While not a perfect solution, the best way to avoid foreclosure . . .

[Bugs]

A lot of people will allow everything else to go before they let the house go. I think a lot of people who lose their homes do so because they literally have no other optiions.

[Bugs]

A lot of people will allow everything else to go before they let the house go. I think a lot of people who lose their homes do so because they literally have no other optiions.

[cr]

You’re right bobby, it was a feeble attempt at humor, though it is still good advice for prospective buyers to heed to avoid foreclosure.

If they’re facing it, there’s probably not a lot they can do as I would venture to say most people in it are already stretched to the max financially on payments before they go up.

[cr]

You’re right bobby, it was a feeble attempt at humor, though it is still good advice for prospective buyers to heed to avoid foreclosure.

If they’re facing it, there’s probably not a lot they can do as I would venture to say most people in it are already stretched to the max financially on payments before they go up.

[luchabee]

Actually, humor, if any, was a collateral intent.

My main point really is that some people will fall into foreclosure that don’t have to. A lot of people are so lazy they’d never consider working harder to avoid this; They will just let it happen to them, thinking they were screwed by the mortgage company. Yes, they were. However, they should take some responsiblity and get another job or a better one.

Will many people do this? Nope. However, if I had a friend in this situation, I’d tell ’em that working 9-5 ain’t going to cut it and to get another job or two. Again, this will not work for many people who have no chance at a recovery, but it is the only advice we could give anyone we knew in this predicament who have a chance at saving their homes.

[luchabee]

Actually, humor, if any, was a collateral intent.

My main point really is that some people will fall into foreclosure that don’t have to. A lot of people are so lazy they’d never consider working harder to avoid this; They will just let it happen to them, thinking they were screwed by the mortgage company. Yes, they were. However, they should take some responsiblity and get another job or a better one.

Will many people do this? Nope. However, if I had a friend in this situation, I’d tell ’em that working 9-5 ain’t going to cut it and to get another job or two. Again, this will not work for many people who have no chance at a recovery, but it is the only advice we could give anyone we knew in this predicament who have a chance at saving their homes.

[PerryChase]

luchabee, are you working for a bank?

If I bought at the peak and my house went down 30% and I had no equity, I’d walk, no matter what financial situation I were in. If I have equity and want to protect it, that’s another story altogether.

Like I said, walking is an option provided by the loan agreement and is no indication of financial “responsibility.”

The financially responsible thing to do is walk, rent, then buy another house when prices come down. It’s possible to plan an early, orderly departure rather than wait for the Marshall to come and evict you in front of all the neighbors.

Working three jobs to keep a facade seem to me like the irresponsible thing to do. All your money goes to the bank and you have no time for yourself or your family.

Wow, this is kinda like Iraq now that I think about it. 😉

[PerryChase]

luchabee, are you working for a bank?

If I bought at the peak and my house went down 30% and I had no equity, I’d walk, no matter what financial situation I were in. If I have equity and want to protect it, that’s another story altogether.

Like I said, walking is an option provided by the loan agreement and is no indication of financial “responsibility.”

The financially responsible thing to do is walk, rent, then buy another house when prices come down. It’s possible to plan an early, orderly departure rather than wait for the Marshall to come and evict you in front of all the neighbors.

Working three jobs to keep a facade seem to me like the irresponsible thing to do. All your money goes to the bank and you have no time for yourself or your family.

Wow, this is kinda like Iraq now that I think about it. 😉

[simonbart]

Perfect opportunity for the kids to learn from the school of hard knocks.

Put them to work at Starbucks or Vons as an afterschool job and make them contribute to the family income. This happens all the time overseas and it never hurt anyone. Builds character and they’ll never repeat their parents mistakes.

There is no reason why a kid can spend all their money on crap while the parents stress over living expenses.

I’m sure this will get a few bites.

[simonbart]

Perfect opportunity for the kids to learn from the school of hard knocks.

Put them to work at Starbucks or Vons as an afterschool job and make them contribute to the family income. This happens all the time overseas and it never hurt anyone. Builds character and they’ll never repeat their parents mistakes.

There is no reason why a kid can spend all their money on crap while the parents stress over living expenses.

I’m sure this will get a few bites.

[HLS]

There is a price to pay.
Generally a purchase loan is non recourse debt.
The property is security for the loan, without recourse.

If you have refinanced, whether you took out cash OR NOT, it is usually recourse debt.
You can get a deficiency judgment for what the lender loses, which is worse than a short sale and getting a 1099.
With a 1099 you only owe income tax on the amount.

With a DJ, you could owe the entire amount.

A foreclosure will be on credit report for 7 years, and score will get whacked.

[HLS]

There is a price to pay.
Generally a purchase loan is non recourse debt.
The property is security for the loan, without recourse.

If you have refinanced, whether you took out cash OR NOT, it is usually recourse debt.
You can get a deficiency judgment for what the lender loses, which is worse than a short sale and getting a 1099.
With a 1099 you only owe income tax on the amount.

With a DJ, you could owe the entire amount.

A foreclosure will be on credit report for 7 years, and score will get whacked.

[bob007]

in the past it was hard to walk away from a home because you put a 20% down payment. Now it is a lot easier because your home was purchased 0% down.

[bob007]

in the past it was hard to walk away from a home because you put a 20% down payment. Now it is a lot easier because your home was purchased 0% down.

[anxvariety]

I think lunchabee is an agent provocateur. It would not be good to honor the banks since a 30 year loan is similar to life imprisonment or throwing sandbags in your backpack, and yeah like someone else said – companies borrow and walk away so they don’t lose their own… interest rates are based on a risk model takes into account foreclosure risk(even banks can’t win all the time! Think about it, your payment was 95%+ interest, so even if you’ve been paying for 5 years, you’re going to have almost no equity making it a short sale anyways, but the banks in many cases will be able to cover the gap, and they probably even have insurance for it. Now if you borrowed the money from your parents or something then yeah pay it back.

PS. So many run on sentences, why did I even put any periods in there!!

[Author]

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