When does it make financial sense to just dump your house???

[23109VC]

wow… even more great ideas.

First – the person who suggested I could just stop paying on the second…. I have been advised that by someone else. I did a loan mod that got my first loan modded successfully, but the bank that holds my second refused to budge. After recently taking a salary reduction at my job, and forwarding THAT documentation to my second, they agreed to drpo the rate on my second from 7.8% to 4% but only for a year. so they offered me what amounts to a $150 drop in monthly payments..

the first agreed to a reduction down to 4.8% permanently.

the bank that holds my second claimed they took no TARP money and don’t have to do any gov’t programs, and that is all they coudl do. I very articulately and politely – explained what you already mentioned – that given the current value of my home, the second mortgage is worthless. they can’t foreclose..and they would effectively get nothing if i stop paying.

I have my car insurance, home owners insurance, life insurance – and banking all trhough this company. USAA. they told me if I stop paying, and go the “discharge” route they will cancel all my policies. i’d have to get car ins, etc somewhere else.. not sure if they can really can my life ins as i have that as a 15 year contract..unless buried in that contract somwhere is a cluase that says they can terminate me for not keeping ohter USAA accounts in good standing…

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.

i hate to think that I would just walk on my 2nd, but it almost seems like that might be the wisest thing to do. my first + taxes is only $2000, which with my tax writeoff, would mean I’d be living in my house for less than it would cost to rent it…

[sd_t2]

Well if you plan to stop paying on it, you’ll probably want to start with moving your banking to a different bank.

They’ll probably help themselves to your checking account to make good on the payment you “forgot” to make…

[sd_t2]

Well if you plan to stop paying on it, you’ll probably want to start with moving your banking to a different bank.

They’ll probably help themselves to your checking account to make good on the payment you “forgot” to make…

[sd_t2]

Well if you plan to stop paying on it, you’ll probably want to start with moving your banking to a different bank.

They’ll probably help themselves to your checking account to make good on the payment you “forgot” to make…

[sd_t2]

Well if you plan to stop paying on it, you’ll probably want to start with moving your banking to a different bank.

They’ll probably help themselves to your checking account to make good on the payment you “forgot” to make…

[sd_t2]

Well if you plan to stop paying on it, you’ll probably want to start with moving your banking to a different bank.

They’ll probably help themselves to your checking account to make good on the payment you “forgot” to make…

[analyst]

[quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.

[analyst]

[quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.

[analyst]

[quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.

[analyst]

[quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.

[analyst]

[quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.

[CricketOnTheHearth]

Re Taiwan and USAA:

SD Realtor on November 17, 2009 – 4:48pm.

Cricket did you notice…

By “he” do you mean Mark Hanson? I dearly hope our Gov’t wouldn’t throw Taiwan into China’s dog dish in exchange for a few more months of buying our treasuries, but I wouldn’t put it past them. If they do, they can just shut up about “freedom” and “democracy” forever as far as I’m concerned. It’s already shameful the way corporate America ditched Taiwan in order to provide us with cheap(er) toys and poisoned cat food.

Karl Denninger really tells off China in this little epistle. Not sure how right Karl is but it’s kind of entertaining.

. . .

VC, I’m really sorry to hear it is USAA being so stiff with you on the 2nd. I’ve had them for my insurance for decades and been pretty happy with them. Very disappointing to hear them acting like that.

I agree with the other suggestion to start moving your banking to another bank (I’d recommend Union Bank or a solid credit union if you can get into one). It’s possible that as USAA sees your money quietly walking out of their accounts, they might relent.

[CricketOnTheHearth]

Re Taiwan and USAA:

SD Realtor on November 17, 2009 – 4:48pm.

Cricket did you notice…

By “he” do you mean Mark Hanson? I dearly hope our Gov’t wouldn’t throw Taiwan into China’s dog dish in exchange for a few more months of buying our treasuries, but I wouldn’t put it past them. If they do, they can just shut up about “freedom” and “democracy” forever as far as I’m concerned. It’s already shameful the way corporate America ditched Taiwan in order to provide us with cheap(er) toys and poisoned cat food.

Karl Denninger really tells off China in this little epistle. Not sure how right Karl is but it’s kind of entertaining.

. . .

VC, I’m really sorry to hear it is USAA being so stiff with you on the 2nd. I’ve had them for my insurance for decades and been pretty happy with them. Very disappointing to hear them acting like that.

I agree with the other suggestion to start moving your banking to another bank (I’d recommend Union Bank or a solid credit union if you can get into one). It’s possible that as USAA sees your money quietly walking out of their accounts, they might relent.

[CricketOnTheHearth]

Re Taiwan and USAA:

SD Realtor on November 17, 2009 – 4:48pm.

Cricket did you notice…

By “he” do you mean Mark Hanson? I dearly hope our Gov’t wouldn’t throw Taiwan into China’s dog dish in exchange for a few more months of buying our treasuries, but I wouldn’t put it past them. If they do, they can just shut up about “freedom” and “democracy” forever as far as I’m concerned. It’s already shameful the way corporate America ditched Taiwan in order to provide us with cheap(er) toys and poisoned cat food.

Karl Denninger really tells off China in this little epistle. Not sure how right Karl is but it’s kind of entertaining.

. . .

VC, I’m really sorry to hear it is USAA being so stiff with you on the 2nd. I’ve had them for my insurance for decades and been pretty happy with them. Very disappointing to hear them acting like that.

I agree with the other suggestion to start moving your banking to another bank (I’d recommend Union Bank or a solid credit union if you can get into one). It’s possible that as USAA sees your money quietly walking out of their accounts, they might relent.

[CricketOnTheHearth]

Re Taiwan and USAA:

SD Realtor on November 17, 2009 – 4:48pm.

Cricket did you notice…

By “he” do you mean Mark Hanson? I dearly hope our Gov’t wouldn’t throw Taiwan into China’s dog dish in exchange for a few more months of buying our treasuries, but I wouldn’t put it past them. If they do, they can just shut up about “freedom” and “democracy” forever as far as I’m concerned. It’s already shameful the way corporate America ditched Taiwan in order to provide us with cheap(er) toys and poisoned cat food.

Karl Denninger really tells off China in this little epistle. Not sure how right Karl is but it’s kind of entertaining.

. . .

VC, I’m really sorry to hear it is USAA being so stiff with you on the 2nd. I’ve had them for my insurance for decades and been pretty happy with them. Very disappointing to hear them acting like that.

I agree with the other suggestion to start moving your banking to another bank (I’d recommend Union Bank or a solid credit union if you can get into one). It’s possible that as USAA sees your money quietly walking out of their accounts, they might relent.

[Author]

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