Report shows strategic defaults increasing

[briansd1]

sd realtor, I understand your point about the consequences of unsavory behavior.

As a libertarian do you really expect individuals to behave in the communal interest, to the detriment of their own personal interests?

The invisible hand doesn’t work when individual interests conflict with the benefit of the whole.

That’s why we need a guiding hand. Few buyers would walk away if the downpayment were substantial. Banks would not lend stupidly if interest rates were higher and if instruments to spread risks around were regulated. I believe that those are the root cause of the problem.

On the subject of foreclosures, vacating a house doesn’t mean that the bank takes title and is responsible to maintain it.

Want banks to foreclosure quickly? Force them to aggressively write down the loan proportional to the collateral.

Economists would actually tell you that vacant houses are wasted economic assets. It’s better to have them occupied than vacant.

[Arraya]

[quote=SD Realtor]Arraya tell me the difference between one who “realizes” the mistake they made and one who knowlingly buys a home and never pays?

What is the real difference?

The result is the same for sure isn’t it?

[/quote]

Intent, which is incredibly hard to prove in the court room. Like when Bernake testified in congress that there was no bubble in Dec 2005. If he knowingly mislead it is up to 30 years in jail whereas being a dumbass you get off scott free.

I guess you could make similar analogies for RE agents during the bubble intent verse being stupid. I’m sure there were plenty that knowingly and unknowingly put people in bad positions.

[Arraya]

[quote=SD Realtor]Arraya tell me the difference between one who “realizes” the mistake they made and one who knowlingly buys a home and never pays?

What is the real difference?

The result is the same for sure isn’t it?

[/quote]

Intent, which is incredibly hard to prove in the court room. Like when Bernake testified in congress that there was no bubble in Dec 2005. If he knowingly mislead it is up to 30 years in jail whereas being a dumbass you get off scott free.

I guess you could make similar analogies for RE agents during the bubble intent verse being stupid. I’m sure there were plenty that knowingly and unknowingly put people in bad positions.

[Arraya]

[quote=SD Realtor]Arraya tell me the difference between one who “realizes” the mistake they made and one who knowlingly buys a home and never pays?

What is the real difference?

The result is the same for sure isn’t it?

[/quote]

Intent, which is incredibly hard to prove in the court room. Like when Bernake testified in congress that there was no bubble in Dec 2005. If he knowingly mislead it is up to 30 years in jail whereas being a dumbass you get off scott free.

I guess you could make similar analogies for RE agents during the bubble intent verse being stupid. I’m sure there were plenty that knowingly and unknowingly put people in bad positions.

[Arraya]

[quote=SD Realtor]Arraya tell me the difference between one who “realizes” the mistake they made and one who knowlingly buys a home and never pays?

What is the real difference?

The result is the same for sure isn’t it?

[/quote]

Intent, which is incredibly hard to prove in the court room. Like when Bernake testified in congress that there was no bubble in Dec 2005. If he knowingly mislead it is up to 30 years in jail whereas being a dumbass you get off scott free.

I guess you could make similar analogies for RE agents during the bubble intent verse being stupid. I’m sure there were plenty that knowingly and unknowingly put people in bad positions.

[Arraya]

[quote=SD Realtor]Arraya tell me the difference between one who “realizes” the mistake they made and one who knowlingly buys a home and never pays?

What is the real difference?

The result is the same for sure isn’t it?

[/quote]

Intent, which is incredibly hard to prove in the court room. Like when Bernake testified in congress that there was no bubble in Dec 2005. If he knowingly mislead it is up to 30 years in jail whereas being a dumbass you get off scott free.

I guess you could make similar analogies for RE agents during the bubble intent verse being stupid. I’m sure there were plenty that knowingly and unknowingly put people in bad positions.

[Vishon]

To me this is a purely legal issue. The money was borrowed in a business deal with terms well defined. Defaulting is an option with consequences. If the owner is willing to accept the consequences, it is their choice to default.

It is not like the money was borrowed from their family or friends with no contract signed, and the owner is not paying it back.

[Vishon]

To me this is a purely legal issue. The money was borrowed in a business deal with terms well defined. Defaulting is an option with consequences. If the owner is willing to accept the consequences, it is their choice to default.

It is not like the money was borrowed from their family or friends with no contract signed, and the owner is not paying it back.

[Vishon]

To me this is a purely legal issue. The money was borrowed in a business deal with terms well defined. Defaulting is an option with consequences. If the owner is willing to accept the consequences, it is their choice to default.

It is not like the money was borrowed from their family or friends with no contract signed, and the owner is not paying it back.

[Vishon]

To me this is a purely legal issue. The money was borrowed in a business deal with terms well defined. Defaulting is an option with consequences. If the owner is willing to accept the consequences, it is their choice to default.

It is not like the money was borrowed from their family or friends with no contract signed, and the owner is not paying it back.

[Vishon]

To me this is a purely legal issue. The money was borrowed in a business deal with terms well defined. Defaulting is an option with consequences. If the owner is willing to accept the consequences, it is their choice to default.

It is not like the money was borrowed from their family or friends with no contract signed, and the owner is not paying it back.

[sdrealtor]

I have heard of many people getting pursued for deficiencies. The one action rule takes care of the 1st mortgage that forecloses. A sold out 2nd (that gets nothing) that is not a purchase money loan has full reourse. They can hid in the tall grass for years and when the economy recovers there will be a knock on the door.

[sdrealtor]

I have heard of many people getting pursued for deficiencies. The one action rule takes care of the 1st mortgage that forecloses. A sold out 2nd (that gets nothing) that is not a purchase money loan has full reourse. They can hid in the tall grass for years and when the economy recovers there will be a knock on the door.

[sdrealtor]

I have heard of many people getting pursued for deficiencies. The one action rule takes care of the 1st mortgage that forecloses. A sold out 2nd (that gets nothing) that is not a purchase money loan has full reourse. They can hid in the tall grass for years and when the economy recovers there will be a knock on the door.

[sdrealtor]

I have heard of many people getting pursued for deficiencies. The one action rule takes care of the 1st mortgage that forecloses. A sold out 2nd (that gets nothing) that is not a purchase money loan has full reourse. They can hid in the tall grass for years and when the economy recovers there will be a knock on the door.

[Author]

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