on topic: norm assymetry

[briansd1]

I too love sociology and psychology. That’s what life is all about, I believe.

Here is the key:

Research shows that bankruptcies and foreclosures are “contagious.” People are less likely to think it’s immoral to walk away from their home if they know others who have done so. And if enough people do it, the stigma begins to erode.

The contagion will hit different areas differently. In speculative neighborhoods such as Downtown SD, people will walk away once they realize the prospects of making it whole are nil (it will happen in light-bulb moments for different homeowners at different times).

In more established neighborhood such as Hillcrest and Mission Hills, where there are few children, the peak buyers (and cash out refinance homeowners) will start walking when they realize that house appreciation will never return to peak levels in their lifetimes.

Let’s face it, peak home buyers in their 40s and 50s are unlikely to be bailed out by organic appreciation. In the mean time they are throwing good money after bad. Most folks retire in the 60s and once they do, they can’t afford large mortgages. Then they die in their 70s.

In neighborhoods such as Rancho Bernardo and Scripps Ranch, families with children are less likely to walk away because of social stigma, IF they are sill employed and can make the payments.

If unemployment continues for longer periods, they will be forced to default. Remember that in the past housing recessions always followed employment recessions.

This time, the housing recession caused the economic recession, which in turn caused unemployment which will then cause a follow-up housing recession.

Because housing markets are all connected, the neighborhoods that suffer less foreclosures will stagnate for longer.

I’ve said all along that peak purchases (and refinances) will get “recycled” or “purged” one way or another to equilibrium.

Social attitudes change. I know of several folks who walked away and I don’t view them any less because of their actions.

[scaredyclassic]

i remember a particularly obnoxious debt collector trying to collect on a debt I was disputing (and ultimately settled for pennies on the dollar while in litigation, because there was a truly good defense) who kept intoning gravely, “you made a promise to pay that money, you gave your word…” And I kept laughing at him. but he kept saying it, over and over as if it were the only line he could remember from debt collector training school. Part of the settlement was also that it couldn’t be reported to the credit agencies. I can still hear the words of that debt collector ringing in my head, like the ghost of christmas visa bills past — YOU MADE A PROMISE! it sort of had a tiny effect on me, very tiny. Probably works on some people. I made a promise, i guess, but the nature of the promise was open to interpretation…

[scaredyclassic]

i remember a particularly obnoxious debt collector trying to collect on a debt I was disputing (and ultimately settled for pennies on the dollar while in litigation, because there was a truly good defense) who kept intoning gravely, “you made a promise to pay that money, you gave your word…” And I kept laughing at him. but he kept saying it, over and over as if it were the only line he could remember from debt collector training school. Part of the settlement was also that it couldn’t be reported to the credit agencies. I can still hear the words of that debt collector ringing in my head, like the ghost of christmas visa bills past — YOU MADE A PROMISE! it sort of had a tiny effect on me, very tiny. Probably works on some people. I made a promise, i guess, but the nature of the promise was open to interpretation…

[scaredyclassic]

i remember a particularly obnoxious debt collector trying to collect on a debt I was disputing (and ultimately settled for pennies on the dollar while in litigation, because there was a truly good defense) who kept intoning gravely, “you made a promise to pay that money, you gave your word…” And I kept laughing at him. but he kept saying it, over and over as if it were the only line he could remember from debt collector training school. Part of the settlement was also that it couldn’t be reported to the credit agencies. I can still hear the words of that debt collector ringing in my head, like the ghost of christmas visa bills past — YOU MADE A PROMISE! it sort of had a tiny effect on me, very tiny. Probably works on some people. I made a promise, i guess, but the nature of the promise was open to interpretation…

[scaredyclassic]

i remember a particularly obnoxious debt collector trying to collect on a debt I was disputing (and ultimately settled for pennies on the dollar while in litigation, because there was a truly good defense) who kept intoning gravely, “you made a promise to pay that money, you gave your word…” And I kept laughing at him. but he kept saying it, over and over as if it were the only line he could remember from debt collector training school. Part of the settlement was also that it couldn’t be reported to the credit agencies. I can still hear the words of that debt collector ringing in my head, like the ghost of christmas visa bills past — YOU MADE A PROMISE! it sort of had a tiny effect on me, very tiny. Probably works on some people. I made a promise, i guess, but the nature of the promise was open to interpretation…

[scaredyclassic]

i remember a particularly obnoxious debt collector trying to collect on a debt I was disputing (and ultimately settled for pennies on the dollar while in litigation, because there was a truly good defense) who kept intoning gravely, “you made a promise to pay that money, you gave your word…” And I kept laughing at him. but he kept saying it, over and over as if it were the only line he could remember from debt collector training school. Part of the settlement was also that it couldn’t be reported to the credit agencies. I can still hear the words of that debt collector ringing in my head, like the ghost of christmas visa bills past — YOU MADE A PROMISE! it sort of had a tiny effect on me, very tiny. Probably works on some people. I made a promise, i guess, but the nature of the promise was open to interpretation…

[bubba99]

One twist in the walk-away strategy is “integrity”. Although I know it is a contract, and the contract allows for foreclosure as a remedy – my employer says it is an integrity issue. And a foreclosure – unless I perfect all of the non-recourse dept – will result in termination.

So the bottom line is – walk away from the mortgage and lose your job.

I wonder how many companies besides the US Government feel this way?

[bubba99]

One twist in the walk-away strategy is “integrity”. Although I know it is a contract, and the contract allows for foreclosure as a remedy – my employer says it is an integrity issue. And a foreclosure – unless I perfect all of the non-recourse dept – will result in termination.

So the bottom line is – walk away from the mortgage and lose your job.

I wonder how many companies besides the US Government feel this way?

[bubba99]

One twist in the walk-away strategy is “integrity”. Although I know it is a contract, and the contract allows for foreclosure as a remedy – my employer says it is an integrity issue. And a foreclosure – unless I perfect all of the non-recourse dept – will result in termination.

So the bottom line is – walk away from the mortgage and lose your job.

I wonder how many companies besides the US Government feel this way?

[bubba99]

One twist in the walk-away strategy is “integrity”. Although I know it is a contract, and the contract allows for foreclosure as a remedy – my employer says it is an integrity issue. And a foreclosure – unless I perfect all of the non-recourse dept – will result in termination.

So the bottom line is – walk away from the mortgage and lose your job.

I wonder how many companies besides the US Government feel this way?

[bubba99]

One twist in the walk-away strategy is “integrity”. Although I know it is a contract, and the contract allows for foreclosure as a remedy – my employer says it is an integrity issue. And a foreclosure – unless I perfect all of the non-recourse dept – will result in termination.

So the bottom line is – walk away from the mortgage and lose your job.

I wonder how many companies besides the US Government feel this way?

[scaredyclassic]

is that in the employee handbook? sue the employer

[scaredyclassic]

is that in the employee handbook? sue the employer

[scaredyclassic]

is that in the employee handbook? sue the employer

[scaredyclassic]

is that in the employee handbook? sue the employer

[Author]

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