The Upside-Down family: a scenario

[sdnativeson]

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[FormerOwner]

I’ve heard from a couple of friends that people are starting to “get smart” about this whole loan debacle. They put their house on the market for what it would take to pay off the loan(s) and if it doesn’t sell after a few months, they stop making payments and live rent free until they are forced to move out – at least 6 or 7 months. They are able to save $$ on living expenses during those months – I’m assuming they shut off their sprinker systems in addition to not paying their mortgage. From what I understand, “purchase” loans are non-recourse; the only thing that will happen to these people by walking away is bad credit. However, with refinance loans banks have recourse to get a judgement against the borrower to compensate the bank for their loss. For people that didn’t refinance and are underwater, Cramer is probably right that they should just walk away.

For those that refinanced, things are much worse in my opinion and those people probably should look into filing for bankruptcy. It would be up to the lenders to decide whether it’s worth going after them to get the $$ back.

[FormerOwner]

I’ve heard from a couple of friends that people are starting to “get smart” about this whole loan debacle. They put their house on the market for what it would take to pay off the loan(s) and if it doesn’t sell after a few months, they stop making payments and live rent free until they are forced to move out – at least 6 or 7 months. They are able to save $$ on living expenses during those months – I’m assuming they shut off their sprinker systems in addition to not paying their mortgage. From what I understand, “purchase” loans are non-recourse; the only thing that will happen to these people by walking away is bad credit. However, with refinance loans banks have recourse to get a judgement against the borrower to compensate the bank for their loss. For people that didn’t refinance and are underwater, Cramer is probably right that they should just walk away.

For those that refinanced, things are much worse in my opinion and those people probably should look into filing for bankruptcy. It would be up to the lenders to decide whether it’s worth going after them to get the $$ back.

[FormerOwner]

I’ve heard from a couple of friends that people are starting to “get smart” about this whole loan debacle. They put their house on the market for what it would take to pay off the loan(s) and if it doesn’t sell after a few months, they stop making payments and live rent free until they are forced to move out – at least 6 or 7 months. They are able to save $$ on living expenses during those months – I’m assuming they shut off their sprinker systems in addition to not paying their mortgage. From what I understand, “purchase” loans are non-recourse; the only thing that will happen to these people by walking away is bad credit. However, with refinance loans banks have recourse to get a judgement against the borrower to compensate the bank for their loss. For people that didn’t refinance and are underwater, Cramer is probably right that they should just walk away.

For those that refinanced, things are much worse in my opinion and those people probably should look into filing for bankruptcy. It would be up to the lenders to decide whether it’s worth going after them to get the $$ back.

[Allan from Fallbrook]

Speaking of Murrieta: I was at the Chick’s Sporting Goods off of Murrieta Hot Springs road today. As I was waiting to get back on MHS to turn onto the 215 and head back to Fallbrook, I happened to look over at a car wash at the light. There had to have been at least two dozen new cars there getting washed, and nice stuff: Caddie Escalades, BMWs, Lexi, etc. I saw a Range Rover, a couple of big GMC SUVs and several nice German sports sedans in the Chick’s parking lot as well.

I look at these cars and the Stepford Wives driving them and keep thinking: HELOC. This is a middle class bedroom community fer God’s sake! Where in the hell are these people getting the money for these cars?

[Allan from Fallbrook]

Speaking of Murrieta: I was at the Chick’s Sporting Goods off of Murrieta Hot Springs road today. As I was waiting to get back on MHS to turn onto the 215 and head back to Fallbrook, I happened to look over at a car wash at the light. There had to have been at least two dozen new cars there getting washed, and nice stuff: Caddie Escalades, BMWs, Lexi, etc. I saw a Range Rover, a couple of big GMC SUVs and several nice German sports sedans in the Chick’s parking lot as well.

I look at these cars and the Stepford Wives driving them and keep thinking: HELOC. This is a middle class bedroom community fer God’s sake! Where in the hell are these people getting the money for these cars?

[Allan from Fallbrook]

Speaking of Murrieta: I was at the Chick’s Sporting Goods off of Murrieta Hot Springs road today. As I was waiting to get back on MHS to turn onto the 215 and head back to Fallbrook, I happened to look over at a car wash at the light. There had to have been at least two dozen new cars there getting washed, and nice stuff: Caddie Escalades, BMWs, Lexi, etc. I saw a Range Rover, a couple of big GMC SUVs and several nice German sports sedans in the Chick’s parking lot as well.

I look at these cars and the Stepford Wives driving them and keep thinking: HELOC. This is a middle class bedroom community fer God’s sake! Where in the hell are these people getting the money for these cars?

[temeculaguy]

Note to self, go to chicks sporting goods and car wash to check out hot wives.

[temeculaguy]

Note to self, go to chicks sporting goods and car wash to check out hot wives.

[temeculaguy]

Note to self, go to chicks sporting goods and car wash to check out hot wives.

[Allan from Fallbrook]

TG: Dude. I am not kidding on that one. I think the majority of these women enjoyed a career in exotic dancing prior to moving up to the Good Life in Temecula and Murrieta.

You can literally get whiplash at Pop Warner games in Temecula and Murrieta. Thank God for sunglasses!

[Allan from Fallbrook]

TG: Dude. I am not kidding on that one. I think the majority of these women enjoyed a career in exotic dancing prior to moving up to the Good Life in Temecula and Murrieta.

You can literally get whiplash at Pop Warner games in Temecula and Murrieta. Thank God for sunglasses!

[Allan from Fallbrook]

TG: Dude. I am not kidding on that one. I think the majority of these women enjoyed a career in exotic dancing prior to moving up to the Good Life in Temecula and Murrieta.

You can literally get whiplash at Pop Warner games in Temecula and Murrieta. Thank God for sunglasses!

[temeculaguy]

Alan, I hear you brother, but lets keep this on the down low. As a 40 y.o. divorced guy always looking for his next ex wife, I don’t need busloads of dudes cutting in on my action. Repeat after me, it’s too hot, it’s too far away, there’s too much traffic, lather, rinse, repeat.

Wanna really put your sunglasses to the test, hit the wineries on a Saturday when the desperate housewives of orange county pour into town, those O.C. plastic surgeons have mad skills and have obviously been on the receiving end of some serious heloc money.

[temeculaguy]

Alan, I hear you brother, but lets keep this on the down low. As a 40 y.o. divorced guy always looking for his next ex wife, I don’t need busloads of dudes cutting in on my action. Repeat after me, it’s too hot, it’s too far away, there’s too much traffic, lather, rinse, repeat.

Wanna really put your sunglasses to the test, hit the wineries on a Saturday when the desperate housewives of orange county pour into town, those O.C. plastic surgeons have mad skills and have obviously been on the receiving end of some serious heloc money.

[Author]

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