Viral Nature of Walking Away

[briansd1]

It’s becoming more and more mainstream, just like I predicted it would.

I remember during the boom, the bulls were saying that people will eat Ramen noodles and cut back all expense before they default on their mortgages.

I was thinking fat chance. In fact, I know a family that is already planning on defaulting when their loan resets. They just bought a brand new Cadillac Escalade.

Borrowers Refuse to Pay Billions in Home Equity Loans

Debts Rise, and Go Unpaid, as Bust Erodes Home Equity.

The delinquency rate on home equity loans is higher than all other types of consumer loans, including auto loans, boat loans, personal loans and even bank cards like Visa and MasterCard, according to the American Bankers Association.

[carlsbadworker]

Strategic default is a dagger at the heart of mortgage underwriting standard. Because all they looked at was one’s ability to pay not the willingness to pay. The failure to distinguish between the two is a time bomb hidden under all the recent FHA lending to borrowers using 8K credit as DP.

[carlsbadworker]

Strategic default is a dagger at the heart of mortgage underwriting standard. Because all they looked at was one’s ability to pay not the willingness to pay. The failure to distinguish between the two is a time bomb hidden under all the recent FHA lending to borrowers using 8K credit as DP.

[carlsbadworker]

Strategic default is a dagger at the heart of mortgage underwriting standard. Because all they looked at was one’s ability to pay not the willingness to pay. The failure to distinguish between the two is a time bomb hidden under all the recent FHA lending to borrowers using 8K credit as DP.

[carlsbadworker]

Strategic default is a dagger at the heart of mortgage underwriting standard. Because all they looked at was one’s ability to pay not the willingness to pay. The failure to distinguish between the two is a time bomb hidden under all the recent FHA lending to borrowers using 8K credit as DP.

[carlsbadworker]

Strategic default is a dagger at the heart of mortgage underwriting standard. Because all they looked at was one’s ability to pay not the willingness to pay. The failure to distinguish between the two is a time bomb hidden under all the recent FHA lending to borrowers using 8K credit as DP.

[sreeb]

I take the view that the non recourse nature of the loan is a loan feature just like all the other fine print. Fine print that the bank will not hesitate to take advantage of if it is to their advantage. Handing over the keys and walking is a business decision, not a moral one.

I view staying, forcing foreclosure, and stalling the process while not paying as a clear ethical problem.

I have seen some of loan packages sold to subprime borrowers and find it hard to be too sympathetic to the lenders. 0% down on an adjustable at 7% above the index? How could that ever work out well for the buyer? And how could it ever work out for the holder of 2nd which covered the last 20%.

[sreeb]

I take the view that the non recourse nature of the loan is a loan feature just like all the other fine print. Fine print that the bank will not hesitate to take advantage of if it is to their advantage. Handing over the keys and walking is a business decision, not a moral one.

I view staying, forcing foreclosure, and stalling the process while not paying as a clear ethical problem.

I have seen some of loan packages sold to subprime borrowers and find it hard to be too sympathetic to the lenders. 0% down on an adjustable at 7% above the index? How could that ever work out well for the buyer? And how could it ever work out for the holder of 2nd which covered the last 20%.

[sreeb]

I take the view that the non recourse nature of the loan is a loan feature just like all the other fine print. Fine print that the bank will not hesitate to take advantage of if it is to their advantage. Handing over the keys and walking is a business decision, not a moral one.

I view staying, forcing foreclosure, and stalling the process while not paying as a clear ethical problem.

I have seen some of loan packages sold to subprime borrowers and find it hard to be too sympathetic to the lenders. 0% down on an adjustable at 7% above the index? How could that ever work out well for the buyer? And how could it ever work out for the holder of 2nd which covered the last 20%.

[sreeb]

I take the view that the non recourse nature of the loan is a loan feature just like all the other fine print. Fine print that the bank will not hesitate to take advantage of if it is to their advantage. Handing over the keys and walking is a business decision, not a moral one.

I view staying, forcing foreclosure, and stalling the process while not paying as a clear ethical problem.

I have seen some of loan packages sold to subprime borrowers and find it hard to be too sympathetic to the lenders. 0% down on an adjustable at 7% above the index? How could that ever work out well for the buyer? And how could it ever work out for the holder of 2nd which covered the last 20%.

[sreeb]

I take the view that the non recourse nature of the loan is a loan feature just like all the other fine print. Fine print that the bank will not hesitate to take advantage of if it is to their advantage. Handing over the keys and walking is a business decision, not a moral one.

I view staying, forcing foreclosure, and stalling the process while not paying as a clear ethical problem.

I have seen some of loan packages sold to subprime borrowers and find it hard to be too sympathetic to the lenders. 0% down on an adjustable at 7% above the index? How could that ever work out well for the buyer? And how could it ever work out for the holder of 2nd which covered the last 20%.

[kev374]

While I don’t think there is anything wrong with strategically defaulting I do think the person who defaults should not be able to buy another home for a VERY long time. Unfortunately it looks like these defaulters can get another home under government programs within 2 yrs.

[kev374]

While I don’t think there is anything wrong with strategically defaulting I do think the person who defaults should not be able to buy another home for a VERY long time. Unfortunately it looks like these defaulters can get another home under government programs within 2 yrs.

[kev374]

While I don’t think there is anything wrong with strategically defaulting I do think the person who defaults should not be able to buy another home for a VERY long time. Unfortunately it looks like these defaulters can get another home under government programs within 2 yrs.

[kev374]

While I don’t think there is anything wrong with strategically defaulting I do think the person who defaults should not be able to buy another home for a VERY long time. Unfortunately it looks like these defaulters can get another home under government programs within 2 yrs.

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