[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….

[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….

[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….

[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….

[23109VC]

all I know is that in the near future, my house will be worth about $200k LESS than what I owe.

so why keep it? with 100% financing – explain to me the “benefit” of keeping it and paying all that money every month on a house leveraged to $350k that is only worth $150k.

I would think that at some point – I will be able to rent a bigger/better/nicer house for LESS money and since my house is going to be $200k upside down, and I put nothign into it – the most logical and financially reasonable thing to do would be dump it on teh bank and walk.

i really don’t care about what is “right” or what would be the “morally appropriate” thing to do. sad to say it, but if I have to shaft my bank and save my own neck – so be it. it’s money, it was a contract, and it went sour – and unfortuntely for the bank, they were dumb enough to loan me that much money on an asset that just took a dump. I promised to pay, but if I don’t pay, they get to have the house. that’s how it works. it’s all legal.

believe me, if there was a claus that said if my house tripled in value they were entitled to sell my hosue and pocket the proceeds – and it did that – they wouldn’t “feel sorry for me” and let me stay – they’d throw my a$$ out so fast it woudl make my head spin. i’m looking at this STRICTLY from a standpoint of what makes the most financial sense.

the best option woudl to have never bought the house in the first place. i dind’t listen to you guys, did it anyway, so here I am. no point in whining over that now. what’s done is done. you guys were right. i can admit that.

but now that it’s happened – the next question is what is my next option. Keeping or dumping the hosue – to me – is mostly motviated by how upside down the hosue is, how long it will take to recoup that money, and largely – what will it cost me on a monthly basis to replace what I have now.

right now I have what I would consider a very nicely upgraded, nicely loaced, but somewhat “small” house in Harveston. about 1900 sq ft. one story. nicely fixed up. it has all the ‘bells and whistles’ i want in a house.

I pay about $3200-3300 a month when you factor in principal/interest/HOA, etc.

I earn about $140k/year roughly. do the math. even with my tax writeoff – I think I woudl be saving a good $500+/month if I left this house, and rented a bigger/better house that woudl cost me around $2000/month. no HOA, no upkeep – just pay monthly rent.

I could drag out the foreclosure process for a year, pocket about $36000. then paying $2000/month in rent – I’d have a bigger hosue (which my wife wants – we had another baby) – and pay less money.

[23109VC]

all I know is that in the near future, my house will be worth about $200k LESS than what I owe.

so why keep it? with 100% financing – explain to me the “benefit” of keeping it and paying all that money every month on a house leveraged to $350k that is only worth $150k.

I would think that at some point – I will be able to rent a bigger/better/nicer house for LESS money and since my house is going to be $200k upside down, and I put nothign into it – the most logical and financially reasonable thing to do would be dump it on teh bank and walk.

i really don’t care about what is “right” or what would be the “morally appropriate” thing to do. sad to say it, but if I have to shaft my bank and save my own neck – so be it. it’s money, it was a contract, and it went sour – and unfortuntely for the bank, they were dumb enough to loan me that much money on an asset that just took a dump. I promised to pay, but if I don’t pay, they get to have the house. that’s how it works. it’s all legal.

believe me, if there was a claus that said if my house tripled in value they were entitled to sell my hosue and pocket the proceeds – and it did that – they wouldn’t “feel sorry for me” and let me stay – they’d throw my a$$ out so fast it woudl make my head spin. i’m looking at this STRICTLY from a standpoint of what makes the most financial sense.

the best option woudl to have never bought the house in the first place. i dind’t listen to you guys, did it anyway, so here I am. no point in whining over that now. what’s done is done. you guys were right. i can admit that.

but now that it’s happened – the next question is what is my next option. Keeping or dumping the hosue – to me – is mostly motviated by how upside down the hosue is, how long it will take to recoup that money, and largely – what will it cost me on a monthly basis to replace what I have now.

right now I have what I would consider a very nicely upgraded, nicely loaced, but somewhat “small” house in Harveston. about 1900 sq ft. one story. nicely fixed up. it has all the ‘bells and whistles’ i want in a house.

I pay about $3200-3300 a month when you factor in principal/interest/HOA, etc.

I earn about $140k/year roughly. do the math. even with my tax writeoff – I think I woudl be saving a good $500+/month if I left this house, and rented a bigger/better house that woudl cost me around $2000/month. no HOA, no upkeep – just pay monthly rent.

I could drag out the foreclosure process for a year, pocket about $36000. then paying $2000/month in rent – I’d have a bigger hosue (which my wife wants – we had another baby) – and pay less money.

[23109VC]

all I know is that in the near future, my house will be worth about $200k LESS than what I owe.

so why keep it? with 100% financing – explain to me the “benefit” of keeping it and paying all that money every month on a house leveraged to $350k that is only worth $150k.

I would think that at some point – I will be able to rent a bigger/better/nicer house for LESS money and since my house is going to be $200k upside down, and I put nothign into it – the most logical and financially reasonable thing to do would be dump it on teh bank and walk.

i really don’t care about what is “right” or what would be the “morally appropriate” thing to do. sad to say it, but if I have to shaft my bank and save my own neck – so be it. it’s money, it was a contract, and it went sour – and unfortuntely for the bank, they were dumb enough to loan me that much money on an asset that just took a dump. I promised to pay, but if I don’t pay, they get to have the house. that’s how it works. it’s all legal.

believe me, if there was a claus that said if my house tripled in value they were entitled to sell my hosue and pocket the proceeds – and it did that – they wouldn’t “feel sorry for me” and let me stay – they’d throw my a$$ out so fast it woudl make my head spin. i’m looking at this STRICTLY from a standpoint of what makes the most financial sense.

the best option woudl to have never bought the house in the first place. i dind’t listen to you guys, did it anyway, so here I am. no point in whining over that now. what’s done is done. you guys were right. i can admit that.

but now that it’s happened – the next question is what is my next option. Keeping or dumping the hosue – to me – is mostly motviated by how upside down the hosue is, how long it will take to recoup that money, and largely – what will it cost me on a monthly basis to replace what I have now.

right now I have what I would consider a very nicely upgraded, nicely loaced, but somewhat “small” house in Harveston. about 1900 sq ft. one story. nicely fixed up. it has all the ‘bells and whistles’ i want in a house.

I pay about $3200-3300 a month when you factor in principal/interest/HOA, etc.

I earn about $140k/year roughly. do the math. even with my tax writeoff – I think I woudl be saving a good $500+/month if I left this house, and rented a bigger/better house that woudl cost me around $2000/month. no HOA, no upkeep – just pay monthly rent.

I could drag out the foreclosure process for a year, pocket about $36000. then paying $2000/month in rent – I’d have a bigger hosue (which my wife wants – we had another baby) – and pay less money.

[23109VC]

all I know is that in the near future, my house will be worth about $200k LESS than what I owe.

so why keep it? with 100% financing – explain to me the “benefit” of keeping it and paying all that money every month on a house leveraged to $350k that is only worth $150k.

I would think that at some point – I will be able to rent a bigger/better/nicer house for LESS money and since my house is going to be $200k upside down, and I put nothign into it – the most logical and financially reasonable thing to do would be dump it on teh bank and walk.

i really don’t care about what is “right” or what would be the “morally appropriate” thing to do. sad to say it, but if I have to shaft my bank and save my own neck – so be it. it’s money, it was a contract, and it went sour – and unfortuntely for the bank, they were dumb enough to loan me that much money on an asset that just took a dump. I promised to pay, but if I don’t pay, they get to have the house. that’s how it works. it’s all legal.

believe me, if there was a claus that said if my house tripled in value they were entitled to sell my hosue and pocket the proceeds – and it did that – they wouldn’t “feel sorry for me” and let me stay – they’d throw my a$$ out so fast it woudl make my head spin. i’m looking at this STRICTLY from a standpoint of what makes the most financial sense.

the best option woudl to have never bought the house in the first place. i dind’t listen to you guys, did it anyway, so here I am. no point in whining over that now. what’s done is done. you guys were right. i can admit that.

but now that it’s happened – the next question is what is my next option. Keeping or dumping the hosue – to me – is mostly motviated by how upside down the hosue is, how long it will take to recoup that money, and largely – what will it cost me on a monthly basis to replace what I have now.

right now I have what I would consider a very nicely upgraded, nicely loaced, but somewhat “small” house in Harveston. about 1900 sq ft. one story. nicely fixed up. it has all the ‘bells and whistles’ i want in a house.

I pay about $3200-3300 a month when you factor in principal/interest/HOA, etc.

I earn about $140k/year roughly. do the math. even with my tax writeoff – I think I woudl be saving a good $500+/month if I left this house, and rented a bigger/better house that woudl cost me around $2000/month. no HOA, no upkeep – just pay monthly rent.

I could drag out the foreclosure process for a year, pocket about $36000. then paying $2000/month in rent – I’d have a bigger hosue (which my wife wants – we had another baby) – and pay less money.

[23109VC]

all I know is that in the near future, my house will be worth about $200k LESS than what I owe.

so why keep it? with 100% financing – explain to me the “benefit” of keeping it and paying all that money every month on a house leveraged to $350k that is only worth $150k.

I would think that at some point – I will be able to rent a bigger/better/nicer house for LESS money and since my house is going to be $200k upside down, and I put nothign into it – the most logical and financially reasonable thing to do would be dump it on teh bank and walk.

i really don’t care about what is “right” or what would be the “morally appropriate” thing to do. sad to say it, but if I have to shaft my bank and save my own neck – so be it. it’s money, it was a contract, and it went sour – and unfortuntely for the bank, they were dumb enough to loan me that much money on an asset that just took a dump. I promised to pay, but if I don’t pay, they get to have the house. that’s how it works. it’s all legal.

believe me, if there was a claus that said if my house tripled in value they were entitled to sell my hosue and pocket the proceeds – and it did that – they wouldn’t “feel sorry for me” and let me stay – they’d throw my a$$ out so fast it woudl make my head spin. i’m looking at this STRICTLY from a standpoint of what makes the most financial sense.

the best option woudl to have never bought the house in the first place. i dind’t listen to you guys, did it anyway, so here I am. no point in whining over that now. what’s done is done. you guys were right. i can admit that.

but now that it’s happened – the next question is what is my next option. Keeping or dumping the hosue – to me – is mostly motviated by how upside down the hosue is, how long it will take to recoup that money, and largely – what will it cost me on a monthly basis to replace what I have now.

right now I have what I would consider a very nicely upgraded, nicely loaced, but somewhat “small” house in Harveston. about 1900 sq ft. one story. nicely fixed up. it has all the ‘bells and whistles’ i want in a house.

I pay about $3200-3300 a month when you factor in principal/interest/HOA, etc.

I earn about $140k/year roughly. do the math. even with my tax writeoff – I think I woudl be saving a good $500+/month if I left this house, and rented a bigger/better house that woudl cost me around $2000/month. no HOA, no upkeep – just pay monthly rent.

I could drag out the foreclosure process for a year, pocket about $36000. then paying $2000/month in rent – I’d have a bigger hosue (which my wife wants – we had another baby) – and pay less money.

[23109VC]

everyone here told me not to buy. i did. shame on me. but I could care less at this point about being “the good guy” and just paying on my loan. in my opnion, that would be the dumb schmuck way to do it.

in this game, being nice nd upstanding gets you nothing. if the tables were turned, and I fell on hard times, and my house was worth twice what I paid, the banks would froth at the mouth to kcik me out, sell it, and pocket the money. now that it’s the reverse, why should I be “mr nice guy” and just take it up the a$$.

housin prices got run up b/c of these frickin banks, and b/c of morons who bought what they coudlnt’ buy. yeah, I bought it. but why should I pay the high inflated price, and when it all collapses, just hold hte bag and take it while everyone else gets a freebie.

in the end, I can just milk it for a year, then walk away. i have some rich relatives who could buy me a house for cash and carry paper. i could just rent for a while and repair my credit. i’m at the point where I honestly don’t care.

if I stay in myh ouse, lose my house, rent a house – given everything going on with the economy, the housing market, I don’t care anymore. i may have gotten caught up in that whole” i’ve got to own a house” thing, and now i’ve snapped out of it and relaize it’s just a box i live in, and as far as I’m concerned, i’m just looking to pay as little as possible for the nicest place to live.

if staying in my house ends up making sense, I’ll do it. but when you have a mortgage amount of approx $350k and your house is worth $200k, staying in the house might actually be the STUPID thing to do. i have a 100% non recourse loan. I can pack up my stuff, walk away, and the bank takes it up the a$$ not me. my credit gets screwed, but i really dont’ care. hal fthe country will have scrwed up credit by the time this is said and done with, maybe more than 50%…

i’m trying to view this from a rational standpoint. i’m envisioning that there is going to come a point where my house price will go so low, that if I were to sit down with a financial planner, economic advisor – and explained my situation they woudl say “dump your house”. that is the SMART thing to do. let the bank eat the loss. rent something else.

it realistically may be that I would be AHEAD financially if I were to let my credit get hit, spend less oney on a rental, and pocket money, repair my creidt, and then rebuy later when prices are more rational. VS suck it up an stay/pay and wait 15 years to see any equity….

i made the bed, I’m lying in it. I’m not blaming others. I’m not a “victim” – but I do feel a sense of frustration that as a hard working productive member of society who got caught up i the “buy the American dream” and boght a home that I COULD afford..I have a big payment but I have a big salary (relative to the general public) I”m sure many of you are far better off than me..I don’t mean it in an arrogant way..just that I earn good money and I bought a hosue with a 30 yr fixed that I CAN afford. but the prices were blown out of proportio nby all the morons who bought what they coudl not afford.

now prices are collapsing. and b/c the dumb banks let me in wiht 100% financing, I have the option to just walk and lose no money. just my credit..so at some point, you ahve to seriously consider that option.

if the bank will renegotiate with me and make it worthwhile to stay, great. if not, they can frickin have it.

now I don’t know about temecula guys statements that banks aren’t really giving any one anything. if they say they will convert my 30 yr fixed P&I loan into an interst only..that gets me nothign excpet saving montly monty and effectivel make me like a long term renter…

now if they would actually reduce my principal, just write off part of what I owe, and/or lower my int rate, that would be great. my rates now are only so-so. i have a first at like 6.5 and a second at over 7 i think…crappy rates. i coud probably push hard for them to drop those to very aggressive rates..

but i’m not going to makei t recourse debt. if they want to play that game, i can just tell them to come get the house. in the end, they lose harder than I do. which is why i think an effective negotiator has them over a barrel and can dictate terms.

it’s not about being fair or upstanding anymore. it’s about taking advantage of the situation to do better for yourself – it’s not illegal – it’s business.

[23109VC]

everyone here told me not to buy. i did. shame on me. but I could care less at this point about being “the good guy” and just paying on my loan. in my opnion, that would be the dumb schmuck way to do it.

in this game, being nice nd upstanding gets you nothing. if the tables were turned, and I fell on hard times, and my house was worth twice what I paid, the banks would froth at the mouth to kcik me out, sell it, and pocket the money. now that it’s the reverse, why should I be “mr nice guy” and just take it up the a$$.

housin prices got run up b/c of these frickin banks, and b/c of morons who bought what they coudlnt’ buy. yeah, I bought it. but why should I pay the high inflated price, and when it all collapses, just hold hte bag and take it while everyone else gets a freebie.

in the end, I can just milk it for a year, then walk away. i have some rich relatives who could buy me a house for cash and carry paper. i could just rent for a while and repair my credit. i’m at the point where I honestly don’t care.

if I stay in myh ouse, lose my house, rent a house – given everything going on with the economy, the housing market, I don’t care anymore. i may have gotten caught up in that whole” i’ve got to own a house” thing, and now i’ve snapped out of it and relaize it’s just a box i live in, and as far as I’m concerned, i’m just looking to pay as little as possible for the nicest place to live.

if staying in my house ends up making sense, I’ll do it. but when you have a mortgage amount of approx $350k and your house is worth $200k, staying in the house might actually be the STUPID thing to do. i have a 100% non recourse loan. I can pack up my stuff, walk away, and the bank takes it up the a$$ not me. my credit gets screwed, but i really dont’ care. hal fthe country will have scrwed up credit by the time this is said and done with, maybe more than 50%…

i’m trying to view this from a rational standpoint. i’m envisioning that there is going to come a point where my house price will go so low, that if I were to sit down with a financial planner, economic advisor – and explained my situation they woudl say “dump your house”. that is the SMART thing to do. let the bank eat the loss. rent something else.

it realistically may be that I would be AHEAD financially if I were to let my credit get hit, spend less oney on a rental, and pocket money, repair my creidt, and then rebuy later when prices are more rational. VS suck it up an stay/pay and wait 15 years to see any equity….

i made the bed, I’m lying in it. I’m not blaming others. I’m not a “victim” – but I do feel a sense of frustration that as a hard working productive member of society who got caught up i the “buy the American dream” and boght a home that I COULD afford..I have a big payment but I have a big salary (relative to the general public) I”m sure many of you are far better off than me..I don’t mean it in an arrogant way..just that I earn good money and I bought a hosue with a 30 yr fixed that I CAN afford. but the prices were blown out of proportio nby all the morons who bought what they coudl not afford.

now prices are collapsing. and b/c the dumb banks let me in wiht 100% financing, I have the option to just walk and lose no money. just my credit..so at some point, you ahve to seriously consider that option.

if the bank will renegotiate with me and make it worthwhile to stay, great. if not, they can frickin have it.

now I don’t know about temecula guys statements that banks aren’t really giving any one anything. if they say they will convert my 30 yr fixed P&I loan into an interst only..that gets me nothign excpet saving montly monty and effectivel make me like a long term renter…

now if they would actually reduce my principal, just write off part of what I owe, and/or lower my int rate, that would be great. my rates now are only so-so. i have a first at like 6.5 and a second at over 7 i think…crappy rates. i coud probably push hard for them to drop those to very aggressive rates..

but i’m not going to makei t recourse debt. if they want to play that game, i can just tell them to come get the house. in the end, they lose harder than I do. which is why i think an effective negotiator has them over a barrel and can dictate terms.

it’s not about being fair or upstanding anymore. it’s about taking advantage of the situation to do better for yourself – it’s not illegal – it’s business.

[23109VC]

everyone here told me not to buy. i did. shame on me. but I could care less at this point about being “the good guy” and just paying on my loan. in my opnion, that would be the dumb schmuck way to do it.

in this game, being nice nd upstanding gets you nothing. if the tables were turned, and I fell on hard times, and my house was worth twice what I paid, the banks would froth at the mouth to kcik me out, sell it, and pocket the money. now that it’s the reverse, why should I be “mr nice guy” and just take it up the a$$.

housin prices got run up b/c of these frickin banks, and b/c of morons who bought what they coudlnt’ buy. yeah, I bought it. but why should I pay the high inflated price, and when it all collapses, just hold hte bag and take it while everyone else gets a freebie.

in the end, I can just milk it for a year, then walk away. i have some rich relatives who could buy me a house for cash and carry paper. i could just rent for a while and repair my credit. i’m at the point where I honestly don’t care.

if I stay in myh ouse, lose my house, rent a house – given everything going on with the economy, the housing market, I don’t care anymore. i may have gotten caught up in that whole” i’ve got to own a house” thing, and now i’ve snapped out of it and relaize it’s just a box i live in, and as far as I’m concerned, i’m just looking to pay as little as possible for the nicest place to live.

if staying in my house ends up making sense, I’ll do it. but when you have a mortgage amount of approx $350k and your house is worth $200k, staying in the house might actually be the STUPID thing to do. i have a 100% non recourse loan. I can pack up my stuff, walk away, and the bank takes it up the a$$ not me. my credit gets screwed, but i really dont’ care. hal fthe country will have scrwed up credit by the time this is said and done with, maybe more than 50%…

i’m trying to view this from a rational standpoint. i’m envisioning that there is going to come a point where my house price will go so low, that if I were to sit down with a financial planner, economic advisor – and explained my situation they woudl say “dump your house”. that is the SMART thing to do. let the bank eat the loss. rent something else.

it realistically may be that I would be AHEAD financially if I were to let my credit get hit, spend less oney on a rental, and pocket money, repair my creidt, and then rebuy later when prices are more rational. VS suck it up an stay/pay and wait 15 years to see any equity….

i made the bed, I’m lying in it. I’m not blaming others. I’m not a “victim” – but I do feel a sense of frustration that as a hard working productive member of society who got caught up i the “buy the American dream” and boght a home that I COULD afford..I have a big payment but I have a big salary (relative to the general public) I”m sure many of you are far better off than me..I don’t mean it in an arrogant way..just that I earn good money and I bought a hosue with a 30 yr fixed that I CAN afford. but the prices were blown out of proportio nby all the morons who bought what they coudl not afford.

now prices are collapsing. and b/c the dumb banks let me in wiht 100% financing, I have the option to just walk and lose no money. just my credit..so at some point, you ahve to seriously consider that option.

if the bank will renegotiate with me and make it worthwhile to stay, great. if not, they can frickin have it.

now I don’t know about temecula guys statements that banks aren’t really giving any one anything. if they say they will convert my 30 yr fixed P&I loan into an interst only..that gets me nothign excpet saving montly monty and effectivel make me like a long term renter…

now if they would actually reduce my principal, just write off part of what I owe, and/or lower my int rate, that would be great. my rates now are only so-so. i have a first at like 6.5 and a second at over 7 i think…crappy rates. i coud probably push hard for them to drop those to very aggressive rates..

but i’m not going to makei t recourse debt. if they want to play that game, i can just tell them to come get the house. in the end, they lose harder than I do. which is why i think an effective negotiator has them over a barrel and can dictate terms.

it’s not about being fair or upstanding anymore. it’s about taking advantage of the situation to do better for yourself – it’s not illegal – it’s business.

[23109VC]

everyone here told me not to buy. i did. shame on me. but I could care less at this point about being “the good guy” and just paying on my loan. in my opnion, that would be the dumb schmuck way to do it.

in this game, being nice nd upstanding gets you nothing. if the tables were turned, and I fell on hard times, and my house was worth twice what I paid, the banks would froth at the mouth to kcik me out, sell it, and pocket the money. now that it’s the reverse, why should I be “mr nice guy” and just take it up the a$$.

housin prices got run up b/c of these frickin banks, and b/c of morons who bought what they coudlnt’ buy. yeah, I bought it. but why should I pay the high inflated price, and when it all collapses, just hold hte bag and take it while everyone else gets a freebie.

in the end, I can just milk it for a year, then walk away. i have some rich relatives who could buy me a house for cash and carry paper. i could just rent for a while and repair my credit. i’m at the point where I honestly don’t care.

if I stay in myh ouse, lose my house, rent a house – given everything going on with the economy, the housing market, I don’t care anymore. i may have gotten caught up in that whole” i’ve got to own a house” thing, and now i’ve snapped out of it and relaize it’s just a box i live in, and as far as I’m concerned, i’m just looking to pay as little as possible for the nicest place to live.

if staying in my house ends up making sense, I’ll do it. but when you have a mortgage amount of approx $350k and your house is worth $200k, staying in the house might actually be the STUPID thing to do. i have a 100% non recourse loan. I can pack up my stuff, walk away, and the bank takes it up the a$$ not me. my credit gets screwed, but i really dont’ care. hal fthe country will have scrwed up credit by the time this is said and done with, maybe more than 50%…

i’m trying to view this from a rational standpoint. i’m envisioning that there is going to come a point where my house price will go so low, that if I were to sit down with a financial planner, economic advisor – and explained my situation they woudl say “dump your house”. that is the SMART thing to do. let the bank eat the loss. rent something else.

it realistically may be that I would be AHEAD financially if I were to let my credit get hit, spend less oney on a rental, and pocket money, repair my creidt, and then rebuy later when prices are more rational. VS suck it up an stay/pay and wait 15 years to see any equity….

i made the bed, I’m lying in it. I’m not blaming others. I’m not a “victim” – but I do feel a sense of frustration that as a hard working productive member of society who got caught up i the “buy the American dream” and boght a home that I COULD afford..I have a big payment but I have a big salary (relative to the general public) I”m sure many of you are far better off than me..I don’t mean it in an arrogant way..just that I earn good money and I bought a hosue with a 30 yr fixed that I CAN afford. but the prices were blown out of proportio nby all the morons who bought what they coudl not afford.

now prices are collapsing. and b/c the dumb banks let me in wiht 100% financing, I have the option to just walk and lose no money. just my credit..so at some point, you ahve to seriously consider that option.

if the bank will renegotiate with me and make it worthwhile to stay, great. if not, they can frickin have it.

now I don’t know about temecula guys statements that banks aren’t really giving any one anything. if they say they will convert my 30 yr fixed P&I loan into an interst only..that gets me nothign excpet saving montly monty and effectivel make me like a long term renter…

now if they would actually reduce my principal, just write off part of what I owe, and/or lower my int rate, that would be great. my rates now are only so-so. i have a first at like 6.5 and a second at over 7 i think…crappy rates. i coud probably push hard for them to drop those to very aggressive rates..

but i’m not going to makei t recourse debt. if they want to play that game, i can just tell them to come get the house. in the end, they lose harder than I do. which is why i think an effective negotiator has them over a barrel and can dictate terms.

it’s not about being fair or upstanding anymore. it’s about taking advantage of the situation to do better for yourself – it’s not illegal – it’s business.

[23109VC]

everyone here told me not to buy. i did. shame on me. but I could care less at this point about being “the good guy” and just paying on my loan. in my opnion, that would be the dumb schmuck way to do it.

in this game, being nice nd upstanding gets you nothing. if the tables were turned, and I fell on hard times, and my house was worth twice what I paid, the banks would froth at the mouth to kcik me out, sell it, and pocket the money. now that it’s the reverse, why should I be “mr nice guy” and just take it up the a$$.

housin prices got run up b/c of these frickin banks, and b/c of morons who bought what they coudlnt’ buy. yeah, I bought it. but why should I pay the high inflated price, and when it all collapses, just hold hte bag and take it while everyone else gets a freebie.

in the end, I can just milk it for a year, then walk away. i have some rich relatives who could buy me a house for cash and carry paper. i could just rent for a while and repair my credit. i’m at the point where I honestly don’t care.

if I stay in myh ouse, lose my house, rent a house – given everything going on with the economy, the housing market, I don’t care anymore. i may have gotten caught up in that whole” i’ve got to own a house” thing, and now i’ve snapped out of it and relaize it’s just a box i live in, and as far as I’m concerned, i’m just looking to pay as little as possible for the nicest place to live.

if staying in my house ends up making sense, I’ll do it. but when you have a mortgage amount of approx $350k and your house is worth $200k, staying in the house might actually be the STUPID thing to do. i have a 100% non recourse loan. I can pack up my stuff, walk away, and the bank takes it up the a$$ not me. my credit gets screwed, but i really dont’ care. hal fthe country will have scrwed up credit by the time this is said and done with, maybe more than 50%…

i’m trying to view this from a rational standpoint. i’m envisioning that there is going to come a point where my house price will go so low, that if I were to sit down with a financial planner, economic advisor – and explained my situation they woudl say “dump your house”. that is the SMART thing to do. let the bank eat the loss. rent something else.

it realistically may be that I would be AHEAD financially if I were to let my credit get hit, spend less oney on a rental, and pocket money, repair my creidt, and then rebuy later when prices are more rational. VS suck it up an stay/pay and wait 15 years to see any equity….

i made the bed, I’m lying in it. I’m not blaming others. I’m not a “victim” – but I do feel a sense of frustration that as a hard working productive member of society who got caught up i the “buy the American dream” and boght a home that I COULD afford..I have a big payment but I have a big salary (relative to the general public) I”m sure many of you are far better off than me..I don’t mean it in an arrogant way..just that I earn good money and I bought a hosue with a 30 yr fixed that I CAN afford. but the prices were blown out of proportio nby all the morons who bought what they coudl not afford.

now prices are collapsing. and b/c the dumb banks let me in wiht 100% financing, I have the option to just walk and lose no money. just my credit..so at some point, you ahve to seriously consider that option.

if the bank will renegotiate with me and make it worthwhile to stay, great. if not, they can frickin have it.

now I don’t know about temecula guys statements that banks aren’t really giving any one anything. if they say they will convert my 30 yr fixed P&I loan into an interst only..that gets me nothign excpet saving montly monty and effectivel make me like a long term renter…

now if they would actually reduce my principal, just write off part of what I owe, and/or lower my int rate, that would be great. my rates now are only so-so. i have a first at like 6.5 and a second at over 7 i think…crappy rates. i coud probably push hard for them to drop those to very aggressive rates..

but i’m not going to makei t recourse debt. if they want to play that game, i can just tell them to come get the house. in the end, they lose harder than I do. which is why i think an effective negotiator has them over a barrel and can dictate terms.

it’s not about being fair or upstanding anymore. it’s about taking advantage of the situation to do better for yourself – it’s not illegal – it’s business.

[23109VC]

i believe this. while there could be a catch, such as making the debt recourse, or some other catch – prepayment penalties? whatever it is – the banks are screwed.

i bought my temecula house for $350k thinking it was such a smoking deal. 1900 sq ft. it is a very nice house and I like it, but the house next to me just went into foreclosure/bank owned and the bank is asking $299k and THAT house is 2500sq ft. so more space, far less money. who knows what it will ultimately sell for.. 250-275k?

making my house worth what?? $200k?

why in the hell woudl the bank want to foreclose on me when they KNOW that they have a $350k loan and they can only get maybe $200k PLUS COSTS to foreclose….

if lowering the payments by $1000/month or whatever keeps people in the home – they will do it b/c the alternative is even worse.

i’m one of those people who CAN afford to stay, does pay on time, am responsible, bought a house within my means… and it pisses me off to see idiots who bought a hosue they had no busines buying, aon an ARM, now cry foul and get their loan % rate, principle all whacked to nothing… b/c they were stupid.

that is such BS. so you know what, why not do it too? i am really thinking of not apying my mortgage. what will happen. the bank is’nt going to foreclose on me. they would lose over $150k. they will threaten me, try to scaer me into paying, but ultimately, if i say “f**K you” and I become a jerk who manipulates the system – guess what, they will renegotiate with me, reduce my int rate, reduce my balnce, they will do something to keep me in the house.

it’s a system that drives good responsible people to do things they normally wouldn’t do. but if the “system” is goign to reward losers – then why be a good guy and get royally screwed?

[Author]

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