Thread about walking away…

[Doofrat]

If they find it is in their best interests, they should walk away. It’s non-recourse debt and the banks knew that when they wrote the loans. sarcasm on The banks of course factored in a margin to account for the possibility that some of the loans would go bad. sarcasm off 😉

[patientlywaiting]

I believe people are walking as we speak.

I personally know 3 families who are walking.

1) One family lost $50,000 when they sold their house in Mexico to try to keep the house in SD. Big mistake. They should have kept the Mexico house and walked on the SD house. They would be way ahead.

2) The other family took equity out to start a business which failed. They moved into the sister’s house.

3) Another woman took equity money out to support her lifestyle put her daughter through college. She moved in with her daughter and her boyfriend. This woman is 60 yo, near retirement.

4) Another family took money out for a business that failed. I don’t count them yet, because they are in bankruptcy trying to “save” the house. Big mistake in my opinion. They still think that prices will go up again soon. They will walk probably in late 2009 when prices sink further.

*

From Barron’s article. Notice the word “brazen”. And the permabulls said that people will eat Ramen everyday before letting their houses go.

http://online.barrons.com/article/SB120493962895621231.html?page=sp

A new phenomenon of widespread negative equity — homeowners owing more on their mortgage than the underlying property is worth — has wrought a sea change in borrower behavior. Borrowers, whether subprime or prime, financially stretched or flush with cash, are walking brazenly from their obligations in stunning numbers.

[patientlywaiting]

I believe people are walking as we speak.

I personally know 3 families who are walking.

1) One family lost $50,000 when they sold their house in Mexico to try to keep the house in SD. Big mistake. They should have kept the Mexico house and walked on the SD house. They would be way ahead.

2) The other family took equity out to start a business which failed. They moved into the sister’s house.

3) Another woman took equity money out to support her lifestyle put her daughter through college. She moved in with her daughter and her boyfriend. This woman is 60 yo, near retirement.

4) Another family took money out for a business that failed. I don’t count them yet, because they are in bankruptcy trying to “save” the house. Big mistake in my opinion. They still think that prices will go up again soon. They will walk probably in late 2009 when prices sink further.

*

From Barron’s article. Notice the word “brazen”. And the permabulls said that people will eat Ramen everyday before letting their houses go.

http://online.barrons.com/article/SB120493962895621231.html?page=sp

A new phenomenon of widespread negative equity — homeowners owing more on their mortgage than the underlying property is worth — has wrought a sea change in borrower behavior. Borrowers, whether subprime or prime, financially stretched or flush with cash, are walking brazenly from their obligations in stunning numbers.

[patientlywaiting]

I believe people are walking as we speak.

I personally know 3 families who are walking.

1) One family lost $50,000 when they sold their house in Mexico to try to keep the house in SD. Big mistake. They should have kept the Mexico house and walked on the SD house. They would be way ahead.

2) The other family took equity out to start a business which failed. They moved into the sister’s house.

3) Another woman took equity money out to support her lifestyle put her daughter through college. She moved in with her daughter and her boyfriend. This woman is 60 yo, near retirement.

4) Another family took money out for a business that failed. I don’t count them yet, because they are in bankruptcy trying to “save” the house. Big mistake in my opinion. They still think that prices will go up again soon. They will walk probably in late 2009 when prices sink further.

*

From Barron’s article. Notice the word “brazen”. And the permabulls said that people will eat Ramen everyday before letting their houses go.

http://online.barrons.com/article/SB120493962895621231.html?page=sp

A new phenomenon of widespread negative equity — homeowners owing more on their mortgage than the underlying property is worth — has wrought a sea change in borrower behavior. Borrowers, whether subprime or prime, financially stretched or flush with cash, are walking brazenly from their obligations in stunning numbers.

[patientlywaiting]

I believe people are walking as we speak.

I personally know 3 families who are walking.

1) One family lost $50,000 when they sold their house in Mexico to try to keep the house in SD. Big mistake. They should have kept the Mexico house and walked on the SD house. They would be way ahead.

2) The other family took equity out to start a business which failed. They moved into the sister’s house.

3) Another woman took equity money out to support her lifestyle put her daughter through college. She moved in with her daughter and her boyfriend. This woman is 60 yo, near retirement.

4) Another family took money out for a business that failed. I don’t count them yet, because they are in bankruptcy trying to “save” the house. Big mistake in my opinion. They still think that prices will go up again soon. They will walk probably in late 2009 when prices sink further.

*

From Barron’s article. Notice the word “brazen”. And the permabulls said that people will eat Ramen everyday before letting their houses go.

http://online.barrons.com/article/SB120493962895621231.html?page=sp

A new phenomenon of widespread negative equity — homeowners owing more on their mortgage than the underlying property is worth — has wrought a sea change in borrower behavior. Borrowers, whether subprime or prime, financially stretched or flush with cash, are walking brazenly from their obligations in stunning numbers.

[patientlywaiting]

I believe people are walking as we speak.

I personally know 3 families who are walking.

1) One family lost $50,000 when they sold their house in Mexico to try to keep the house in SD. Big mistake. They should have kept the Mexico house and walked on the SD house. They would be way ahead.

2) The other family took equity out to start a business which failed. They moved into the sister’s house.

3) Another woman took equity money out to support her lifestyle put her daughter through college. She moved in with her daughter and her boyfriend. This woman is 60 yo, near retirement.

4) Another family took money out for a business that failed. I don’t count them yet, because they are in bankruptcy trying to “save” the house. Big mistake in my opinion. They still think that prices will go up again soon. They will walk probably in late 2009 when prices sink further.

*

From Barron’s article. Notice the word “brazen”. And the permabulls said that people will eat Ramen everyday before letting their houses go.

http://online.barrons.com/article/SB120493962895621231.html?page=sp

A new phenomenon of widespread negative equity — homeowners owing more on their mortgage than the underlying property is worth — has wrought a sea change in borrower behavior. Borrowers, whether subprime or prime, financially stretched or flush with cash, are walking brazenly from their obligations in stunning numbers.

[peterb]

Why walk when you can be evicted?
Since one’s credit is going to be trashed either way, why walk when one can wait anywhere from 8 to 10 months to be evicted after they’ve quit paying the lender? That’s effectively free rent for that whole time. The county usually notifies the occupant at least 7 days before physical eviction takes place….more than enough time to get out of the house without incident. Seems like this would be the most cost effective thing to do if you really dont care about the debt and credit. And, quite often the new owner will even pay you to leave before the eviction so as to get into the property as early as possible.

[peterb]

Why walk when you can be evicted?
Since one’s credit is going to be trashed either way, why walk when one can wait anywhere from 8 to 10 months to be evicted after they’ve quit paying the lender? That’s effectively free rent for that whole time. The county usually notifies the occupant at least 7 days before physical eviction takes place….more than enough time to get out of the house without incident. Seems like this would be the most cost effective thing to do if you really dont care about the debt and credit. And, quite often the new owner will even pay you to leave before the eviction so as to get into the property as early as possible.

[peterb]

Why walk when you can be evicted?
Since one’s credit is going to be trashed either way, why walk when one can wait anywhere from 8 to 10 months to be evicted after they’ve quit paying the lender? That’s effectively free rent for that whole time. The county usually notifies the occupant at least 7 days before physical eviction takes place….more than enough time to get out of the house without incident. Seems like this would be the most cost effective thing to do if you really dont care about the debt and credit. And, quite often the new owner will even pay you to leave before the eviction so as to get into the property as early as possible.

[peterb]

Why walk when you can be evicted?
Since one’s credit is going to be trashed either way, why walk when one can wait anywhere from 8 to 10 months to be evicted after they’ve quit paying the lender? That’s effectively free rent for that whole time. The county usually notifies the occupant at least 7 days before physical eviction takes place….more than enough time to get out of the house without incident. Seems like this would be the most cost effective thing to do if you really dont care about the debt and credit. And, quite often the new owner will even pay you to leave before the eviction so as to get into the property as early as possible.

[peterb]

Why walk when you can be evicted?
Since one’s credit is going to be trashed either way, why walk when one can wait anywhere from 8 to 10 months to be evicted after they’ve quit paying the lender? That’s effectively free rent for that whole time. The county usually notifies the occupant at least 7 days before physical eviction takes place….more than enough time to get out of the house without incident. Seems like this would be the most cost effective thing to do if you really dont care about the debt and credit. And, quite often the new owner will even pay you to leave before the eviction so as to get into the property as early as possible.

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