Viral Nature of Walking Away

[briansd1]

You’re correct UCGal.

But generally, the riskiest, most sophisticated products (pick a pay, initial teaser rates, etc..) were sold to the lowest income, least educated people who fronted the lowest down-payments.

Any reasonable manager would expect high future default rates.

The bankers were blinded by the immediate money to be made and didn’t worry about the future. Regulators enabled and encouraged this lopsided underwriting model.

[briansd1]

Interesting video on PBS.

Josh Bartlet is so far going on 3 years of payment-free living.

http://www.pbs.org/newshour/bb/business/jan-june10/mortgage_04-20.html

I’m thinking that next year, walking away will even be more common place. If the Mortgage Bankers Association can do it, why not Joe Six-Pack?

KEVIN JARRETT: During that process, I also lost my family. My — I went through a divorce. My wife and my daughter now live up north.

I mean, I have literally lost everything. But, right now, I’m just trying to — I’m just trying to do what’s right, you know. And I’m in a bad spot, in a bad situation, but it has nothing to do with a business decision, where, you know, I’m walking away because my house is upside-down.

So much for richer or for poorer. The wife certainly walked away from a bad financial situation.

[briansd1]

Interesting video on PBS.

Josh Bartlet is so far going on 3 years of payment-free living.

http://www.pbs.org/newshour/bb/business/jan-june10/mortgage_04-20.html

I’m thinking that next year, walking away will even be more common place. If the Mortgage Bankers Association can do it, why not Joe Six-Pack?

KEVIN JARRETT: During that process, I also lost my family. My — I went through a divorce. My wife and my daughter now live up north.

I mean, I have literally lost everything. But, right now, I’m just trying to — I’m just trying to do what’s right, you know. And I’m in a bad spot, in a bad situation, but it has nothing to do with a business decision, where, you know, I’m walking away because my house is upside-down.

So much for richer or for poorer. The wife certainly walked away from a bad financial situation.

[briansd1]

Interesting video on PBS.

Josh Bartlet is so far going on 3 years of payment-free living.

http://www.pbs.org/newshour/bb/business/jan-june10/mortgage_04-20.html

I’m thinking that next year, walking away will even be more common place. If the Mortgage Bankers Association can do it, why not Joe Six-Pack?

KEVIN JARRETT: During that process, I also lost my family. My — I went through a divorce. My wife and my daughter now live up north.

I mean, I have literally lost everything. But, right now, I’m just trying to — I’m just trying to do what’s right, you know. And I’m in a bad spot, in a bad situation, but it has nothing to do with a business decision, where, you know, I’m walking away because my house is upside-down.

So much for richer or for poorer. The wife certainly walked away from a bad financial situation.

[briansd1]

Interesting video on PBS.

Josh Bartlet is so far going on 3 years of payment-free living.

http://www.pbs.org/newshour/bb/business/jan-june10/mortgage_04-20.html

I’m thinking that next year, walking away will even be more common place. If the Mortgage Bankers Association can do it, why not Joe Six-Pack?

KEVIN JARRETT: During that process, I also lost my family. My — I went through a divorce. My wife and my daughter now live up north.

I mean, I have literally lost everything. But, right now, I’m just trying to — I’m just trying to do what’s right, you know. And I’m in a bad spot, in a bad situation, but it has nothing to do with a business decision, where, you know, I’m walking away because my house is upside-down.

So much for richer or for poorer. The wife certainly walked away from a bad financial situation.

[briansd1]

Interesting video on PBS.

Josh Bartlet is so far going on 3 years of payment-free living.

http://www.pbs.org/newshour/bb/business/jan-june10/mortgage_04-20.html

I’m thinking that next year, walking away will even be more common place. If the Mortgage Bankers Association can do it, why not Joe Six-Pack?

KEVIN JARRETT: During that process, I also lost my family. My — I went through a divorce. My wife and my daughter now live up north.

I mean, I have literally lost everything. But, right now, I’m just trying to — I’m just trying to do what’s right, you know. And I’m in a bad spot, in a bad situation, but it has nothing to do with a business decision, where, you know, I’m walking away because my house is upside-down.

So much for richer or for poorer. The wife certainly walked away from a bad financial situation.

[jpinpb]

Good video. Thanks for posting. Pretty much sums it up.

[jpinpb]

Good video. Thanks for posting. Pretty much sums it up.

[jpinpb]

Good video. Thanks for posting. Pretty much sums it up.

[jpinpb]

Good video. Thanks for posting. Pretty much sums it up.

[jpinpb]

Good video. Thanks for posting. Pretty much sums it up.

[bearishgurl]

Yes, I also watched the video and understand the homeowner’s situations completely.

As to “Josh,” he claims he made $20K in payments and put $30K down and his condo is now worth $45K (if I remember right). At the time of taping of the segment, he had been “squatting” about 28 mos after trying to get a principal reduction from his lender. He stated that if he moved out the next day, the lender “got theirs” (made more $$ off him than its current market value). I can understand this way of thinking. Josh is young enough to rent awhile and recover from this lesson.

However, “Kevin” and no doubt his “defecting spouse” (brian, she could have rocketed to the moon last month, but SHE SIGNED the I/O note along with Kevin), are not. Their bad decisions will follow them into retirement and severely curtail their choices for years to come.

[bearishgurl]

Yes, I also watched the video and understand the homeowner’s situations completely.

As to “Josh,” he claims he made $20K in payments and put $30K down and his condo is now worth $45K (if I remember right). At the time of taping of the segment, he had been “squatting” about 28 mos after trying to get a principal reduction from his lender. He stated that if he moved out the next day, the lender “got theirs” (made more $$ off him than its current market value). I can understand this way of thinking. Josh is young enough to rent awhile and recover from this lesson.

However, “Kevin” and no doubt his “defecting spouse” (brian, she could have rocketed to the moon last month, but SHE SIGNED the I/O note along with Kevin), are not. Their bad decisions will follow them into retirement and severely curtail their choices for years to come.

[bearishgurl]

Yes, I also watched the video and understand the homeowner’s situations completely.

As to “Josh,” he claims he made $20K in payments and put $30K down and his condo is now worth $45K (if I remember right). At the time of taping of the segment, he had been “squatting” about 28 mos after trying to get a principal reduction from his lender. He stated that if he moved out the next day, the lender “got theirs” (made more $$ off him than its current market value). I can understand this way of thinking. Josh is young enough to rent awhile and recover from this lesson.

However, “Kevin” and no doubt his “defecting spouse” (brian, she could have rocketed to the moon last month, but SHE SIGNED the I/O note along with Kevin), are not. Their bad decisions will follow them into retirement and severely curtail their choices for years to come.

[bearishgurl]

Yes, I also watched the video and understand the homeowner’s situations completely.

As to “Josh,” he claims he made $20K in payments and put $30K down and his condo is now worth $45K (if I remember right). At the time of taping of the segment, he had been “squatting” about 28 mos after trying to get a principal reduction from his lender. He stated that if he moved out the next day, the lender “got theirs” (made more $$ off him than its current market value). I can understand this way of thinking. Josh is young enough to rent awhile and recover from this lesson.

However, “Kevin” and no doubt his “defecting spouse” (brian, she could have rocketed to the moon last month, but SHE SIGNED the I/O note along with Kevin), are not. Their bad decisions will follow them into retirement and severely curtail their choices for years to come.

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