Homeowners who ‘strategically default’ on loans a growing problem

[briansd1]

[quote=peterb]This will gain popularity as more people strategically default. These things have a kind of momentum to them. The rationalization will start and then the actual action will grow and become socially acceptable. Then those that dont do it will be labeled as “suckers”. And those that have defaulted will have more disposable income and the ability to invest their money in assets that are appreciating.[/quote]

I agree peterb.

But if one is to strategically default, one ought to do it sooner rather than later.

The WSJ reported that there are now 200,000 houses defaulted more than 1 year where then lenders have not even started the foreclosure process.

[propertysearchaddiction]

I agree with the herd mentality!
I think most people see that even if they use up their meager savings and retirement, it still only buys them a year or two. Then they are in the same position just poorer. People around me are walking away all the time. Some call it strategic but in most instances I see, they payment changes from $2500 to $4500, $5500 etc and they simply don’t have the money because they have lived beyond their means for years. Even if they sell the Hummer, at some point they don’t have enough money to buy food.

[propertysearchaddiction]

I agree with the herd mentality!
I think most people see that even if they use up their meager savings and retirement, it still only buys them a year or two. Then they are in the same position just poorer. People around me are walking away all the time. Some call it strategic but in most instances I see, they payment changes from $2500 to $4500, $5500 etc and they simply don’t have the money because they have lived beyond their means for years. Even if they sell the Hummer, at some point they don’t have enough money to buy food.

[propertysearchaddiction]

I agree with the herd mentality!
I think most people see that even if they use up their meager savings and retirement, it still only buys them a year or two. Then they are in the same position just poorer. People around me are walking away all the time. Some call it strategic but in most instances I see, they payment changes from $2500 to $4500, $5500 etc and they simply don’t have the money because they have lived beyond their means for years. Even if they sell the Hummer, at some point they don’t have enough money to buy food.

[propertysearchaddiction]

I agree with the herd mentality!
I think most people see that even if they use up their meager savings and retirement, it still only buys them a year or two. Then they are in the same position just poorer. People around me are walking away all the time. Some call it strategic but in most instances I see, they payment changes from $2500 to $4500, $5500 etc and they simply don’t have the money because they have lived beyond their means for years. Even if they sell the Hummer, at some point they don’t have enough money to buy food.

[propertysearchaddiction]

I agree with the herd mentality!
I think most people see that even if they use up their meager savings and retirement, it still only buys them a year or two. Then they are in the same position just poorer. People around me are walking away all the time. Some call it strategic but in most instances I see, they payment changes from $2500 to $4500, $5500 etc and they simply don’t have the money because they have lived beyond their means for years. Even if they sell the Hummer, at some point they don’t have enough money to buy food.

[4plexowner]

“hopelessly upside down on a townhouse in San Marcos, he’s locked into a 9 % fixed rate, paying about $4500/mo for a 2 BR townhouse”

“those that don’t do it will be labeled as “suckers””

I have a hard time with the walk-away issue

the way I was raised makes me think that we should all honor the commitments we make – if you sign on the dotted line you should do everything in your power to honor that commitment

but then I read something like the first quote and think, “sucker!!!”

suckered into the housing bubble, suckered into taking on a too large mortgage payment, suckered into doing the ‘right thing’ by continuing to make payments on the mortgage – sucker!

logic tells me that the person being referred to will ultimately lose the townhouse so he might as well walk away (or at least stop making payments) before doing anymore damage to his finances

ethics vs logic – not an easy issue to resolve

[4plexowner]

“hopelessly upside down on a townhouse in San Marcos, he’s locked into a 9 % fixed rate, paying about $4500/mo for a 2 BR townhouse”

“those that don’t do it will be labeled as “suckers””

I have a hard time with the walk-away issue

the way I was raised makes me think that we should all honor the commitments we make – if you sign on the dotted line you should do everything in your power to honor that commitment

but then I read something like the first quote and think, “sucker!!!”

suckered into the housing bubble, suckered into taking on a too large mortgage payment, suckered into doing the ‘right thing’ by continuing to make payments on the mortgage – sucker!

logic tells me that the person being referred to will ultimately lose the townhouse so he might as well walk away (or at least stop making payments) before doing anymore damage to his finances

ethics vs logic – not an easy issue to resolve

[4plexowner]

“hopelessly upside down on a townhouse in San Marcos, he’s locked into a 9 % fixed rate, paying about $4500/mo for a 2 BR townhouse”

“those that don’t do it will be labeled as “suckers””

I have a hard time with the walk-away issue

the way I was raised makes me think that we should all honor the commitments we make – if you sign on the dotted line you should do everything in your power to honor that commitment

but then I read something like the first quote and think, “sucker!!!”

suckered into the housing bubble, suckered into taking on a too large mortgage payment, suckered into doing the ‘right thing’ by continuing to make payments on the mortgage – sucker!

logic tells me that the person being referred to will ultimately lose the townhouse so he might as well walk away (or at least stop making payments) before doing anymore damage to his finances

ethics vs logic – not an easy issue to resolve

[4plexowner]

“hopelessly upside down on a townhouse in San Marcos, he’s locked into a 9 % fixed rate, paying about $4500/mo for a 2 BR townhouse”

“those that don’t do it will be labeled as “suckers””

I have a hard time with the walk-away issue

the way I was raised makes me think that we should all honor the commitments we make – if you sign on the dotted line you should do everything in your power to honor that commitment

but then I read something like the first quote and think, “sucker!!!”

suckered into the housing bubble, suckered into taking on a too large mortgage payment, suckered into doing the ‘right thing’ by continuing to make payments on the mortgage – sucker!

logic tells me that the person being referred to will ultimately lose the townhouse so he might as well walk away (or at least stop making payments) before doing anymore damage to his finances

ethics vs logic – not an easy issue to resolve

[4plexowner]

“hopelessly upside down on a townhouse in San Marcos, he’s locked into a 9 % fixed rate, paying about $4500/mo for a 2 BR townhouse”

“those that don’t do it will be labeled as “suckers””

I have a hard time with the walk-away issue

the way I was raised makes me think that we should all honor the commitments we make – if you sign on the dotted line you should do everything in your power to honor that commitment

but then I read something like the first quote and think, “sucker!!!”

suckered into the housing bubble, suckered into taking on a too large mortgage payment, suckered into doing the ‘right thing’ by continuing to make payments on the mortgage – sucker!

logic tells me that the person being referred to will ultimately lose the townhouse so he might as well walk away (or at least stop making payments) before doing anymore damage to his finances

ethics vs logic – not an easy issue to resolve

[blahblahblah]

I have a friend in Arizona that walked from his home (which had a renter in it paying him rent) as well as his wife’s home. Nothing happened other than angry letters and phone calls from the banks for over a year in both cases, meanwhile they pocketed all of their mortgage payments as well as rent from the renter. They just purchased a brand-new house with cash and jingle mailed the keys to the other two homes back to the bank. They are living mortgage-free now (he is only about 32 or so).

[blahblahblah]

I have a friend in Arizona that walked from his home (which had a renter in it paying him rent) as well as his wife’s home. Nothing happened other than angry letters and phone calls from the banks for over a year in both cases, meanwhile they pocketed all of their mortgage payments as well as rent from the renter. They just purchased a brand-new house with cash and jingle mailed the keys to the other two homes back to the bank. They are living mortgage-free now (he is only about 32 or so).

[blahblahblah]

I have a friend in Arizona that walked from his home (which had a renter in it paying him rent) as well as his wife’s home. Nothing happened other than angry letters and phone calls from the banks for over a year in both cases, meanwhile they pocketed all of their mortgage payments as well as rent from the renter. They just purchased a brand-new house with cash and jingle mailed the keys to the other two homes back to the bank. They are living mortgage-free now (he is only about 32 or so).

[blahblahblah]

I have a friend in Arizona that walked from his home (which had a renter in it paying him rent) as well as his wife’s home. Nothing happened other than angry letters and phone calls from the banks for over a year in both cases, meanwhile they pocketed all of their mortgage payments as well as rent from the renter. They just purchased a brand-new house with cash and jingle mailed the keys to the other two homes back to the bank. They are living mortgage-free now (he is only about 32 or so).

[Author]

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