“Dear Homeowner, we lowered your payment” letter

[scaredyclassic]

These sorts of nasty comments are uncalled for. He is honoring the contract. The contract apparently allows for walking away. But even if it didn’t, even if he were breaching the contract, well, to say that breaching a contract is indicative of a lack of morality ethics or pride is, well, kind of just wrong.

Indeed, in contracts class at most any law school you might pass through, most professors will touch on the subject of efficient breach and the policy issues involved. Since contracts and exchanges are supposed to maximize utility and happiness, we as a society don’t want people locked into contracts and would prefer that they breach them when the breach results in greater utility all around.

there can be penalties for breach, and that’s certainly part of making sure the breach is efficient, so long as everyone understands and agrees on the penalties if any at the outset. or the contract could allow for breach by either party at any time. Like an employment contract could say, hey, you can quit any time, we can fire you any time. That would be arguably be more efficient in some cases, since the employer could get rid of a deadbeat and the employee could move on to greener pastures.

Maybe the easiest example to see is marriage. We prefer miserable people to get divorced. it’s less eficient for society if wives stay witht heir abusers, or men stay with women who won’t have sex with them. Better to breach the contract so that both parties can maximize their happines. Honoring the contract for its own sake probably doesn’t make us a more moral, ethical or prouder society. Ideally, it would be nice if the parties wanted to honor the contract, but would you yell at some woman who was breaching her marriage contract that she has no pride because she was breaking her marriage contract and dumping the dude who beat and raped her every night? so, grow up…don’t berate a guy for the efficient breach of his contract.

[Arraya]

SUCK IT UP AND HONOR YOUR COMMITMENT YOU LOSER!

He is. His commitment is to make his payment or give the house back. He is opting for the latter.

I encourage everybody in a similar situation to do the same. Corporations do this all the time all over the world. Why should they be allowed out of a bad deal and not the average person?

There once was such a thing as *debtors prisons*………perhaps we need them again since words like Morality, ethics and pride don’t resonate with people like you.

I guess the USG should be in jail then. Morals and ethics are not part of the equation. There is no such thing in a business contract. And pride, well that is for fools. But don’t you worry, that money he is defaulting on is not even real. It was created out of thin air and the bank gets the house and he gets bad credit. So who really gets the bad deal? The bank gets something for nothing. Who is the unethical in this equation?

I’m sure people like you will be cheering the way for the irresponsible to be put in jail in the very near future. You would make a good nazi, surely. Maybe we should bring back slavery and child labor which was around the same time as debtor prisons.

[Arraya]

SUCK IT UP AND HONOR YOUR COMMITMENT YOU LOSER!

He is. His commitment is to make his payment or give the house back. He is opting for the latter.

I encourage everybody in a similar situation to do the same. Corporations do this all the time all over the world. Why should they be allowed out of a bad deal and not the average person?

There once was such a thing as *debtors prisons*………perhaps we need them again since words like Morality, ethics and pride don’t resonate with people like you.

I guess the USG should be in jail then. Morals and ethics are not part of the equation. There is no such thing in a business contract. And pride, well that is for fools. But don’t you worry, that money he is defaulting on is not even real. It was created out of thin air and the bank gets the house and he gets bad credit. So who really gets the bad deal? The bank gets something for nothing. Who is the unethical in this equation?

I’m sure people like you will be cheering the way for the irresponsible to be put in jail in the very near future. You would make a good nazi, surely. Maybe we should bring back slavery and child labor which was around the same time as debtor prisons.

[Arraya]

SUCK IT UP AND HONOR YOUR COMMITMENT YOU LOSER!

He is. His commitment is to make his payment or give the house back. He is opting for the latter.

I encourage everybody in a similar situation to do the same. Corporations do this all the time all over the world. Why should they be allowed out of a bad deal and not the average person?

There once was such a thing as *debtors prisons*………perhaps we need them again since words like Morality, ethics and pride don’t resonate with people like you.

I guess the USG should be in jail then. Morals and ethics are not part of the equation. There is no such thing in a business contract. And pride, well that is for fools. But don’t you worry, that money he is defaulting on is not even real. It was created out of thin air and the bank gets the house and he gets bad credit. So who really gets the bad deal? The bank gets something for nothing. Who is the unethical in this equation?

I’m sure people like you will be cheering the way for the irresponsible to be put in jail in the very near future. You would make a good nazi, surely. Maybe we should bring back slavery and child labor which was around the same time as debtor prisons.

[Arraya]

SUCK IT UP AND HONOR YOUR COMMITMENT YOU LOSER!

He is. His commitment is to make his payment or give the house back. He is opting for the latter.

I encourage everybody in a similar situation to do the same. Corporations do this all the time all over the world. Why should they be allowed out of a bad deal and not the average person?

There once was such a thing as *debtors prisons*………perhaps we need them again since words like Morality, ethics and pride don’t resonate with people like you.

I guess the USG should be in jail then. Morals and ethics are not part of the equation. There is no such thing in a business contract. And pride, well that is for fools. But don’t you worry, that money he is defaulting on is not even real. It was created out of thin air and the bank gets the house and he gets bad credit. So who really gets the bad deal? The bank gets something for nothing. Who is the unethical in this equation?

I’m sure people like you will be cheering the way for the irresponsible to be put in jail in the very near future. You would make a good nazi, surely. Maybe we should bring back slavery and child labor which was around the same time as debtor prisons.

[Arraya]

SUCK IT UP AND HONOR YOUR COMMITMENT YOU LOSER!

He is. His commitment is to make his payment or give the house back. He is opting for the latter.

I encourage everybody in a similar situation to do the same. Corporations do this all the time all over the world. Why should they be allowed out of a bad deal and not the average person?

There once was such a thing as *debtors prisons*………perhaps we need them again since words like Morality, ethics and pride don’t resonate with people like you.

I guess the USG should be in jail then. Morals and ethics are not part of the equation. There is no such thing in a business contract. And pride, well that is for fools. But don’t you worry, that money he is defaulting on is not even real. It was created out of thin air and the bank gets the house and he gets bad credit. So who really gets the bad deal? The bank gets something for nothing. Who is the unethical in this equation?

I’m sure people like you will be cheering the way for the irresponsible to be put in jail in the very near future. You would make a good nazi, surely. Maybe we should bring back slavery and child labor which was around the same time as debtor prisons.

[scaredyclassic]

why should just the debtor go to prison? the debtor’s immoral behavior completley benefitted his family. they were living in the house. debtor’s prison shouldn’t just be for the debtor, but for every person who directly benefitted from the debt. everyone in the family should go to prison. otherwise, the kids and spouse who claim to be “innocnet” would be getting away scot-free. what kind of lesson is that teaching others? if you hang around with criminals, that is, debtors who cannot pay, expect repercussions. don’t do the crime or live with the deadbeat if you cannot do the time.

[scaredyclassic]

why should just the debtor go to prison? the debtor’s immoral behavior completley benefitted his family. they were living in the house. debtor’s prison shouldn’t just be for the debtor, but for every person who directly benefitted from the debt. everyone in the family should go to prison. otherwise, the kids and spouse who claim to be “innocnet” would be getting away scot-free. what kind of lesson is that teaching others? if you hang around with criminals, that is, debtors who cannot pay, expect repercussions. don’t do the crime or live with the deadbeat if you cannot do the time.

[scaredyclassic]

why should just the debtor go to prison? the debtor’s immoral behavior completley benefitted his family. they were living in the house. debtor’s prison shouldn’t just be for the debtor, but for every person who directly benefitted from the debt. everyone in the family should go to prison. otherwise, the kids and spouse who claim to be “innocnet” would be getting away scot-free. what kind of lesson is that teaching others? if you hang around with criminals, that is, debtors who cannot pay, expect repercussions. don’t do the crime or live with the deadbeat if you cannot do the time.

[scaredyclassic]

why should just the debtor go to prison? the debtor’s immoral behavior completley benefitted his family. they were living in the house. debtor’s prison shouldn’t just be for the debtor, but for every person who directly benefitted from the debt. everyone in the family should go to prison. otherwise, the kids and spouse who claim to be “innocnet” would be getting away scot-free. what kind of lesson is that teaching others? if you hang around with criminals, that is, debtors who cannot pay, expect repercussions. don’t do the crime or live with the deadbeat if you cannot do the time.

[scaredyclassic]

why should just the debtor go to prison? the debtor’s immoral behavior completley benefitted his family. they were living in the house. debtor’s prison shouldn’t just be for the debtor, but for every person who directly benefitted from the debt. everyone in the family should go to prison. otherwise, the kids and spouse who claim to be “innocnet” would be getting away scot-free. what kind of lesson is that teaching others? if you hang around with criminals, that is, debtors who cannot pay, expect repercussions. don’t do the crime or live with the deadbeat if you cannot do the time.

[Coronita]

[quote=dd123][quote=23109VC]i believe this. while there could be a catch, such as making the debt recourse, or some other catch – prepayment penalties? whatever it is – the banks are screwed.

i bought my temecula house for $350k thinking it was such a smoking deal. 1900 sq ft. it is a very nice house and I like it, but the house next to me just went into foreclosure/bank owned and the bank is asking $299k and THAT house is 2500sq ft. so more space, far less money. who knows what it will ultimately sell for.. 250-275k?

making my house worth what?? $200k?

why in the hell woudl the bank want to foreclose on me when they KNOW that they have a $350k loan and they can only get maybe $200k PLUS COSTS to foreclose….

if lowering the payments by $1000/month or whatever keeps people in the home – they will do it b/c the alternative is even worse.

i’m one of those people who CAN afford to stay, does pay on time, am responsible, bought a house within my means… and it pisses me off to see idiots who bought a hosue they had no busines buying, aon an ARM, now cry foul and get their loan % rate, principle all whacked to nothing… b/c they were stupid.

that is such BS. so you know what, why not do it too? i am really thinking of not apying my mortgage. what will happen. the bank is’nt going to foreclose on me. they would lose over $150k. they will threaten me, try to scaer me into paying, but ultimately, if i say “f**K you” and I become a jerk who manipulates the system – guess what, they will renegotiate with me, reduce my int rate, reduce my balnce, they will do something to keep me in the house.

it’s a system that drives good responsible people to do things they normally wouldn’t do. but if the “system” is goign to reward losers – then why be a good guy and get royally screwed?

[/quote]

Someone has aptly said so “If you owe bank 10K, it’s your problem but if you owe your back 100K, its the bank problem”
It looks like this saying is becoming reality..
[/quote]

I said something like this, but for me it was if you owe $100k, it’s your problem, if you owe something like $10million, it’s the bank problem. But i guess if you multiple the number of people that owe $100k, then it really becomes the bank problem.

[Coronita]

[quote=dd123][quote=23109VC]i believe this. while there could be a catch, such as making the debt recourse, or some other catch – prepayment penalties? whatever it is – the banks are screwed.

i bought my temecula house for $350k thinking it was such a smoking deal. 1900 sq ft. it is a very nice house and I like it, but the house next to me just went into foreclosure/bank owned and the bank is asking $299k and THAT house is 2500sq ft. so more space, far less money. who knows what it will ultimately sell for.. 250-275k?

making my house worth what?? $200k?

why in the hell woudl the bank want to foreclose on me when they KNOW that they have a $350k loan and they can only get maybe $200k PLUS COSTS to foreclose….

if lowering the payments by $1000/month or whatever keeps people in the home – they will do it b/c the alternative is even worse.

i’m one of those people who CAN afford to stay, does pay on time, am responsible, bought a house within my means… and it pisses me off to see idiots who bought a hosue they had no busines buying, aon an ARM, now cry foul and get their loan % rate, principle all whacked to nothing… b/c they were stupid.

that is such BS. so you know what, why not do it too? i am really thinking of not apying my mortgage. what will happen. the bank is’nt going to foreclose on me. they would lose over $150k. they will threaten me, try to scaer me into paying, but ultimately, if i say “f**K you” and I become a jerk who manipulates the system – guess what, they will renegotiate with me, reduce my int rate, reduce my balnce, they will do something to keep me in the house.

it’s a system that drives good responsible people to do things they normally wouldn’t do. but if the “system” is goign to reward losers – then why be a good guy and get royally screwed?

[/quote]

Someone has aptly said so “If you owe bank 10K, it’s your problem but if you owe your back 100K, its the bank problem”
It looks like this saying is becoming reality..
[/quote]

I said something like this, but for me it was if you owe $100k, it’s your problem, if you owe something like $10million, it’s the bank problem. But i guess if you multiple the number of people that owe $100k, then it really becomes the bank problem.

[Coronita]

[quote=dd123][quote=23109VC]i believe this. while there could be a catch, such as making the debt recourse, or some other catch – prepayment penalties? whatever it is – the banks are screwed.

i bought my temecula house for $350k thinking it was such a smoking deal. 1900 sq ft. it is a very nice house and I like it, but the house next to me just went into foreclosure/bank owned and the bank is asking $299k and THAT house is 2500sq ft. so more space, far less money. who knows what it will ultimately sell for.. 250-275k?

making my house worth what?? $200k?

why in the hell woudl the bank want to foreclose on me when they KNOW that they have a $350k loan and they can only get maybe $200k PLUS COSTS to foreclose….

if lowering the payments by $1000/month or whatever keeps people in the home – they will do it b/c the alternative is even worse.

i’m one of those people who CAN afford to stay, does pay on time, am responsible, bought a house within my means… and it pisses me off to see idiots who bought a hosue they had no busines buying, aon an ARM, now cry foul and get their loan % rate, principle all whacked to nothing… b/c they were stupid.

that is such BS. so you know what, why not do it too? i am really thinking of not apying my mortgage. what will happen. the bank is’nt going to foreclose on me. they would lose over $150k. they will threaten me, try to scaer me into paying, but ultimately, if i say “f**K you” and I become a jerk who manipulates the system – guess what, they will renegotiate with me, reduce my int rate, reduce my balnce, they will do something to keep me in the house.

it’s a system that drives good responsible people to do things they normally wouldn’t do. but if the “system” is goign to reward losers – then why be a good guy and get royally screwed?

[/quote]

Someone has aptly said so “If you owe bank 10K, it’s your problem but if you owe your back 100K, its the bank problem”
It looks like this saying is becoming reality..
[/quote]

I said something like this, but for me it was if you owe $100k, it’s your problem, if you owe something like $10million, it’s the bank problem. But i guess if you multiple the number of people that owe $100k, then it really becomes the bank problem.

[Coronita]

[quote=dd123][quote=23109VC]i believe this. while there could be a catch, such as making the debt recourse, or some other catch – prepayment penalties? whatever it is – the banks are screwed.

i bought my temecula house for $350k thinking it was such a smoking deal. 1900 sq ft. it is a very nice house and I like it, but the house next to me just went into foreclosure/bank owned and the bank is asking $299k and THAT house is 2500sq ft. so more space, far less money. who knows what it will ultimately sell for.. 250-275k?

making my house worth what?? $200k?

why in the hell woudl the bank want to foreclose on me when they KNOW that they have a $350k loan and they can only get maybe $200k PLUS COSTS to foreclose….

if lowering the payments by $1000/month or whatever keeps people in the home – they will do it b/c the alternative is even worse.

i’m one of those people who CAN afford to stay, does pay on time, am responsible, bought a house within my means… and it pisses me off to see idiots who bought a hosue they had no busines buying, aon an ARM, now cry foul and get their loan % rate, principle all whacked to nothing… b/c they were stupid.

that is such BS. so you know what, why not do it too? i am really thinking of not apying my mortgage. what will happen. the bank is’nt going to foreclose on me. they would lose over $150k. they will threaten me, try to scaer me into paying, but ultimately, if i say “f**K you” and I become a jerk who manipulates the system – guess what, they will renegotiate with me, reduce my int rate, reduce my balnce, they will do something to keep me in the house.

it’s a system that drives good responsible people to do things they normally wouldn’t do. but if the “system” is goign to reward losers – then why be a good guy and get royally screwed?

[/quote]

Someone has aptly said so “If you owe bank 10K, it’s your problem but if you owe your back 100K, its the bank problem”
It looks like this saying is becoming reality..
[/quote]

I said something like this, but for me it was if you owe $100k, it’s your problem, if you owe something like $10million, it’s the bank problem. But i guess if you multiple the number of people that owe $100k, then it really becomes the bank problem.

[Author]

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