Intentional defaulting, not subprime mortgage is the problem

[toddt]

Many of the responses have focused on the how wrong the banks have been in all this, and that underwater homeowners are just making ‘business decisions’. I don’t have a problem with the line of thought, but it is misleading. The comparable ‘business decision’ everyone refers to would be bankruptcy not foreclosure.

Holding underwater homeowners responsible for debt is terrible policy if that is the only asset in question because it does amount to a servitude scenario and have little long-term positive results. I’d rather get them out of the situation, the home back on the market, and have a reformed debtor participating in our economy going forward. That’s what foreclosure is.

However, it is good policy to have recourse if there are other assets available. Bankruptcy should be the forced option here, including foreclosing on the home in question and taking an overall look at assets and liabilities to make a sound ‘business decision’ on the best plan.

Under our current laws, forced bankruptcy is not possible. That is, unless you are GM and Chrysler.

[donaldduckmoore]

This is not a completely market-driven force anymore. It is a distorted force that determines the dynamics of the market. I do not support the banks, but I do not support some of these folks who think they were smart flipping houses during boom time, and dumping houses during doom time, either. There are about 1/4 of these people who ended up foreclosure. If they do not want to take full responsibility such as going to prison, they should at least take care of some of the liens, such as property tax they owe until their houses are sold and transferred to the other parties. It was their decision to make to buy a house in the first place. Without these people to compete for houses in the market during the bubble with all these zero down payment and jacked up the prices, we would have been able to afford a big house to live.

[donaldduckmoore]

This is not a completely market-driven force anymore. It is a distorted force that determines the dynamics of the market. I do not support the banks, but I do not support some of these folks who think they were smart flipping houses during boom time, and dumping houses during doom time, either. There are about 1/4 of these people who ended up foreclosure. If they do not want to take full responsibility such as going to prison, they should at least take care of some of the liens, such as property tax they owe until their houses are sold and transferred to the other parties. It was their decision to make to buy a house in the first place. Without these people to compete for houses in the market during the bubble with all these zero down payment and jacked up the prices, we would have been able to afford a big house to live.

[donaldduckmoore]

This is not a completely market-driven force anymore. It is a distorted force that determines the dynamics of the market. I do not support the banks, but I do not support some of these folks who think they were smart flipping houses during boom time, and dumping houses during doom time, either. There are about 1/4 of these people who ended up foreclosure. If they do not want to take full responsibility such as going to prison, they should at least take care of some of the liens, such as property tax they owe until their houses are sold and transferred to the other parties. It was their decision to make to buy a house in the first place. Without these people to compete for houses in the market during the bubble with all these zero down payment and jacked up the prices, we would have been able to afford a big house to live.

[donaldduckmoore]

This is not a completely market-driven force anymore. It is a distorted force that determines the dynamics of the market. I do not support the banks, but I do not support some of these folks who think they were smart flipping houses during boom time, and dumping houses during doom time, either. There are about 1/4 of these people who ended up foreclosure. If they do not want to take full responsibility such as going to prison, they should at least take care of some of the liens, such as property tax they owe until their houses are sold and transferred to the other parties. It was their decision to make to buy a house in the first place. Without these people to compete for houses in the market during the bubble with all these zero down payment and jacked up the prices, we would have been able to afford a big house to live.

[donaldduckmoore]

This is not a completely market-driven force anymore. It is a distorted force that determines the dynamics of the market. I do not support the banks, but I do not support some of these folks who think they were smart flipping houses during boom time, and dumping houses during doom time, either. There are about 1/4 of these people who ended up foreclosure. If they do not want to take full responsibility such as going to prison, they should at least take care of some of the liens, such as property tax they owe until their houses are sold and transferred to the other parties. It was their decision to make to buy a house in the first place. Without these people to compete for houses in the market during the bubble with all these zero down payment and jacked up the prices, we would have been able to afford a big house to live.

[werewolf34]

I find it funny and really sad that no one, not one person ever talks about regulating realtors. It is just commonly accepted that realtors can do anything they want to sell homes. How about making them fiduciaries and responsible for pushing people into home they can’t afford?

Mortgages are non-recourse loans, period. In the interest rate, they’ve have priced (or forgot to price) the risk that people walk away.

I believe in personal responsibility but in a time where govt isn’t responsible and banks aren’t responsible why should the little guy be responsible?

B/c of social pressure? Not anymore, we have become a nation of crooks and patsies. You’re one or the other

[werewolf34]

I find it funny and really sad that no one, not one person ever talks about regulating realtors. It is just commonly accepted that realtors can do anything they want to sell homes. How about making them fiduciaries and responsible for pushing people into home they can’t afford?

Mortgages are non-recourse loans, period. In the interest rate, they’ve have priced (or forgot to price) the risk that people walk away.

I believe in personal responsibility but in a time where govt isn’t responsible and banks aren’t responsible why should the little guy be responsible?

B/c of social pressure? Not anymore, we have become a nation of crooks and patsies. You’re one or the other

[werewolf34]

I find it funny and really sad that no one, not one person ever talks about regulating realtors. It is just commonly accepted that realtors can do anything they want to sell homes. How about making them fiduciaries and responsible for pushing people into home they can’t afford?

Mortgages are non-recourse loans, period. In the interest rate, they’ve have priced (or forgot to price) the risk that people walk away.

I believe in personal responsibility but in a time where govt isn’t responsible and banks aren’t responsible why should the little guy be responsible?

B/c of social pressure? Not anymore, we have become a nation of crooks and patsies. You’re one or the other

[werewolf34]

I find it funny and really sad that no one, not one person ever talks about regulating realtors. It is just commonly accepted that realtors can do anything they want to sell homes. How about making them fiduciaries and responsible for pushing people into home they can’t afford?

Mortgages are non-recourse loans, period. In the interest rate, they’ve have priced (or forgot to price) the risk that people walk away.

I believe in personal responsibility but in a time where govt isn’t responsible and banks aren’t responsible why should the little guy be responsible?

B/c of social pressure? Not anymore, we have become a nation of crooks and patsies. You’re one or the other

[werewolf34]

I find it funny and really sad that no one, not one person ever talks about regulating realtors. It is just commonly accepted that realtors can do anything they want to sell homes. How about making them fiduciaries and responsible for pushing people into home they can’t afford?

Mortgages are non-recourse loans, period. In the interest rate, they’ve have priced (or forgot to price) the risk that people walk away.

I believe in personal responsibility but in a time where govt isn’t responsible and banks aren’t responsible why should the little guy be responsible?

B/c of social pressure? Not anymore, we have become a nation of crooks and patsies. You’re one or the other

[sdduuuude]

It’s not the problem.
It’s the solution, really.

[sdduuuude]

It’s not the problem.
It’s the solution, really.

[sdduuuude]

It’s not the problem.
It’s the solution, really.

[sdduuuude]

It’s not the problem.
It’s the solution, really.

[Author]

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