The new smart financial move is walking away

[dbapig]

http://www.latimes.com/business/la-fi-walkaway17-2010mar17,0,2149033,full.story

Wynn Bloch has always dutifully paid her bills and socked away money for retirement. But in December she defaulted on the mortgage on her Palm Desert home, even though she could afford the payments.

Bloch paid $385,000 for the two-bedroom in 2006, when prices were still surging. Comparable homes are now selling in the low-$200,000s. At 66, the retired psychologist doubted she’d see her investment rebound in her lifetime. Plus, she said she was duped into an expensive loan.
…

[mydogsarelazy]

I read the article this morning and found it well done. One thing that is pointed out is that some observers are surprised that more underwater homeowners haven’t yet walked away.

In the coming years mortgage fatigue will wear down many more people. What this article describes is a trend that is really the beginning of a slow melt.

JS

[mydogsarelazy]

I read the article this morning and found it well done. One thing that is pointed out is that some observers are surprised that more underwater homeowners haven’t yet walked away.

In the coming years mortgage fatigue will wear down many more people. What this article describes is a trend that is really the beginning of a slow melt.

JS

[mydogsarelazy]

I read the article this morning and found it well done. One thing that is pointed out is that some observers are surprised that more underwater homeowners haven’t yet walked away.

In the coming years mortgage fatigue will wear down many more people. What this article describes is a trend that is really the beginning of a slow melt.

JS

[mydogsarelazy]

I read the article this morning and found it well done. One thing that is pointed out is that some observers are surprised that more underwater homeowners haven’t yet walked away.

In the coming years mortgage fatigue will wear down many more people. What this article describes is a trend that is really the beginning of a slow melt.

JS

[mydogsarelazy]

I read the article this morning and found it well done. One thing that is pointed out is that some observers are surprised that more underwater homeowners haven’t yet walked away.

In the coming years mortgage fatigue will wear down many more people. What this article describes is a trend that is really the beginning of a slow melt.

JS

[GoUSC]

While I can’t condone those people that used their home as an ATM and now are defaulting… There are a group of people out there that just bought at a badtime and now are underwriter. Every day on the news they hear about the billion $+ bailouts the banks were given and how the companies are paying out huge bonuses meanwhile they sit on underwater mortgages. I can’t blame them for walking away… This problem is going to get bigger and bigger I think.

[GoUSC]

While I can’t condone those people that used their home as an ATM and now are defaulting… There are a group of people out there that just bought at a badtime and now are underwriter. Every day on the news they hear about the billion $+ bailouts the banks were given and how the companies are paying out huge bonuses meanwhile they sit on underwater mortgages. I can’t blame them for walking away… This problem is going to get bigger and bigger I think.

[GoUSC]

While I can’t condone those people that used their home as an ATM and now are defaulting… There are a group of people out there that just bought at a badtime and now are underwriter. Every day on the news they hear about the billion $+ bailouts the banks were given and how the companies are paying out huge bonuses meanwhile they sit on underwater mortgages. I can’t blame them for walking away… This problem is going to get bigger and bigger I think.

[GoUSC]

While I can’t condone those people that used their home as an ATM and now are defaulting… There are a group of people out there that just bought at a badtime and now are underwriter. Every day on the news they hear about the billion $+ bailouts the banks were given and how the companies are paying out huge bonuses meanwhile they sit on underwater mortgages. I can’t blame them for walking away… This problem is going to get bigger and bigger I think.

[GoUSC]

While I can’t condone those people that used their home as an ATM and now are defaulting… There are a group of people out there that just bought at a badtime and now are underwriter. Every day on the news they hear about the billion $+ bailouts the banks were given and how the companies are paying out huge bonuses meanwhile they sit on underwater mortgages. I can’t blame them for walking away… This problem is going to get bigger and bigger I think.

[davelj]

As a “business decision” everyone’s gotta do what they gotta do. If walking away makes economic sense after taking all the various factors into consideration, then one should do it. But… the only thing that bothers me about a lot of these folks is the blame and “anger” (from the article). The buyer is the Prime Mover in every real estate transaction. Without the buyer finding the home s/he wants to buy and THEN going to the lender to get it funded there is no transaction. Which is why I assign roughly 65% of the blame in this whole fiasco to Reckless Buyers and the other 35% to Reckless Lenders. The buyers aren’t victims here – they’re just financial retards. So, if they want to walk away – ok, do it. But don’t try to feed me some bullshit line about how it’s ALL the bank’s fault, NONE of the buyer’s fault, and you’re so ANGRY at the banks. If you want to be angry, be angry at yourself for being a complete idiot.

Now, the folks who either haven’t bought or did buy but aren’t walking away… they have the right to be ANGRY at both parties.

[davelj]

As a “business decision” everyone’s gotta do what they gotta do. If walking away makes economic sense after taking all the various factors into consideration, then one should do it. But… the only thing that bothers me about a lot of these folks is the blame and “anger” (from the article). The buyer is the Prime Mover in every real estate transaction. Without the buyer finding the home s/he wants to buy and THEN going to the lender to get it funded there is no transaction. Which is why I assign roughly 65% of the blame in this whole fiasco to Reckless Buyers and the other 35% to Reckless Lenders. The buyers aren’t victims here – they’re just financial retards. So, if they want to walk away – ok, do it. But don’t try to feed me some bullshit line about how it’s ALL the bank’s fault, NONE of the buyer’s fault, and you’re so ANGRY at the banks. If you want to be angry, be angry at yourself for being a complete idiot.

Now, the folks who either haven’t bought or did buy but aren’t walking away… they have the right to be ANGRY at both parties.

[davelj]

As a “business decision” everyone’s gotta do what they gotta do. If walking away makes economic sense after taking all the various factors into consideration, then one should do it. But… the only thing that bothers me about a lot of these folks is the blame and “anger” (from the article). The buyer is the Prime Mover in every real estate transaction. Without the buyer finding the home s/he wants to buy and THEN going to the lender to get it funded there is no transaction. Which is why I assign roughly 65% of the blame in this whole fiasco to Reckless Buyers and the other 35% to Reckless Lenders. The buyers aren’t victims here – they’re just financial retards. So, if they want to walk away – ok, do it. But don’t try to feed me some bullshit line about how it’s ALL the bank’s fault, NONE of the buyer’s fault, and you’re so ANGRY at the banks. If you want to be angry, be angry at yourself for being a complete idiot.

Now, the folks who either haven’t bought or did buy but aren’t walking away… they have the right to be ANGRY at both parties.

[davelj]

As a “business decision” everyone’s gotta do what they gotta do. If walking away makes economic sense after taking all the various factors into consideration, then one should do it. But… the only thing that bothers me about a lot of these folks is the blame and “anger” (from the article). The buyer is the Prime Mover in every real estate transaction. Without the buyer finding the home s/he wants to buy and THEN going to the lender to get it funded there is no transaction. Which is why I assign roughly 65% of the blame in this whole fiasco to Reckless Buyers and the other 35% to Reckless Lenders. The buyers aren’t victims here – they’re just financial retards. So, if they want to walk away – ok, do it. But don’t try to feed me some bullshit line about how it’s ALL the bank’s fault, NONE of the buyer’s fault, and you’re so ANGRY at the banks. If you want to be angry, be angry at yourself for being a complete idiot.

Now, the folks who either haven’t bought or did buy but aren’t walking away… they have the right to be ANGRY at both parties.

[Author]

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