[jonnycsd]

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

The whole idea of a capitalist system is that people who make poor capital investment decisions with THIER money do not get to keep it – rather capital accures to others who make good decisions and flees those who make poor ones. The lenders who abdicated thier responsibilities and MISALLOCATED thier capital into BAD LOANS should loose it to people who can be better shepards.

Dotherightthing – it is not your responsibility that some idiot lender made the decisions they did with THIER money. You should act within the boundaries of the law to maximize your outcome. It is a business question, not a moral question. If you doubt that it is all about business, ask yourself how many days reprieve on foreclosure and eviction that any lender would give to people whith hardship if it was going to cost them money? NOT ONE DAY. They would (and DO!) boot the bewlidered elderly coupe onto the street. They would (and DO!) have the sherrif remove cyring children and pile the toys and clothes on the curb.

Ironman’s idealism has no bearing on the reality of this industry. It is ruthless and you should play savy hardball.

[jonnycsd]

My understanding is that (in California) if you borrow money to purchase a home then default the lender can only take back the property.

However, if you borrow money for other things (furniture, paying off other debt, spending sprees, etc.) then, even if the home is the collateral, the lender can get a judgement against you in civil court and place liens on your other property, garnish wages, and attach (drain) your bank and savings accounts.

Also, the updated bankruptcy laws (as of 2005) make it much harder to discharge such debts.

You might want to speak with an attorney before maxing out your HELOC.

[jonnycsd]

My understanding is that (in California) if you borrow money to purchase a home then default the lender can only take back the property.

However, if you borrow money for other things (furniture, paying off other debt, spending sprees, etc.) then, even if the home is the collateral, the lender can get a judgement against you in civil court and place liens on your other property, garnish wages, and attach (drain) your bank and savings accounts.

Also, the updated bankruptcy laws (as of 2005) make it much harder to discharge such debts.

You might want to speak with an attorney before maxing out your HELOC.

[jonnycsd]

My understanding is that (in California) if you borrow money to purchase a home then default the lender can only take back the property.

However, if you borrow money for other things (furniture, paying off other debt, spending sprees, etc.) then, even if the home is the collateral, the lender can get a judgement against you in civil court and place liens on your other property, garnish wages, and attach (drain) your bank and savings accounts.

Also, the updated bankruptcy laws (as of 2005) make it much harder to discharge such debts.

You might want to speak with an attorney before maxing out your HELOC.

[jonnycsd]

My understanding is that (in California) if you borrow money to purchase a home then default the lender can only take back the property.

However, if you borrow money for other things (furniture, paying off other debt, spending sprees, etc.) then, even if the home is the collateral, the lender can get a judgement against you in civil court and place liens on your other property, garnish wages, and attach (drain) your bank and savings accounts.

Also, the updated bankruptcy laws (as of 2005) make it much harder to discharge such debts.

You might want to speak with an attorney before maxing out your HELOC.

[jonnycsd]

My understanding is that (in California) if you borrow money to purchase a home then default the lender can only take back the property.

However, if you borrow money for other things (furniture, paying off other debt, spending sprees, etc.) then, even if the home is the collateral, the lender can get a judgement against you in civil court and place liens on your other property, garnish wages, and attach (drain) your bank and savings accounts.

Also, the updated bankruptcy laws (as of 2005) make it much harder to discharge such debts.

You might want to speak with an attorney before maxing out your HELOC.

[jonnycsd]

Not a complete answer, but may be a piece of the puzzle of why they choose to sit on empty homes.

” . . . in the case of a bad mortgage, the bank will eventually take the house back and have to wait to resell it before a loss is recognized.”

If this is what is looks like, there are a bunch of investors / banks / regulators / politicians who have no idea just how much money has been lost.

http://www.housingwire.com/2008/06/19/the-npa-numbers-game/

[jonnycsd]

Not a complete answer, but may be a piece of the puzzle of why they choose to sit on empty homes.

” . . . in the case of a bad mortgage, the bank will eventually take the house back and have to wait to resell it before a loss is recognized.”

If this is what is looks like, there are a bunch of investors / banks / regulators / politicians who have no idea just how much money has been lost.

http://www.housingwire.com/2008/06/19/the-npa-numbers-game/

[jonnycsd]

Not a complete answer, but may be a piece of the puzzle of why they choose to sit on empty homes.

” . . . in the case of a bad mortgage, the bank will eventually take the house back and have to wait to resell it before a loss is recognized.”

If this is what is looks like, there are a bunch of investors / banks / regulators / politicians who have no idea just how much money has been lost.

http://www.housingwire.com/2008/06/19/the-npa-numbers-game/

[jonnycsd]

Not a complete answer, but may be a piece of the puzzle of why they choose to sit on empty homes.

” . . . in the case of a bad mortgage, the bank will eventually take the house back and have to wait to resell it before a loss is recognized.”

If this is what is looks like, there are a bunch of investors / banks / regulators / politicians who have no idea just how much money has been lost.

http://www.housingwire.com/2008/06/19/the-npa-numbers-game/

[jonnycsd]

Not a complete answer, but may be a piece of the puzzle of why they choose to sit on empty homes.

” . . . in the case of a bad mortgage, the bank will eventually take the house back and have to wait to resell it before a loss is recognized.”

If this is what is looks like, there are a bunch of investors / banks / regulators / politicians who have no idea just how much money has been lost.

http://www.housingwire.com/2008/06/19/the-npa-numbers-game/

[jonnycsd]

Government’s role in the USA is income redistribution. This creates massive disincintives to work hard and save and a huge incentive to sign up to be on the receiving end of the redistribution gravy train.

Layer in massive immigration based on a lottery system rather than the merrits of the applicant, plus even larger inflows of illegal immigrants who have no interest in joining the melting pot (yet who are eligible for a full range of government services).

On top of that weigh in the fact that the public school system is in a state of total dysfunction and is unable to prepare children (imigrant or native born) for the reality of global labor competition.

And a political / social climate that puts ideology ahead of objective thinking – resulting in ebonics, creation science, bans on stem cell research, racial quotas, gender quotas, pointless wars, Nifong, bloated prison populations, ethanol fuel, 60% divorce rates, etc, etc. etc.

Add to all that the reality that wealth concentration is accellerating.

Fast forward the trend lines a few decades and you have BRAZIL. In 2050 the USA will look like Brazil in its demographc and economic composition. The middle class is already dead.

[jonnycsd]

Government’s role in the USA is income redistribution. This creates massive disincintives to work hard and save and a huge incentive to sign up to be on the receiving end of the redistribution gravy train.

Layer in massive immigration based on a lottery system rather than the merrits of the applicant, plus even larger inflows of illegal immigrants who have no interest in joining the melting pot (yet who are eligible for a full range of government services).

On top of that weigh in the fact that the public school system is in a state of total dysfunction and is unable to prepare children (imigrant or native born) for the reality of global labor competition.

And a political / social climate that puts ideology ahead of objective thinking – resulting in ebonics, creation science, bans on stem cell research, racial quotas, gender quotas, pointless wars, Nifong, bloated prison populations, ethanol fuel, 60% divorce rates, etc, etc. etc.

Add to all that the reality that wealth concentration is accellerating.

Fast forward the trend lines a few decades and you have BRAZIL. In 2050 the USA will look like Brazil in its demographc and economic composition. The middle class is already dead.

[jonnycsd]

Government’s role in the USA is income redistribution. This creates massive disincintives to work hard and save and a huge incentive to sign up to be on the receiving end of the redistribution gravy train.

Layer in massive immigration based on a lottery system rather than the merrits of the applicant, plus even larger inflows of illegal immigrants who have no interest in joining the melting pot (yet who are eligible for a full range of government services).

On top of that weigh in the fact that the public school system is in a state of total dysfunction and is unable to prepare children (imigrant or native born) for the reality of global labor competition.

And a political / social climate that puts ideology ahead of objective thinking – resulting in ebonics, creation science, bans on stem cell research, racial quotas, gender quotas, pointless wars, Nifong, bloated prison populations, ethanol fuel, 60% divorce rates, etc, etc. etc.

Add to all that the reality that wealth concentration is accellerating.

Fast forward the trend lines a few decades and you have BRAZIL. In 2050 the USA will look like Brazil in its demographc and economic composition. The middle class is already dead.

[jonnycsd]

Government’s role in the USA is income redistribution. This creates massive disincintives to work hard and save and a huge incentive to sign up to be on the receiving end of the redistribution gravy train.

Layer in massive immigration based on a lottery system rather than the merrits of the applicant, plus even larger inflows of illegal immigrants who have no interest in joining the melting pot (yet who are eligible for a full range of government services).

On top of that weigh in the fact that the public school system is in a state of total dysfunction and is unable to prepare children (imigrant or native born) for the reality of global labor competition.

And a political / social climate that puts ideology ahead of objective thinking – resulting in ebonics, creation science, bans on stem cell research, racial quotas, gender quotas, pointless wars, Nifong, bloated prison populations, ethanol fuel, 60% divorce rates, etc, etc. etc.

Add to all that the reality that wealth concentration is accellerating.

Fast forward the trend lines a few decades and you have BRAZIL. In 2050 the USA will look like Brazil in its demographc and economic composition. The middle class is already dead.

[Author]

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