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ltokuda
ParticipantDJNinSD, one more thing. I would advise against trying to work out a loan adjustment with the lender. The reason is that you seem to be in way over your head. It doesn’t sound like you have the background knowledge to be able to analyze the economics of owning a home. That’s how you got into this terrible situation in the first place. So I’m afraid that if you start negotiating with the lender, you might agree to something that doesn’t make any financial sense.
My advice is that after you walk away from your home, you continue to read piggington’s and learn more about real estate. Continue to educate yourself. One day, there might be good opportunities for you to become a homeowner again. When that day comes, you’ll have the knowledge necessary to see those good values and make your move. Until then, save up and take care of your family. I wish you the very best.
Participant“It would feel, to me, like stealing if I were to stop making the payments completely. I did enter into an agreement with the lender and I should continue to meet that agreement.”
DJNinSD, I think you’re looking at this the wrong way. You did enter into an agreement with the lender. Part of that agreement was that if you stopped making payments, they could take away your home. Remember, both you and your lender agreed to those terms. So if you stop making payments, walk out of your house, and give the keys to the lender, then you are fulfilling the terms of your agreement. Your lender thought those terms were fair when they gave you the loan. There’s no reason why those terms aren’t fair now.
Realistically, given your mortgage to income ratio, you should have never bought that house … and the lender never should have given you that loan. It was a bad business deal for both of you. But that’s in the past. Learn from it and move on. You are where you are now and you have to make the best of the situation.
Your number one priority should be your family. When it comes down to it, no one else is going to look out for them except for you. You should definitely do what’s best for your family.
At this point there is no realistic way that you’ll ever be able to pay off your house. You can either default now or keep making payments until you default later. My advice would be to walk out now and use the money you save to take care of your family. This solution is both fair to the lender and in the best interest of your family.
Participant“It would feel, to me, like stealing if I were to stop making the payments completely. I did enter into an agreement with the lender and I should continue to meet that agreement.”
DJNinSD, I think you’re looking at this the wrong way. You did enter into an agreement with the lender. Part of that agreement was that if you stopped making payments, they could take away your home. Remember, both you and your lender agreed to those terms. So if you stop making payments, walk out of your house, and give the keys to the lender, then you are fulfilling the terms of your agreement. Your lender thought those terms were fair when they gave you the loan. There’s no reason why those terms aren’t fair now.
Realistically, given your mortgage to income ratio, you should have never bought that house … and the lender never should have given you that loan. It was a bad business deal for both of you. But that’s in the past. Learn from it and move on. You are where you are now and you have to make the best of the situation.
Your number one priority should be your family. When it comes down to it, no one else is going to look out for them except for you. You should definitely do what’s best for your family.
At this point there is no realistic way that you’ll ever be able to pay off your house. You can either default now or keep making payments until you default later. My advice would be to walk out now and use the money you save to take care of your family. This solution is both fair to the lender and in the best interest of your family.
Participant“It would feel, to me, like stealing if I were to stop making the payments completely. I did enter into an agreement with the lender and I should continue to meet that agreement.”
DJNinSD, I think you’re looking at this the wrong way. You did enter into an agreement with the lender. Part of that agreement was that if you stopped making payments, they could take away your home. Remember, both you and your lender agreed to those terms. So if you stop making payments, walk out of your house, and give the keys to the lender, then you are fulfilling the terms of your agreement. Your lender thought those terms were fair when they gave you the loan. There’s no reason why those terms aren’t fair now.
Realistically, given your mortgage to income ratio, you should have never bought that house … and the lender never should have given you that loan. It was a bad business deal for both of you. But that’s in the past. Learn from it and move on. You are where you are now and you have to make the best of the situation.
Your number one priority should be your family. When it comes down to it, no one else is going to look out for them except for you. You should definitely do what’s best for your family.
At this point there is no realistic way that you’ll ever be able to pay off your house. You can either default now or keep making payments until you default later. My advice would be to walk out now and use the money you save to take care of your family. This solution is both fair to the lender and in the best interest of your family.
Participant“It would feel, to me, like stealing if I were to stop making the payments completely. I did enter into an agreement with the lender and I should continue to meet that agreement.”
DJNinSD, I think you’re looking at this the wrong way. You did enter into an agreement with the lender. Part of that agreement was that if you stopped making payments, they could take away your home. Remember, both you and your lender agreed to those terms. So if you stop making payments, walk out of your house, and give the keys to the lender, then you are fulfilling the terms of your agreement. Your lender thought those terms were fair when they gave you the loan. There’s no reason why those terms aren’t fair now.
Realistically, given your mortgage to income ratio, you should have never bought that house … and the lender never should have given you that loan. It was a bad business deal for both of you. But that’s in the past. Learn from it and move on. You are where you are now and you have to make the best of the situation.
Your number one priority should be your family. When it comes down to it, no one else is going to look out for them except for you. You should definitely do what’s best for your family.
At this point there is no realistic way that you’ll ever be able to pay off your house. You can either default now or keep making payments until you default later. My advice would be to walk out now and use the money you save to take care of your family. This solution is both fair to the lender and in the best interest of your family.
Participant“It would feel, to me, like stealing if I were to stop making the payments completely. I did enter into an agreement with the lender and I should continue to meet that agreement.”
DJNinSD, I think you’re looking at this the wrong way. You did enter into an agreement with the lender. Part of that agreement was that if you stopped making payments, they could take away your home. Remember, both you and your lender agreed to those terms. So if you stop making payments, walk out of your house, and give the keys to the lender, then you are fulfilling the terms of your agreement. Your lender thought those terms were fair when they gave you the loan. There’s no reason why those terms aren’t fair now.
Realistically, given your mortgage to income ratio, you should have never bought that house … and the lender never should have given you that loan. It was a bad business deal for both of you. But that’s in the past. Learn from it and move on. You are where you are now and you have to make the best of the situation.
Your number one priority should be your family. When it comes down to it, no one else is going to look out for them except for you. You should definitely do what’s best for your family.
At this point there is no realistic way that you’ll ever be able to pay off your house. You can either default now or keep making payments until you default later. My advice would be to walk out now and use the money you save to take care of your family. This solution is both fair to the lender and in the best interest of your family.
Participant“A small change in traffic and spending is the difference between a profit and a loss for many stores.”
I talked to the owner of my favorite Mexican restaurant: El Burrito Jr. He said that he’s noticed a slow down in business and that he thought we were in a recession. Looks like I’m going to have to eat there twice as much to help out!
Participant“A small change in traffic and spending is the difference between a profit and a loss for many stores.”
I talked to the owner of my favorite Mexican restaurant: El Burrito Jr. He said that he’s noticed a slow down in business and that he thought we were in a recession. Looks like I’m going to have to eat there twice as much to help out!
Participant“A small change in traffic and spending is the difference between a profit and a loss for many stores.”
I talked to the owner of my favorite Mexican restaurant: El Burrito Jr. He said that he’s noticed a slow down in business and that he thought we were in a recession. Looks like I’m going to have to eat there twice as much to help out!
Participant“A small change in traffic and spending is the difference between a profit and a loss for many stores.”
I talked to the owner of my favorite Mexican restaurant: El Burrito Jr. He said that he’s noticed a slow down in business and that he thought we were in a recession. Looks like I’m going to have to eat there twice as much to help out!
Participant“A small change in traffic and spending is the difference between a profit and a loss for many stores.”
I talked to the owner of my favorite Mexican restaurant: El Burrito Jr. He said that he’s noticed a slow down in business and that he thought we were in a recession. Looks like I’m going to have to eat there twice as much to help out!
Participant“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”
That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?
Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.
Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.
Participant“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”
That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?
Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.
Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.
Participant“Underwriters aren’t stupid and are looking for people who are committing loan fraud. Once they catch a few of these “smart” people and prosecute them, fewer people will be considering it.”
That’s going to be an interesting development. In a strict sense, I don’t think this is loan fraud. The borrower bought the first house with the intent of paying off the loan. He buys the second house with the intent of paying off the second loan. The lender for the first house will get screwed by the default. But if it was a no recourse loan, what can the first lender do?
Also, it seems to make financial sense for the lender of the second home to approve the loan (assuming 25% downpayment or so). The second lender will see a borrower with good credit, a large downpayment, and have as collateral a “rental” unit that is probably cash flow positive. Even if the second lender suspected that the first lender would get screwed, would it matter? As long as the second lender believed that it would make money on the deal, I think the deal would go through.
Of course, most people won’t be in the position to be able to do this. But some definitely will and it’ll be interesting to see how it all plays out.
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