[23109VC]

true – life is not fair. but one would hope that someone in gov’t, would stand up and say “hey, you know what – if you took out a loan on a $750,000 house, lied bout your income and claimed you made $300k/year when in reality you made about $50k – and now you can’t afford the house b/c your teaser rate is up and the neg am arm has reset – TOUGH $HIT”

I’ve heard a few people hint at personal responsibility, but they all fall back on how we have to keep people in their homes, and how we have to punish these horrible predatory lenders…

predatory lending? i’m sure a lot of lenders put guns to people’s heads and told them they had to sign the dotted line… you know what – if someone is dumb enough to buy stuff they can’t afford b/c they “wanted” to belive the BS they got fed by teh lenders – they deserve what they get.

I understand that life is not fair – but it still sucks to feel that the morons get a freebie and the responsible people get once again told to just suck it up.

it’s like taxes. I worked hard to get a good job and make good money. then there are people who are complete losers who do nothing but drain on the system. I have to pay a lot in taxes, get very little in return, and the losers get a big fat check at the end of the year which they piss away on plasmas and at the casino – on my dime. and YOURS.

it’s enough to make you believe that cheating the system and playing dirty is HOW you have to play to get ahead. Being nice and following the rules gets you nowhere

[23109VC]

true – life is not fair. but one would hope that someone in gov’t, would stand up and say “hey, you know what – if you took out a loan on a $750,000 house, lied bout your income and claimed you made $300k/year when in reality you made about $50k – and now you can’t afford the house b/c your teaser rate is up and the neg am arm has reset – TOUGH $HIT”

I’ve heard a few people hint at personal responsibility, but they all fall back on how we have to keep people in their homes, and how we have to punish these horrible predatory lenders…

predatory lending? i’m sure a lot of lenders put guns to people’s heads and told them they had to sign the dotted line… you know what – if someone is dumb enough to buy stuff they can’t afford b/c they “wanted” to belive the BS they got fed by teh lenders – they deserve what they get.

I understand that life is not fair – but it still sucks to feel that the morons get a freebie and the responsible people get once again told to just suck it up.

it’s like taxes. I worked hard to get a good job and make good money. then there are people who are complete losers who do nothing but drain on the system. I have to pay a lot in taxes, get very little in return, and the losers get a big fat check at the end of the year which they piss away on plasmas and at the casino – on my dime. and YOURS.

it’s enough to make you believe that cheating the system and playing dirty is HOW you have to play to get ahead. Being nice and following the rules gets you nowhere

[23109VC]

true – life is not fair. but one would hope that someone in gov’t, would stand up and say “hey, you know what – if you took out a loan on a $750,000 house, lied bout your income and claimed you made $300k/year when in reality you made about $50k – and now you can’t afford the house b/c your teaser rate is up and the neg am arm has reset – TOUGH $HIT”

I’ve heard a few people hint at personal responsibility, but they all fall back on how we have to keep people in their homes, and how we have to punish these horrible predatory lenders…

predatory lending? i’m sure a lot of lenders put guns to people’s heads and told them they had to sign the dotted line… you know what – if someone is dumb enough to buy stuff they can’t afford b/c they “wanted” to belive the BS they got fed by teh lenders – they deserve what they get.

I understand that life is not fair – but it still sucks to feel that the morons get a freebie and the responsible people get once again told to just suck it up.

it’s like taxes. I worked hard to get a good job and make good money. then there are people who are complete losers who do nothing but drain on the system. I have to pay a lot in taxes, get very little in return, and the losers get a big fat check at the end of the year which they piss away on plasmas and at the casino – on my dime. and YOURS.

it’s enough to make you believe that cheating the system and playing dirty is HOW you have to play to get ahead. Being nice and following the rules gets you nowhere

[23109VC]

true – life is not fair. but one would hope that someone in gov’t, would stand up and say “hey, you know what – if you took out a loan on a $750,000 house, lied bout your income and claimed you made $300k/year when in reality you made about $50k – and now you can’t afford the house b/c your teaser rate is up and the neg am arm has reset – TOUGH $HIT”

I’ve heard a few people hint at personal responsibility, but they all fall back on how we have to keep people in their homes, and how we have to punish these horrible predatory lenders…

predatory lending? i’m sure a lot of lenders put guns to people’s heads and told them they had to sign the dotted line… you know what – if someone is dumb enough to buy stuff they can’t afford b/c they “wanted” to belive the BS they got fed by teh lenders – they deserve what they get.

I understand that life is not fair – but it still sucks to feel that the morons get a freebie and the responsible people get once again told to just suck it up.

it’s like taxes. I worked hard to get a good job and make good money. then there are people who are complete losers who do nothing but drain on the system. I have to pay a lot in taxes, get very little in return, and the losers get a big fat check at the end of the year which they piss away on plasmas and at the casino – on my dime. and YOURS.

it’s enough to make you believe that cheating the system and playing dirty is HOW you have to play to get ahead. Being nice and following the rules gets you nowhere

[23109VC]

this is the BS that has ticked me off –

you are hardworking wage earner. you make good money but are not rich. all the morons who bought with toxic loans ran up prices of homes. your “good income” only allows you to buy an “average” home, while the dumba$$e$ bought mcmansions they never should have, but did b/c they were dumb and took out unsafe loans.

all the homes are now upside down. the idiots who don’t make enough to buy that 750k mansion now cry “unfair” and the gov’t is going to bail them out. they probably make less than 100k, probably far less – but yet they get a principal reduction, super low interest rates… you name it – let’s keep them in their mansion.

you the 100k+ earning hard worker, responsible guy – you try to get some assistance and they will tell you that you MAKE TOO MUCH and you don’t qualify.. just wait.

any of this bailout stuff will have strings attached so that most, if not all,of US here at piggington – who make decent money will be told we don’t qualify for relief…

so we keep working, keep paying taxes, and they take our tax money and essentially give it to the morons who bought houses they never should have.

this does nothing except piss people off and encourage people to find ways to scam or beat the system and be irresponsible.

what SHOULD happen is there should be NO bailout for anyone. if you crash and burn – good. you will be an example for everyone else to learn from – and people will pay their bills and not extend themselves. they will see that when you are irresponsible with your money – you suffer.

what we are teaching everyone is that you can do whatever you want – spend money you don’t have, buy things you can’t afford – and when the $hit hits the fan, you will get bailed out.

if you can’t beat them join them.

[23109VC]

this is the BS that has ticked me off –

you are hardworking wage earner. you make good money but are not rich. all the morons who bought with toxic loans ran up prices of homes. your “good income” only allows you to buy an “average” home, while the dumba$$e$ bought mcmansions they never should have, but did b/c they were dumb and took out unsafe loans.

all the homes are now upside down. the idiots who don’t make enough to buy that 750k mansion now cry “unfair” and the gov’t is going to bail them out. they probably make less than 100k, probably far less – but yet they get a principal reduction, super low interest rates… you name it – let’s keep them in their mansion.

you the 100k+ earning hard worker, responsible guy – you try to get some assistance and they will tell you that you MAKE TOO MUCH and you don’t qualify.. just wait.

any of this bailout stuff will have strings attached so that most, if not all,of US here at piggington – who make decent money will be told we don’t qualify for relief…

so we keep working, keep paying taxes, and they take our tax money and essentially give it to the morons who bought houses they never should have.

this does nothing except piss people off and encourage people to find ways to scam or beat the system and be irresponsible.

what SHOULD happen is there should be NO bailout for anyone. if you crash and burn – good. you will be an example for everyone else to learn from – and people will pay their bills and not extend themselves. they will see that when you are irresponsible with your money – you suffer.

what we are teaching everyone is that you can do whatever you want – spend money you don’t have, buy things you can’t afford – and when the $hit hits the fan, you will get bailed out.

if you can’t beat them join them.

[23109VC]

this is the BS that has ticked me off –

you are hardworking wage earner. you make good money but are not rich. all the morons who bought with toxic loans ran up prices of homes. your “good income” only allows you to buy an “average” home, while the dumba$$e$ bought mcmansions they never should have, but did b/c they were dumb and took out unsafe loans.

all the homes are now upside down. the idiots who don’t make enough to buy that 750k mansion now cry “unfair” and the gov’t is going to bail them out. they probably make less than 100k, probably far less – but yet they get a principal reduction, super low interest rates… you name it – let’s keep them in their mansion.

you the 100k+ earning hard worker, responsible guy – you try to get some assistance and they will tell you that you MAKE TOO MUCH and you don’t qualify.. just wait.

any of this bailout stuff will have strings attached so that most, if not all,of US here at piggington – who make decent money will be told we don’t qualify for relief…

so we keep working, keep paying taxes, and they take our tax money and essentially give it to the morons who bought houses they never should have.

this does nothing except piss people off and encourage people to find ways to scam or beat the system and be irresponsible.

what SHOULD happen is there should be NO bailout for anyone. if you crash and burn – good. you will be an example for everyone else to learn from – and people will pay their bills and not extend themselves. they will see that when you are irresponsible with your money – you suffer.

what we are teaching everyone is that you can do whatever you want – spend money you don’t have, buy things you can’t afford – and when the $hit hits the fan, you will get bailed out.

if you can’t beat them join them.

[23109VC]

this is the BS that has ticked me off –

you are hardworking wage earner. you make good money but are not rich. all the morons who bought with toxic loans ran up prices of homes. your “good income” only allows you to buy an “average” home, while the dumba$$e$ bought mcmansions they never should have, but did b/c they were dumb and took out unsafe loans.

all the homes are now upside down. the idiots who don’t make enough to buy that 750k mansion now cry “unfair” and the gov’t is going to bail them out. they probably make less than 100k, probably far less – but yet they get a principal reduction, super low interest rates… you name it – let’s keep them in their mansion.

you the 100k+ earning hard worker, responsible guy – you try to get some assistance and they will tell you that you MAKE TOO MUCH and you don’t qualify.. just wait.

any of this bailout stuff will have strings attached so that most, if not all,of US here at piggington – who make decent money will be told we don’t qualify for relief…

so we keep working, keep paying taxes, and they take our tax money and essentially give it to the morons who bought houses they never should have.

this does nothing except piss people off and encourage people to find ways to scam or beat the system and be irresponsible.

what SHOULD happen is there should be NO bailout for anyone. if you crash and burn – good. you will be an example for everyone else to learn from – and people will pay their bills and not extend themselves. they will see that when you are irresponsible with your money – you suffer.

what we are teaching everyone is that you can do whatever you want – spend money you don’t have, buy things you can’t afford – and when the $hit hits the fan, you will get bailed out.

if you can’t beat them join them.

[23109VC]

this is the BS that has ticked me off –

you are hardworking wage earner. you make good money but are not rich. all the morons who bought with toxic loans ran up prices of homes. your “good income” only allows you to buy an “average” home, while the dumba$$e$ bought mcmansions they never should have, but did b/c they were dumb and took out unsafe loans.

all the homes are now upside down. the idiots who don’t make enough to buy that 750k mansion now cry “unfair” and the gov’t is going to bail them out. they probably make less than 100k, probably far less – but yet they get a principal reduction, super low interest rates… you name it – let’s keep them in their mansion.

you the 100k+ earning hard worker, responsible guy – you try to get some assistance and they will tell you that you MAKE TOO MUCH and you don’t qualify.. just wait.

any of this bailout stuff will have strings attached so that most, if not all,of US here at piggington – who make decent money will be told we don’t qualify for relief…

so we keep working, keep paying taxes, and they take our tax money and essentially give it to the morons who bought houses they never should have.

this does nothing except piss people off and encourage people to find ways to scam or beat the system and be irresponsible.

what SHOULD happen is there should be NO bailout for anyone. if you crash and burn – good. you will be an example for everyone else to learn from – and people will pay their bills and not extend themselves. they will see that when you are irresponsible with your money – you suffer.

what we are teaching everyone is that you can do whatever you want – spend money you don’t have, buy things you can’t afford – and when the $hit hits the fan, you will get bailed out.

if you can’t beat them join them.

[23109VC]

maybe i am thinking of it as an investment. maybe it depends how you define the term. i’m not planning on selling my house to make money on it. it’s not an investment in that sense – not a short term one.

long term – sure. but that’s a given. any homewoner considers their home a long term investment..the problem being – my hosue is so underwater that it has perhaps become a HORRIBLE investment and I’d be advised to get out of it and put my money elsewhere.

so in that sense – yeah, i’m considering it an investment – but in the long term. and it’s probably going to take hte LONG LONG LONG term to see any return on the investment.

i’m also looking at bang for the buck. I could probably dump my house and rent something far nicer and larger for far less and come out ahead financially.

if my home is now so far underwater – i don’t own jack squat – so what am i really giving up??? dumpign my hosue screws my credit but frees up cash.

if i really really had to buy – i have some relatives who are fairly well off who would probably buy something for cash – and carry the paper and let me “buy” it from them and pay them the payment. one way to bypass all th banks and just get into somethig else..but given all i’ve seen – i’d be hesitant to buy anythign right now.

the only upside to buying i could see would be if someone could obtain a dirt cheap cash price on a good house, good area, and be able to know that the rents for that rea would turn a profit – and that profit would beat out other types of investments. i coudl see buying then – rather than putting money in a stock market that is maybe doing to dump further – at least putting some money into a house with a good rental return would be a worthwhile place to put somemoney.

it all depends on how CHEAP the hosue coudl be had for and how HIGH the rent would be. i have heard of cash buyers/investors getting deals that are uninmaginable due to the banks just dumping stuff.

i know the hosue next to me sodl for less than 300k. it’s in escrow but i dont’ knwo the final sale price. i know asking was 299k. this house sold for like $525 a couple years ago. so at LEAST a $200k drop! knowing what this new homeowner will pay for their monthly housing bill, compared to me and the rest of the street -0 this is what pisses people off. it makes you feel like your mortage payment is pissing money away

which is why i’m not going to pay this month. let the bank call me and bitch at me and then i can put it to them bluntly. they can negotitate with me or they can have it back and lose even more money…

my payment is late one day now – it’s the 16th. i’m waiting for them to call and ask where’s the money. 🙂 i’ll let you know how my DIY loan renegotation goes.

[23109VC]

maybe i am thinking of it as an investment. maybe it depends how you define the term. i’m not planning on selling my house to make money on it. it’s not an investment in that sense – not a short term one.

long term – sure. but that’s a given. any homewoner considers their home a long term investment..the problem being – my hosue is so underwater that it has perhaps become a HORRIBLE investment and I’d be advised to get out of it and put my money elsewhere.

so in that sense – yeah, i’m considering it an investment – but in the long term. and it’s probably going to take hte LONG LONG LONG term to see any return on the investment.

i’m also looking at bang for the buck. I could probably dump my house and rent something far nicer and larger for far less and come out ahead financially.

if my home is now so far underwater – i don’t own jack squat – so what am i really giving up??? dumpign my hosue screws my credit but frees up cash.

if i really really had to buy – i have some relatives who are fairly well off who would probably buy something for cash – and carry the paper and let me “buy” it from them and pay them the payment. one way to bypass all th banks and just get into somethig else..but given all i’ve seen – i’d be hesitant to buy anythign right now.

the only upside to buying i could see would be if someone could obtain a dirt cheap cash price on a good house, good area, and be able to know that the rents for that rea would turn a profit – and that profit would beat out other types of investments. i coudl see buying then – rather than putting money in a stock market that is maybe doing to dump further – at least putting some money into a house with a good rental return would be a worthwhile place to put somemoney.

it all depends on how CHEAP the hosue coudl be had for and how HIGH the rent would be. i have heard of cash buyers/investors getting deals that are uninmaginable due to the banks just dumping stuff.

i know the hosue next to me sodl for less than 300k. it’s in escrow but i dont’ knwo the final sale price. i know asking was 299k. this house sold for like $525 a couple years ago. so at LEAST a $200k drop! knowing what this new homeowner will pay for their monthly housing bill, compared to me and the rest of the street -0 this is what pisses people off. it makes you feel like your mortage payment is pissing money away

which is why i’m not going to pay this month. let the bank call me and bitch at me and then i can put it to them bluntly. they can negotitate with me or they can have it back and lose even more money…

my payment is late one day now – it’s the 16th. i’m waiting for them to call and ask where’s the money. 🙂 i’ll let you know how my DIY loan renegotation goes.

[23109VC]

maybe i am thinking of it as an investment. maybe it depends how you define the term. i’m not planning on selling my house to make money on it. it’s not an investment in that sense – not a short term one.

long term – sure. but that’s a given. any homewoner considers their home a long term investment..the problem being – my hosue is so underwater that it has perhaps become a HORRIBLE investment and I’d be advised to get out of it and put my money elsewhere.

so in that sense – yeah, i’m considering it an investment – but in the long term. and it’s probably going to take hte LONG LONG LONG term to see any return on the investment.

i’m also looking at bang for the buck. I could probably dump my house and rent something far nicer and larger for far less and come out ahead financially.

if my home is now so far underwater – i don’t own jack squat – so what am i really giving up??? dumpign my hosue screws my credit but frees up cash.

if i really really had to buy – i have some relatives who are fairly well off who would probably buy something for cash – and carry the paper and let me “buy” it from them and pay them the payment. one way to bypass all th banks and just get into somethig else..but given all i’ve seen – i’d be hesitant to buy anythign right now.

the only upside to buying i could see would be if someone could obtain a dirt cheap cash price on a good house, good area, and be able to know that the rents for that rea would turn a profit – and that profit would beat out other types of investments. i coudl see buying then – rather than putting money in a stock market that is maybe doing to dump further – at least putting some money into a house with a good rental return would be a worthwhile place to put somemoney.

it all depends on how CHEAP the hosue coudl be had for and how HIGH the rent would be. i have heard of cash buyers/investors getting deals that are uninmaginable due to the banks just dumping stuff.

i know the hosue next to me sodl for less than 300k. it’s in escrow but i dont’ knwo the final sale price. i know asking was 299k. this house sold for like $525 a couple years ago. so at LEAST a $200k drop! knowing what this new homeowner will pay for their monthly housing bill, compared to me and the rest of the street -0 this is what pisses people off. it makes you feel like your mortage payment is pissing money away

which is why i’m not going to pay this month. let the bank call me and bitch at me and then i can put it to them bluntly. they can negotitate with me or they can have it back and lose even more money…

my payment is late one day now – it’s the 16th. i’m waiting for them to call and ask where’s the money. 🙂 i’ll let you know how my DIY loan renegotation goes.

[23109VC]

maybe i am thinking of it as an investment. maybe it depends how you define the term. i’m not planning on selling my house to make money on it. it’s not an investment in that sense – not a short term one.

long term – sure. but that’s a given. any homewoner considers their home a long term investment..the problem being – my hosue is so underwater that it has perhaps become a HORRIBLE investment and I’d be advised to get out of it and put my money elsewhere.

so in that sense – yeah, i’m considering it an investment – but in the long term. and it’s probably going to take hte LONG LONG LONG term to see any return on the investment.

i’m also looking at bang for the buck. I could probably dump my house and rent something far nicer and larger for far less and come out ahead financially.

if my home is now so far underwater – i don’t own jack squat – so what am i really giving up??? dumpign my hosue screws my credit but frees up cash.

if i really really had to buy – i have some relatives who are fairly well off who would probably buy something for cash – and carry the paper and let me “buy” it from them and pay them the payment. one way to bypass all th banks and just get into somethig else..but given all i’ve seen – i’d be hesitant to buy anythign right now.

the only upside to buying i could see would be if someone could obtain a dirt cheap cash price on a good house, good area, and be able to know that the rents for that rea would turn a profit – and that profit would beat out other types of investments. i coudl see buying then – rather than putting money in a stock market that is maybe doing to dump further – at least putting some money into a house with a good rental return would be a worthwhile place to put somemoney.

it all depends on how CHEAP the hosue coudl be had for and how HIGH the rent would be. i have heard of cash buyers/investors getting deals that are uninmaginable due to the banks just dumping stuff.

i know the hosue next to me sodl for less than 300k. it’s in escrow but i dont’ knwo the final sale price. i know asking was 299k. this house sold for like $525 a couple years ago. so at LEAST a $200k drop! knowing what this new homeowner will pay for their monthly housing bill, compared to me and the rest of the street -0 this is what pisses people off. it makes you feel like your mortage payment is pissing money away

which is why i’m not going to pay this month. let the bank call me and bitch at me and then i can put it to them bluntly. they can negotitate with me or they can have it back and lose even more money…

my payment is late one day now – it’s the 16th. i’m waiting for them to call and ask where’s the money. 🙂 i’ll let you know how my DIY loan renegotation goes.

[23109VC]

maybe i am thinking of it as an investment. maybe it depends how you define the term. i’m not planning on selling my house to make money on it. it’s not an investment in that sense – not a short term one.

long term – sure. but that’s a given. any homewoner considers their home a long term investment..the problem being – my hosue is so underwater that it has perhaps become a HORRIBLE investment and I’d be advised to get out of it and put my money elsewhere.

so in that sense – yeah, i’m considering it an investment – but in the long term. and it’s probably going to take hte LONG LONG LONG term to see any return on the investment.

i’m also looking at bang for the buck. I could probably dump my house and rent something far nicer and larger for far less and come out ahead financially.

if my home is now so far underwater – i don’t own jack squat – so what am i really giving up??? dumpign my hosue screws my credit but frees up cash.

if i really really had to buy – i have some relatives who are fairly well off who would probably buy something for cash – and carry the paper and let me “buy” it from them and pay them the payment. one way to bypass all th banks and just get into somethig else..but given all i’ve seen – i’d be hesitant to buy anythign right now.

the only upside to buying i could see would be if someone could obtain a dirt cheap cash price on a good house, good area, and be able to know that the rents for that rea would turn a profit – and that profit would beat out other types of investments. i coudl see buying then – rather than putting money in a stock market that is maybe doing to dump further – at least putting some money into a house with a good rental return would be a worthwhile place to put somemoney.

it all depends on how CHEAP the hosue coudl be had for and how HIGH the rent would be. i have heard of cash buyers/investors getting deals that are uninmaginable due to the banks just dumping stuff.

i know the hosue next to me sodl for less than 300k. it’s in escrow but i dont’ knwo the final sale price. i know asking was 299k. this house sold for like $525 a couple years ago. so at LEAST a $200k drop! knowing what this new homeowner will pay for their monthly housing bill, compared to me and the rest of the street -0 this is what pisses people off. it makes you feel like your mortage payment is pissing money away

which is why i’m not going to pay this month. let the bank call me and bitch at me and then i can put it to them bluntly. they can negotitate with me or they can have it back and lose even more money…

my payment is late one day now – it’s the 16th. i’m waiting for them to call and ask where’s the money. 🙂 i’ll let you know how my DIY loan renegotation goes.

[23109VC]

i can take the insults. I know there are people who feel like someone who takes out a loan and walks is doing something morally wrong… everyone has an opinion.

my take is this – in the “old” days – banks made people put down 20% – b/c they wanted to avoid people like me deciding to walk and stuffing the bank wtih the house. they figured if you put 20% down, there was enough PAIN/LOSS associated with walking that you wouldn’t do it. 20% down had nothign to do with “honor” or integrity – it was all about basically forcing you to put something into it as a way to minimize people actually walking.

recently – banks relaxed the rules, and let everyone buy a house with no mney down. so they took on all the risk. bad move. look at values now – and look at what people are doing.

to me, it’s a business decisions. if I assess all the info and decide that while I am upside down, it is advantageous to just stay put – i’ll do that. if it comes to a point where it actually makes SENSE to just dump it – i’ll do that.

I’m not trying to think like an investor. the house is not an investment. it’s a place to live. but at the same time – i don’t want to royally overpay as I watch prices decline and decline.

maybe someone can help me do the math.
I earn $140k/year. stay at home wife, 3 kids. I pay about $3200/month when you add up my P&I, Taxes, and HOA. the HOA are about $120, can’t write that off, but I can write off the majority of my loan payments as it’s a 30 yr fixed and i’m in the second year or so..so it’ smostly interest.

my house is worth say $180k by my estimates. I paid $350k. so i’m approaching 200k in negative equity. that’s not the righ tterm. i have no equity, the BANK has $200k in negative equity..

so I can rent that “bigger” house my wife wants for about $2000-2200/month.

how much do I actually “save” on my income by writing off the interest/taxes?

I think my monthly taxes are around $400/month. My monthly mortgage payments are around $2600 when you add up the first/second. my int rates are not that great – not horrid but not the greatest.

if you look at what I pay, what I can write off, and my income/tax bracket – I think I’m saving 500-600/month by writing this stuff off. so if you take my $3200/month in carrying costs, and take off the lower figure – 500, you get a $2700/month is actual cost to carry this house.

I can rent the same thing – actually something larger/better for 700 less/month. so each year I stay in this house, I’m losing $700/month.

now if housing prices were going to come back quickly, staying underwater seems like less of aproblem, but when you estimate that it may take a decade or longer before prices come back – it makes me thing that I will be eating this upside down loss for the next ten years.

so take that 700/month and multiply that out by 10 years…and then figure around then, will values be about where they were when I bought.

the downside to walking away is my credit will tank, I will wind up renting something, and it will be 5-7 years before I could buy something – but perhaps it will be that long before I’d WANT to buy anything…

a good friend of mine who owns his own business, used his original house to fund his business – HELOC. the business tanked, he coudln’t make his payments, and left his home/foreclosure. he now rents a house for less than what his old payments were, and the new house he is in is twice as nice as the one he left. in many ways, he’s better off after the “foreclosure”. he lives in a better house, pays less per month, he just can’t say he “owns” it.

but in this market – no one really owns anything the vast majority of people are holding an ownership interest in an asset that is leverage far beyond what it’s worth… so we all own debts…

to me it’s a numbers game. i like my house and am content to stay, but at some point I feel like maybe i’d just be stupid to stay and keep paying.

if I were to be able to save $700 (maybe more) per month, and put that money into an investment, or my 401k, and just rented for 10 years – who is ahead? the guy who “honors” his obligations, stays in the house, pays the mortgage every month, and figure in 10 years the house value is close to the 350k i paid, and my balance has gradually paid down over the 10 years to where there is equity in the home, OR the guy who pulled the plug, rented, and invested that 700/month over the next 10 years into a 401k, or some other investment – hell, just putting it in a hole in the ground, with no interest would net me 84000. stiffing the bank for the next 12 months and not paying the mortgage nets me another 30k…

so am I correct in thinking I realistically could be $100,000 ahead by just walking and renting for ten years?

if values came back to current levels in 10 years, and I paid my loan down over 10 years, somehow I don’t think i’d have paid off 100k when the loan is a 30 year fixed….

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