Free bank living – the HELOC replacement

[CA renter]

[quote=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.[/quote]

Yes, indeed…feeling very much like a chump.

Just yesterday, I was counseling a friend about her upcoming foreclosure and explained that she was really the winner in the whole deal. They’ve lived in their “owned” home about as long as we’ve lived in our rented home, and have paid about the same total amount for housing costs over that period because they didn’t pay for about 9 months, and had modified payments for about 9 more months. Technically, their monthly payments were much higher than ours, but with the free rent and modified payments, the amount is close to what we’ve paid over about 6 years. They also haven’t paid their prop taxes, and the lender has been paying for their homeowner’s insurance.

They stopped paying their credit card payments and medical bills, too. The husband lost his job, but that was many years ago. They’ve been using the home ATM as a way to fund their lifestyle ever since, and were able to pull out a few hundred grand that they apparently won’t have to pay back. We renters certainly didn’t receive a few hundred thousand dollars over the years we’ve lived in our rental homes — that we don’t have to pay back.

Don’t get me wrong, they’re stressed; but they’d be stressed no matter what. If they were renting, they would be in a much worse place because they wouldn’t have been able to access all that credit which funded their lifestyles for the past few years…and they wouldn’t have been able to live for free for 9 months. If renters stop paying their rent, there’s no Turko Files rushing to our rescue when we’re being evicted. No journalists write about our sad tales. No, we’re just evicted.

They will probably file BK, but I have a feeling credit standards will be dramatically loosened in the future; without all these “deadbeat” borrowers, the economy will come to a screeching halt. “They” won’t let that happen, so I expect foreclosures, shortsales, and bankruptcies to be glossed over at some point in time.

Sorry davelj, there’s no way around it…those of us who tried to do the responsible thing are most definitely chumps, and they rub it in our faces every day — like with this announcement about principal reductions.

[scaredyclassic]

The key thing is not to be stressed whether your a bp exec, a fb, a banker on top of a pile of garbage debt . America needs people to go for broke and despises the responsible. The sober must pay while the drunk feast

[scaredyclassic]

The key thing is not to be stressed whether your a bp exec, a fb, a banker on top of a pile of garbage debt . America needs people to go for broke and despises the responsible. The sober must pay while the drunk feast

[scaredyclassic]

The key thing is not to be stressed whether your a bp exec, a fb, a banker on top of a pile of garbage debt . America needs people to go for broke and despises the responsible. The sober must pay while the drunk feast

[scaredyclassic]

The key thing is not to be stressed whether your a bp exec, a fb, a banker on top of a pile of garbage debt . America needs people to go for broke and despises the responsible. The sober must pay while the drunk feast

[scaredyclassic]

The key thing is not to be stressed whether your a bp exec, a fb, a banker on top of a pile of garbage debt . America needs people to go for broke and despises the responsible. The sober must pay while the drunk feast

[davelj]

[quote=CA renter]

Sorry davelj, there’s no way around it…those of us who tried to do the responsible thing are most definitely chumps, and they rub it in our faces every day — like with this announcement about principal reductions.[/quote]

If you feel like a chump, then so be it. I can’t change the way you feel. I, however, do not. I take the long view – and I feel sorry for these financial dipshits. Now, I’d rather not be bailing them out – let’s be clear – but in the whole scheme of things… life goes on. Living well is the best revenge if you’re feeling like a chump. I guess EVERYONE’s been victimized in this crisis: borrowers (by irresponsible lenders), lenders (by irresponsible borrowers), renters (by irresponsible lenders and borrowers), etc. etc. How convenient for everyone… everyone gets to claim victim status (well, except for Goldman Sachs… and they’re trying!).

[davelj]

[quote=CA renter]

Sorry davelj, there’s no way around it…those of us who tried to do the responsible thing are most definitely chumps, and they rub it in our faces every day — like with this announcement about principal reductions.[/quote]

If you feel like a chump, then so be it. I can’t change the way you feel. I, however, do not. I take the long view – and I feel sorry for these financial dipshits. Now, I’d rather not be bailing them out – let’s be clear – but in the whole scheme of things… life goes on. Living well is the best revenge if you’re feeling like a chump. I guess EVERYONE’s been victimized in this crisis: borrowers (by irresponsible lenders), lenders (by irresponsible borrowers), renters (by irresponsible lenders and borrowers), etc. etc. How convenient for everyone… everyone gets to claim victim status (well, except for Goldman Sachs… and they’re trying!).

[davelj]

[quote=CA renter]

Sorry davelj, there’s no way around it…those of us who tried to do the responsible thing are most definitely chumps, and they rub it in our faces every day — like with this announcement about principal reductions.[/quote]

If you feel like a chump, then so be it. I can’t change the way you feel. I, however, do not. I take the long view – and I feel sorry for these financial dipshits. Now, I’d rather not be bailing them out – let’s be clear – but in the whole scheme of things… life goes on. Living well is the best revenge if you’re feeling like a chump. I guess EVERYONE’s been victimized in this crisis: borrowers (by irresponsible lenders), lenders (by irresponsible borrowers), renters (by irresponsible lenders and borrowers), etc. etc. How convenient for everyone… everyone gets to claim victim status (well, except for Goldman Sachs… and they’re trying!).

[davelj]

[quote=CA renter]

Sorry davelj, there’s no way around it…those of us who tried to do the responsible thing are most definitely chumps, and they rub it in our faces every day — like with this announcement about principal reductions.[/quote]

If you feel like a chump, then so be it. I can’t change the way you feel. I, however, do not. I take the long view – and I feel sorry for these financial dipshits. Now, I’d rather not be bailing them out – let’s be clear – but in the whole scheme of things… life goes on. Living well is the best revenge if you’re feeling like a chump. I guess EVERYONE’s been victimized in this crisis: borrowers (by irresponsible lenders), lenders (by irresponsible borrowers), renters (by irresponsible lenders and borrowers), etc. etc. How convenient for everyone… everyone gets to claim victim status (well, except for Goldman Sachs… and they’re trying!).

[davelj]

[quote=CA renter]

Sorry davelj, there’s no way around it…those of us who tried to do the responsible thing are most definitely chumps, and they rub it in our faces every day — like with this announcement about principal reductions.[/quote]

If you feel like a chump, then so be it. I can’t change the way you feel. I, however, do not. I take the long view – and I feel sorry for these financial dipshits. Now, I’d rather not be bailing them out – let’s be clear – but in the whole scheme of things… life goes on. Living well is the best revenge if you’re feeling like a chump. I guess EVERYONE’s been victimized in this crisis: borrowers (by irresponsible lenders), lenders (by irresponsible borrowers), renters (by irresponsible lenders and borrowers), etc. etc. How convenient for everyone… everyone gets to claim victim status (well, except for Goldman Sachs… and they’re trying!).

[NotCranky]

What’s doing the holding back the morality or the moralizing and obsession with deadbeats and deadbeatism? This chump stuff sets off the bs detector big time, partly because I sometimes wallow in it. Amongst the ordinary people like us and the fb’s, the ones that are living well, with the most choices and fewest worries, are responsible.

There are a few fb’s that got bailed out by parents who get to go on living large, support their kids to college, retire well.Maybe some moved up with MEW on multiple properties that they won’t pay back, but most FB’s don’t have all those things most of us want in life, relative to people who lived within their means, worked for it and paid their own way.For the most part, at best, starting in this moment, they are getting a house at todays prices with no equity. I don’t see how the responsible people I know are chumps compared to that?

[NotCranky]

What’s doing the holding back the morality or the moralizing and obsession with deadbeats and deadbeatism? This chump stuff sets off the bs detector big time, partly because I sometimes wallow in it. Amongst the ordinary people like us and the fb’s, the ones that are living well, with the most choices and fewest worries, are responsible.

There are a few fb’s that got bailed out by parents who get to go on living large, support their kids to college, retire well.Maybe some moved up with MEW on multiple properties that they won’t pay back, but most FB’s don’t have all those things most of us want in life, relative to people who lived within their means, worked for it and paid their own way.For the most part, at best, starting in this moment, they are getting a house at todays prices with no equity. I don’t see how the responsible people I know are chumps compared to that?

[NotCranky]

What’s doing the holding back the morality or the moralizing and obsession with deadbeats and deadbeatism? This chump stuff sets off the bs detector big time, partly because I sometimes wallow in it. Amongst the ordinary people like us and the fb’s, the ones that are living well, with the most choices and fewest worries, are responsible.

There are a few fb’s that got bailed out by parents who get to go on living large, support their kids to college, retire well.Maybe some moved up with MEW on multiple properties that they won’t pay back, but most FB’s don’t have all those things most of us want in life, relative to people who lived within their means, worked for it and paid their own way.For the most part, at best, starting in this moment, they are getting a house at todays prices with no equity. I don’t see how the responsible people I know are chumps compared to that?

[NotCranky]

What’s doing the holding back the morality or the moralizing and obsession with deadbeats and deadbeatism? This chump stuff sets off the bs detector big time, partly because I sometimes wallow in it. Amongst the ordinary people like us and the fb’s, the ones that are living well, with the most choices and fewest worries, are responsible.

There are a few fb’s that got bailed out by parents who get to go on living large, support their kids to college, retire well.Maybe some moved up with MEW on multiple properties that they won’t pay back, but most FB’s don’t have all those things most of us want in life, relative to people who lived within their means, worked for it and paid their own way.For the most part, at best, starting in this moment, they are getting a house at todays prices with no equity. I don’t see how the responsible people I know are chumps compared to that?

[Author]

Posts