Free bank living – the HELOC replacement

[jpinpb]

Just keeps getting better. Bank of America Introduces Earned Principal Forgiveness Among Enhancements to Its National Homeownership Retention Program.

So people were dumb enough to buy during the bubble homes they couldn’t afford. Then they live for free for over a year. Then the bank forgives/reduces debt.

Yep. Feeling like a chump.

[davelj]

[quote=jpinpb][quote=davelj]
It depends on how and over what time horizon you define “suffering.” I think most of these folks’ lives are much more difficult than it appears from the outside (as they should be). I don’t care now nonchalant someone may be, there’s a lot of stress related to the prospect of being forced out of your house and having your FICO go to 500, with all that entails.[/quote]

dave – do you personally know any of these people? I know of 2. [/quote]

Off the top of my head I know two as well, but in each case a spouse lost a job. In one case, they just picked up and moved to Europe. Their unit didn’t get sold until maybe 9 months after they had vacated. They put down 20% and everything – but the unit’s value fell by over 50% and with one person unemployed… what’s the point? In the second case, the husband lost his job, they moved out and rented it out but continued to pay the mortgage for a while, then stopped paying altogether. They got divorced and the unit was sold in a short sale recently – again, maybe 9 months after they stopped paying the mortgage. They also put down 20%, etc. But if you’re underwater big time and someone loses a job (and you’re divorced)… it’s time to walk. I don’t personally know of anyone that’s capable of paying the mortgage but choosing not to do so. But I might know one of these folks, but not know that they’re not paying. I just don’t know.

[davelj]

[quote=jpinpb][quote=davelj]
It depends on how and over what time horizon you define “suffering.” I think most of these folks’ lives are much more difficult than it appears from the outside (as they should be). I don’t care now nonchalant someone may be, there’s a lot of stress related to the prospect of being forced out of your house and having your FICO go to 500, with all that entails.[/quote]

dave – do you personally know any of these people? I know of 2. [/quote]

Off the top of my head I know two as well, but in each case a spouse lost a job. In one case, they just picked up and moved to Europe. Their unit didn’t get sold until maybe 9 months after they had vacated. They put down 20% and everything – but the unit’s value fell by over 50% and with one person unemployed… what’s the point? In the second case, the husband lost his job, they moved out and rented it out but continued to pay the mortgage for a while, then stopped paying altogether. They got divorced and the unit was sold in a short sale recently – again, maybe 9 months after they stopped paying the mortgage. They also put down 20%, etc. But if you’re underwater big time and someone loses a job (and you’re divorced)… it’s time to walk. I don’t personally know of anyone that’s capable of paying the mortgage but choosing not to do so. But I might know one of these folks, but not know that they’re not paying. I just don’t know.

[davelj]

[quote=jpinpb][quote=davelj]
It depends on how and over what time horizon you define “suffering.” I think most of these folks’ lives are much more difficult than it appears from the outside (as they should be). I don’t care now nonchalant someone may be, there’s a lot of stress related to the prospect of being forced out of your house and having your FICO go to 500, with all that entails.[/quote]

dave – do you personally know any of these people? I know of 2. [/quote]

Off the top of my head I know two as well, but in each case a spouse lost a job. In one case, they just picked up and moved to Europe. Their unit didn’t get sold until maybe 9 months after they had vacated. They put down 20% and everything – but the unit’s value fell by over 50% and with one person unemployed… what’s the point? In the second case, the husband lost his job, they moved out and rented it out but continued to pay the mortgage for a while, then stopped paying altogether. They got divorced and the unit was sold in a short sale recently – again, maybe 9 months after they stopped paying the mortgage. They also put down 20%, etc. But if you’re underwater big time and someone loses a job (and you’re divorced)… it’s time to walk. I don’t personally know of anyone that’s capable of paying the mortgage but choosing not to do so. But I might know one of these folks, but not know that they’re not paying. I just don’t know.

[davelj]

[quote=jpinpb][quote=davelj]
It depends on how and over what time horizon you define “suffering.” I think most of these folks’ lives are much more difficult than it appears from the outside (as they should be). I don’t care now nonchalant someone may be, there’s a lot of stress related to the prospect of being forced out of your house and having your FICO go to 500, with all that entails.[/quote]

dave – do you personally know any of these people? I know of 2. [/quote]

Off the top of my head I know two as well, but in each case a spouse lost a job. In one case, they just picked up and moved to Europe. Their unit didn’t get sold until maybe 9 months after they had vacated. They put down 20% and everything – but the unit’s value fell by over 50% and with one person unemployed… what’s the point? In the second case, the husband lost his job, they moved out and rented it out but continued to pay the mortgage for a while, then stopped paying altogether. They got divorced and the unit was sold in a short sale recently – again, maybe 9 months after they stopped paying the mortgage. They also put down 20%, etc. But if you’re underwater big time and someone loses a job (and you’re divorced)… it’s time to walk. I don’t personally know of anyone that’s capable of paying the mortgage but choosing not to do so. But I might know one of these folks, but not know that they’re not paying. I just don’t know.

[davelj]

[quote=jpinpb][quote=davelj]
It depends on how and over what time horizon you define “suffering.” I think most of these folks’ lives are much more difficult than it appears from the outside (as they should be). I don’t care now nonchalant someone may be, there’s a lot of stress related to the prospect of being forced out of your house and having your FICO go to 500, with all that entails.[/quote]

dave – do you personally know any of these people? I know of 2. [/quote]

Off the top of my head I know two as well, but in each case a spouse lost a job. In one case, they just picked up and moved to Europe. Their unit didn’t get sold until maybe 9 months after they had vacated. They put down 20% and everything – but the unit’s value fell by over 50% and with one person unemployed… what’s the point? In the second case, the husband lost his job, they moved out and rented it out but continued to pay the mortgage for a while, then stopped paying altogether. They got divorced and the unit was sold in a short sale recently – again, maybe 9 months after they stopped paying the mortgage. They also put down 20%, etc. But if you’re underwater big time and someone loses a job (and you’re divorced)… it’s time to walk. I don’t personally know of anyone that’s capable of paying the mortgage but choosing not to do so. But I might know one of these folks, but not know that they’re not paying. I just don’t know.

[jpinpb]

dave – I’m amazed to hear about anyone putting money down during this bubble. I feel for the two people you know. I don’t think that is the norm. It is definitely more stressful when you have skin in the game.

[jpinpb]

dave – I’m amazed to hear about anyone putting money down during this bubble. I feel for the two people you know. I don’t think that is the norm. It is definitely more stressful when you have skin in the game.

[jpinpb]

dave – I’m amazed to hear about anyone putting money down during this bubble. I feel for the two people you know. I don’t think that is the norm. It is definitely more stressful when you have skin in the game.

[jpinpb]

dave – I’m amazed to hear about anyone putting money down during this bubble. I feel for the two people you know. I don’t think that is the norm. It is definitely more stressful when you have skin in the game.

[jpinpb]

dave – I’m amazed to hear about anyone putting money down during this bubble. I feel for the two people you know. I don’t think that is the norm. It is definitely more stressful when you have skin in the game.

[scaredyclassic]

The people who put money down into a bubble are a lot more foolish than people who did zero down , right?

[scaredyclassic]

The people who put money down into a bubble are a lot more foolish than people who did zero down , right?

[scaredyclassic]

The people who put money down into a bubble are a lot more foolish than people who did zero down , right?

[scaredyclassic]

The people who put money down into a bubble are a lot more foolish than people who did zero down , right?

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