The new smart financial move is walking away

[Arraya]

[quote=CA renter] And now, the govt is painting them as “victims” so they don’t even have to feel guilty for walking away.
[/quote]

Actually, it’s the opposite.

People are acting against their own economic self-interest by continuing to pay off houses where they may not have any equity for decades,” he said. “They’re throwing away good money after bad.”
Shame, guilt and fear stop many homeowners from reneging on their mortgages, he said. The government and big banks actively cultivate those emotional constraints because the economic consequences of a large-scale walkaway phenomenon could be dire, he said.
Strategic defaults have widespread repercussions. Ongoing foreclosures destabilize the housing market because the homes are sold at bargain prices. They also undermine the entire economy because banks must eat huge losses and homeowners rein in spending as their own homes lose value. Empty homes hurt neighborhoods and attract blight. And walkaways may inspire copycats – people who’ve seen their neighbors deliberately default feel more emboldened to do so themselves.
California is a nonrecourse state, where lenders cannot pursue homeowners for the unpaid balance on their first mortgage.

Read more: http://www.sfgate.com/cgi-bin/article.cg…

[briansd1]

[quote=CA renter]
Want to know the funniest part? They are doing it all over again with the $8,000 tax credit and 3.5% FHA loans (and other low-down mortgages).
[/quote]

CA renter, you are very correct.

Unless, the system is allowed to get back to equilibrium, there will always be distress.

Housing is now living on welfare and you all know that happens when people who depend in welfare. They can’t get off the subsidies. Eventually, the government won’t be able to handle it anymore and the whole thing will come crashing down, if that continues.

[briansd1]

[quote=CA renter]
Want to know the funniest part? They are doing it all over again with the $8,000 tax credit and 3.5% FHA loans (and other low-down mortgages).
[/quote]

CA renter, you are very correct.

Unless, the system is allowed to get back to equilibrium, there will always be distress.

Housing is now living on welfare and you all know that happens when people who depend in welfare. They can’t get off the subsidies. Eventually, the government won’t be able to handle it anymore and the whole thing will come crashing down, if that continues.

[briansd1]

[quote=CA renter]
Want to know the funniest part? They are doing it all over again with the $8,000 tax credit and 3.5% FHA loans (and other low-down mortgages).
[/quote]

CA renter, you are very correct.

Unless, the system is allowed to get back to equilibrium, there will always be distress.

Housing is now living on welfare and you all know that happens when people who depend in welfare. They can’t get off the subsidies. Eventually, the government won’t be able to handle it anymore and the whole thing will come crashing down, if that continues.

[briansd1]

[quote=CA renter]
Want to know the funniest part? They are doing it all over again with the $8,000 tax credit and 3.5% FHA loans (and other low-down mortgages).
[/quote]

CA renter, you are very correct.

Unless, the system is allowed to get back to equilibrium, there will always be distress.

Housing is now living on welfare and you all know that happens when people who depend in welfare. They can’t get off the subsidies. Eventually, the government won’t be able to handle it anymore and the whole thing will come crashing down, if that continues.

[briansd1]

[quote=CA renter]
Want to know the funniest part? They are doing it all over again with the $8,000 tax credit and 3.5% FHA loans (and other low-down mortgages).
[/quote]

CA renter, you are very correct.

Unless, the system is allowed to get back to equilibrium, there will always be distress.

Housing is now living on welfare and you all know that happens when people who depend in welfare. They can’t get off the subsidies. Eventually, the government won’t be able to handle it anymore and the whole thing will come crashing down, if that continues.

[davelj]

[quote=CA renter] Who in their right mind wouldn’t take that offer? [/quote]

So tell us your story. I’m assuming you feel that you’re in your “right mind,” so tell us about how you took advantage of this giveaway. Enquiring minds want to know.

[davelj]

[quote=CA renter] Who in their right mind wouldn’t take that offer? [/quote]

So tell us your story. I’m assuming you feel that you’re in your “right mind,” so tell us about how you took advantage of this giveaway. Enquiring minds want to know.

[davelj]

[quote=CA renter] Who in their right mind wouldn’t take that offer? [/quote]

So tell us your story. I’m assuming you feel that you’re in your “right mind,” so tell us about how you took advantage of this giveaway. Enquiring minds want to know.

[davelj]

[quote=CA renter] Who in their right mind wouldn’t take that offer? [/quote]

So tell us your story. I’m assuming you feel that you’re in your “right mind,” so tell us about how you took advantage of this giveaway. Enquiring minds want to know.

[davelj]

[quote=CA renter] Who in their right mind wouldn’t take that offer? [/quote]

So tell us your story. I’m assuming you feel that you’re in your “right mind,” so tell us about how you took advantage of this giveaway. Enquiring minds want to know.

[SD Realtor]

No Desmond I think you could not be more incorrect. Actually the folks who haven’t bought are mad as hell because those that did buy are getting away scott free so to speak. Others that did buy are getting mods. Others may even see REDUCTIONS in loan balances. Funny, even some of the most prolific bearish people who post here bought and are in foreclosure. The bottom line is personal responsibility. I am not saying don’t walk away. I am also not saying that the real estate industry, the fed, wall street, the ratings agency, etc did not feed the fire. However HE WHO SIGNED THE LOAN DOCS IS AND WAS RESPONSIBLE. Because if you never signed those docs, you would have never been in trouble. Yet I guess it is always more convenient to blame others. We all were living in the same time and under those same pressures to buy and not all of us did.

[SD Realtor]

No Desmond I think you could not be more incorrect. Actually the folks who haven’t bought are mad as hell because those that did buy are getting away scott free so to speak. Others that did buy are getting mods. Others may even see REDUCTIONS in loan balances. Funny, even some of the most prolific bearish people who post here bought and are in foreclosure. The bottom line is personal responsibility. I am not saying don’t walk away. I am also not saying that the real estate industry, the fed, wall street, the ratings agency, etc did not feed the fire. However HE WHO SIGNED THE LOAN DOCS IS AND WAS RESPONSIBLE. Because if you never signed those docs, you would have never been in trouble. Yet I guess it is always more convenient to blame others. We all were living in the same time and under those same pressures to buy and not all of us did.

[SD Realtor]

No Desmond I think you could not be more incorrect. Actually the folks who haven’t bought are mad as hell because those that did buy are getting away scott free so to speak. Others that did buy are getting mods. Others may even see REDUCTIONS in loan balances. Funny, even some of the most prolific bearish people who post here bought and are in foreclosure. The bottom line is personal responsibility. I am not saying don’t walk away. I am also not saying that the real estate industry, the fed, wall street, the ratings agency, etc did not feed the fire. However HE WHO SIGNED THE LOAN DOCS IS AND WAS RESPONSIBLE. Because if you never signed those docs, you would have never been in trouble. Yet I guess it is always more convenient to blame others. We all were living in the same time and under those same pressures to buy and not all of us did.

[SD Realtor]

No Desmond I think you could not be more incorrect. Actually the folks who haven’t bought are mad as hell because those that did buy are getting away scott free so to speak. Others that did buy are getting mods. Others may even see REDUCTIONS in loan balances. Funny, even some of the most prolific bearish people who post here bought and are in foreclosure. The bottom line is personal responsibility. I am not saying don’t walk away. I am also not saying that the real estate industry, the fed, wall street, the ratings agency, etc did not feed the fire. However HE WHO SIGNED THE LOAN DOCS IS AND WAS RESPONSIBLE. Because if you never signed those docs, you would have never been in trouble. Yet I guess it is always more convenient to blame others. We all were living in the same time and under those same pressures to buy and not all of us did.

[Author]

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