Why not walk away?

[farbet]

What causes foreclosures?

Your gut instinct may tell you it is not being able to make the mortgage payments. Even though we have been inundated with media coverage about this (i.e. impact of rate resets on ARMs), the truth is:

This is not the primary reason for foreclosures at all.

The main driver of foreclosures is the change in real estate prices.
The recent spike in home foreclosures in Massachusetts is caused by falling home prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston……
US Treasury Secretary Henry Paulson is negotiating a deal to freeze monthly mortgage payments on some subprime loans by delaying scheduled interest rate increases. Paulson reiterated yesterday the plan could be announced this week.

This proves that the Paulson plan is a phony PR stunt because it does not address the primary cause of the foreclosure problem. Foreclosures are mostly driven by declining homeowner equity—especially negative equity.

Precious Metals Update

Paulson should be jailed. He was at Goldman Sachs.Goldman Sachs encourged the imploders to write as many loans as possible-they could package it and sell to unsuspecting foreigners( no one trusts US Paper now).
Now he is at Treasury and he is “planning to bailout ” borrowers. What a bunch of liqid crap!!

[DaCounselor]

“What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
2nds are recourse in California. They can come after you. If they feel they can’t get anything from you, they can 1099 you for loan loss forgiveness which gets taxed at income rates for the equivalent $$.”
________________________________

If the 2nd was purchase money, like the 20% 2nd of an 80/20 deal, it is non-recourse.

[DaCounselor]

“What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
2nds are recourse in California. They can come after you. If they feel they can’t get anything from you, they can 1099 you for loan loss forgiveness which gets taxed at income rates for the equivalent $$.”
________________________________

If the 2nd was purchase money, like the 20% 2nd of an 80/20 deal, it is non-recourse.

[DaCounselor]

“What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
2nds are recourse in California. They can come after you. If they feel they can’t get anything from you, they can 1099 you for loan loss forgiveness which gets taxed at income rates for the equivalent $$.”
________________________________

If the 2nd was purchase money, like the 20% 2nd of an 80/20 deal, it is non-recourse.

[DaCounselor]

“What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
2nds are recourse in California. They can come after you. If they feel they can’t get anything from you, they can 1099 you for loan loss forgiveness which gets taxed at income rates for the equivalent $$.”
________________________________

If the 2nd was purchase money, like the 20% 2nd of an 80/20 deal, it is non-recourse.

[DaCounselor]

“What about 2nd mortgage? Can I walk away from it too? Or they would come after my other asset?
2nds are recourse in California. They can come after you. If they feel they can’t get anything from you, they can 1099 you for loan loss forgiveness which gets taxed at income rates for the equivalent $$.”
________________________________

If the 2nd was purchase money, like the 20% 2nd of an 80/20 deal, it is non-recourse.

[(former)FormerSanDiegan]

The main driver of foreclosures is the change in real estate prices.
The recent spike in home foreclosures in Massachusetts is caused by falling home prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston……

This is misleading. It’s really the combination of declining prices AND the inability to pay.

When home prices were rising, people who ran into trouble or could not afford their payment did not go into foreclosure. They could sell in a rampant sellers’ market and come out with some cash.

The article makes it sound as if lower prices are the sole cause.

[(former)FormerSanDiegan]

The main driver of foreclosures is the change in real estate prices.
The recent spike in home foreclosures in Massachusetts is caused by falling home prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston……

This is misleading. It’s really the combination of declining prices AND the inability to pay.

When home prices were rising, people who ran into trouble or could not afford their payment did not go into foreclosure. They could sell in a rampant sellers’ market and come out with some cash.

The article makes it sound as if lower prices are the sole cause.

[(former)FormerSanDiegan]

The main driver of foreclosures is the change in real estate prices.
The recent spike in home foreclosures in Massachusetts is caused by falling home prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston……

This is misleading. It’s really the combination of declining prices AND the inability to pay.

When home prices were rising, people who ran into trouble or could not afford their payment did not go into foreclosure. They could sell in a rampant sellers’ market and come out with some cash.

The article makes it sound as if lower prices are the sole cause.

[(former)FormerSanDiegan]

The main driver of foreclosures is the change in real estate prices.
The recent spike in home foreclosures in Massachusetts is caused by falling home prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston……

This is misleading. It’s really the combination of declining prices AND the inability to pay.

When home prices were rising, people who ran into trouble or could not afford their payment did not go into foreclosure. They could sell in a rampant sellers’ market and come out with some cash.

The article makes it sound as if lower prices are the sole cause.

[(former)FormerSanDiegan]

The main driver of foreclosures is the change in real estate prices.
The recent spike in home foreclosures in Massachusetts is caused by falling home prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston……

This is misleading. It’s really the combination of declining prices AND the inability to pay.

When home prices were rising, people who ran into trouble or could not afford their payment did not go into foreclosure. They could sell in a rampant sellers’ market and come out with some cash.

The article makes it sound as if lower prices are the sole cause.

[kelly]

sandiego – (or anyone in a similar situation)

Any chance you’d be willing to talk more about this for a story, on or off the record?

Send me an e-mail, if so.

Thanks –
kb

[kelly]

sandiego – (or anyone in a similar situation)

Any chance you’d be willing to talk more about this for a story, on or off the record?

Send me an e-mail, if so.

Thanks –
kb

[kelly]

sandiego – (or anyone in a similar situation)

Any chance you’d be willing to talk more about this for a story, on or off the record?

Send me an e-mail, if so.

Thanks –
kb

[kelly]

sandiego – (or anyone in a similar situation)

Any chance you’d be willing to talk more about this for a story, on or off the record?

Send me an e-mail, if so.

Thanks –
kb

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