is right (at least for the moment).

Everyone I know that has gone through a short sale, foreclosure or bankruptcy regrets that they bought. Many are jealous of my happy renting, cash and good credit. Nobody feels like they were “bailed out” and all will face severe hardship down the road. Made all the worse, of course, by the illusion of wealth they once possessed.

The only ones that are being bailed out are few wall street types with too many toxic assets on their books. More and more it looks that this has to be done to free up the credit markets.

[kewp]

Btw, temeculaguy is right (at least for the moment).

Everyone I know that has gone through a short sale, foreclosure or bankruptcy regrets that they bought. Many are jealous of my happy renting, cash and good credit. Nobody feels like they were “bailed out” and all will face severe hardship down the road. Made all the worse, of course, by the illusion of wealth they once possessed.

The only ones that are being bailed out are few wall street types with too many toxic assets on their books. More and more it looks that this has to be done to free up the credit markets.

[kewp]

Btw, temeculaguy is right (at least for the moment).

Everyone I know that has gone through a short sale, foreclosure or bankruptcy regrets that they bought. Many are jealous of my happy renting, cash and good credit. Nobody feels like they were “bailed out” and all will face severe hardship down the road. Made all the worse, of course, by the illusion of wealth they once possessed.

The only ones that are being bailed out are few wall street types with too many toxic assets on their books. More and more it looks that this has to be done to free up the credit markets.

[peterb]

Here’s the homeowner “Bailout” for those of you upside down in your property. Stop paying the mortgage and save the money for a new place. I cant be the only one who thought of this. Banks are so hesitant to take action that you could stay in your house for over a year, rent free. Maybe longer. But you’ll need to protect your credit rating somehow. Maybe the wife gets arms length from the house and keeps her FICO in good shape? Not sure about this part.
Anyway, you’ll get at least 2 weeks notice before a physical eviction and a month or so on the written. Plenty of time to “bailout” before the sherrif arrives.

Hey, if you have a HELOC, drain it out to a bank account and have that much more to buy with.

[peterb]

Here’s the homeowner “Bailout” for those of you upside down in your property. Stop paying the mortgage and save the money for a new place. I cant be the only one who thought of this. Banks are so hesitant to take action that you could stay in your house for over a year, rent free. Maybe longer. But you’ll need to protect your credit rating somehow. Maybe the wife gets arms length from the house and keeps her FICO in good shape? Not sure about this part.
Anyway, you’ll get at least 2 weeks notice before a physical eviction and a month or so on the written. Plenty of time to “bailout” before the sherrif arrives.

Hey, if you have a HELOC, drain it out to a bank account and have that much more to buy with.

[peterb]

Here’s the homeowner “Bailout” for those of you upside down in your property. Stop paying the mortgage and save the money for a new place. I cant be the only one who thought of this. Banks are so hesitant to take action that you could stay in your house for over a year, rent free. Maybe longer. But you’ll need to protect your credit rating somehow. Maybe the wife gets arms length from the house and keeps her FICO in good shape? Not sure about this part.
Anyway, you’ll get at least 2 weeks notice before a physical eviction and a month or so on the written. Plenty of time to “bailout” before the sherrif arrives.

Hey, if you have a HELOC, drain it out to a bank account and have that much more to buy with.

[peterb]

Here’s the homeowner “Bailout” for those of you upside down in your property. Stop paying the mortgage and save the money for a new place. I cant be the only one who thought of this. Banks are so hesitant to take action that you could stay in your house for over a year, rent free. Maybe longer. But you’ll need to protect your credit rating somehow. Maybe the wife gets arms length from the house and keeps her FICO in good shape? Not sure about this part.
Anyway, you’ll get at least 2 weeks notice before a physical eviction and a month or so on the written. Plenty of time to “bailout” before the sherrif arrives.

Hey, if you have a HELOC, drain it out to a bank account and have that much more to buy with.

[peterb]

Here’s the homeowner “Bailout” for those of you upside down in your property. Stop paying the mortgage and save the money for a new place. I cant be the only one who thought of this. Banks are so hesitant to take action that you could stay in your house for over a year, rent free. Maybe longer. But you’ll need to protect your credit rating somehow. Maybe the wife gets arms length from the house and keeps her FICO in good shape? Not sure about this part.
Anyway, you’ll get at least 2 weeks notice before a physical eviction and a month or so on the written. Plenty of time to “bailout” before the sherrif arrives.

Hey, if you have a HELOC, drain it out to a bank account and have that much more to buy with.

[temeculaguy]

peter, hopefully your plan was tounge and cheek, that is not a path that a piggy would take. We can all do that, we can also all rob a bank, we can swindle old ladies, but we don’t. We are proud economic geeks who enjoy playing and winning the game in a way that we can look at ourselves in the mirror or our children in the eyes and be proud. We consoled each other while we rented or stayed in small homes, refusing the toxic mortgages, knowing affordability would return and in the end, our pride in our home will be greater than the neg am zero down borrower, because anything good requires sacrifice to enjoy.

O.K. I’m off my soapbox

I did hear today from a lender that fannie/freddie/fha and others are onto the scam of buying a new home at todays prices under the premise that you rent out the current upside down house and then after moving, letting the upside down house go, with a low and protected interest rate on the new house and no need for a good credt score anymore. Supposedly they are denying the loans en masse when it involves renting out the current home unless there is equity in it.

Also, there is no way to get the wife “at arms length” even if the house and loan is only in one spouse’s name, community property and community credit. You could divorce her on paper then go into default as an individual but my guess is that few women will agree to a paper divorce to preserve credit because they will suspect you are just looking for an easy divorce with no court battle or alimony. Since alimony can never be renegotiated after the ink is dry (child support can but not alimony or asset division) I imagine there will be a few news stories of one spouse duping the other and you won’t see this happen very much after that. Come to think of it, it is kinda ingenious.

[temeculaguy]

peter, hopefully your plan was tounge and cheek, that is not a path that a piggy would take. We can all do that, we can also all rob a bank, we can swindle old ladies, but we don’t. We are proud economic geeks who enjoy playing and winning the game in a way that we can look at ourselves in the mirror or our children in the eyes and be proud. We consoled each other while we rented or stayed in small homes, refusing the toxic mortgages, knowing affordability would return and in the end, our pride in our home will be greater than the neg am zero down borrower, because anything good requires sacrifice to enjoy.

O.K. I’m off my soapbox

I did hear today from a lender that fannie/freddie/fha and others are onto the scam of buying a new home at todays prices under the premise that you rent out the current upside down house and then after moving, letting the upside down house go, with a low and protected interest rate on the new house and no need for a good credt score anymore. Supposedly they are denying the loans en masse when it involves renting out the current home unless there is equity in it.

Also, there is no way to get the wife “at arms length” even if the house and loan is only in one spouse’s name, community property and community credit. You could divorce her on paper then go into default as an individual but my guess is that few women will agree to a paper divorce to preserve credit because they will suspect you are just looking for an easy divorce with no court battle or alimony. Since alimony can never be renegotiated after the ink is dry (child support can but not alimony or asset division) I imagine there will be a few news stories of one spouse duping the other and you won’t see this happen very much after that. Come to think of it, it is kinda ingenious.

[temeculaguy]

peter, hopefully your plan was tounge and cheek, that is not a path that a piggy would take. We can all do that, we can also all rob a bank, we can swindle old ladies, but we don’t. We are proud economic geeks who enjoy playing and winning the game in a way that we can look at ourselves in the mirror or our children in the eyes and be proud. We consoled each other while we rented or stayed in small homes, refusing the toxic mortgages, knowing affordability would return and in the end, our pride in our home will be greater than the neg am zero down borrower, because anything good requires sacrifice to enjoy.

O.K. I’m off my soapbox

I did hear today from a lender that fannie/freddie/fha and others are onto the scam of buying a new home at todays prices under the premise that you rent out the current upside down house and then after moving, letting the upside down house go, with a low and protected interest rate on the new house and no need for a good credt score anymore. Supposedly they are denying the loans en masse when it involves renting out the current home unless there is equity in it.

Also, there is no way to get the wife “at arms length” even if the house and loan is only in one spouse’s name, community property and community credit. You could divorce her on paper then go into default as an individual but my guess is that few women will agree to a paper divorce to preserve credit because they will suspect you are just looking for an easy divorce with no court battle or alimony. Since alimony can never be renegotiated after the ink is dry (child support can but not alimony or asset division) I imagine there will be a few news stories of one spouse duping the other and you won’t see this happen very much after that. Come to think of it, it is kinda ingenious.

[temeculaguy]

peter, hopefully your plan was tounge and cheek, that is not a path that a piggy would take. We can all do that, we can also all rob a bank, we can swindle old ladies, but we don’t. We are proud economic geeks who enjoy playing and winning the game in a way that we can look at ourselves in the mirror or our children in the eyes and be proud. We consoled each other while we rented or stayed in small homes, refusing the toxic mortgages, knowing affordability would return and in the end, our pride in our home will be greater than the neg am zero down borrower, because anything good requires sacrifice to enjoy.

O.K. I’m off my soapbox

I did hear today from a lender that fannie/freddie/fha and others are onto the scam of buying a new home at todays prices under the premise that you rent out the current upside down house and then after moving, letting the upside down house go, with a low and protected interest rate on the new house and no need for a good credt score anymore. Supposedly they are denying the loans en masse when it involves renting out the current home unless there is equity in it.

Also, there is no way to get the wife “at arms length” even if the house and loan is only in one spouse’s name, community property and community credit. You could divorce her on paper then go into default as an individual but my guess is that few women will agree to a paper divorce to preserve credit because they will suspect you are just looking for an easy divorce with no court battle or alimony. Since alimony can never be renegotiated after the ink is dry (child support can but not alimony or asset division) I imagine there will be a few news stories of one spouse duping the other and you won’t see this happen very much after that. Come to think of it, it is kinda ingenious.

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