Foreclosure

[Welderd]

Rob - I'm fine this is HYPOTHETICAL

 

[muchado]

Rob - I'm fine this is HYPOTHETICAL

Yep... And I fully agree wit what P said:

"You'll also be part of the "problem" on purpose I might add, with this country people all the time wanting someone else to "bail " them out."


hypothetical or not it I still think it is a ****ed way of thinking but hey that's my opinion... If you're fine then why even think about it??? So you can come out ahead at the banks espense? :

 

[Welderd]

Technically, sure you could default let the Bank foreclose on your home so on and so forth, THE issue is , that will forever be something your required to disclose when asking to borrow money and that may or may not affect were you are capable of going in life finacially. So really all moral aspects aside, its a question of if you want to carry through life, the fact that you have defaulted on a home loan.

this is the kind of answers I'm looking for

How bad would it be?

 

[P]

HYPOTHETICALLY, its a **** move... and you need to buy us all lunch laughing1

 

[P]

REAL bad short term, dont even think about getting a loan or credit on ANYTHING for along fuggin time. All your CC card rates and whatever else will suffer as well Im sure, When you are able to get a loan and they eventually start allowing you to borrow money, your gonna get shafted rate wise... Who knows how long or how shafted your going to get though

 

[B Gillespie]

The hurt put on the hypothetical person would be the severe limits on your finances and employment for the rest of your life. I would hate to know that if I wanted to buy a house, start a business, buy a new expensive car, get a high paying job, government job, school loan for a graduate degree, etc. I couldnt unless I paid cash. Investing for retirement would also be tough. Some of these people that are bailing on their loans will always be stuck exactly where they are and have a very hard time advancing. Its not that it cant be done, or the moral issues, its the limitations on life that would be the biggest factor. Lending institutions are getting very good at following and tough on the penalties of the people walking away. Wage garnishment and no savings or retirement for fear of garnishment are possibilities, as well as potential jail time. Not worth it for me.

Personally, I think its immoral and screwing everyone else as well, but thankfully everyone doesnt agree and think the way I do.

 

[Welderd]

If you're fine then why even think about it??? So you can come out ahead at the banks espense? :

Morals aside - **** yeah! get some while the getting is good!

Look at it this way - morals aside - you take a watch into the pawn shop and they give you $2000 on it. You have 30 days or whatever to pay back the $2000 or they keep your watch. You just bought the watch from a bum on the street for $200. Are you gonna pay back the 2k??? or you gonna just let them live with they're mistake for not getting enough collateral on their "loan".

Why would the housing market be any different? Why should we feel bad for these banks - they screwed up and didn't get enough down payment or collateral to protect themselves.

 

[Welderd]

Wage garnishment and no savings or retirement for fear of garnishment are possibilities, as well as potential jail time. Not worth it for me.

really they could do that?

 

[InDaShop]

Its the equivalent of filing for Bankruptcy protection these days. With the new laws you are still obligated to repay what you are filing bankruptcy against. But you get protection a stay if you will, on those debts. For a foreclosure, its not too different is my understanding. But I DO NOT REALLY KNOW THE DETAILS.

It is not as simple as just walking away. The bank will take the Foreclosed home, and resell it. What they recover is placed against your note. Whatever is still not covered, they will come after you to collect. They will get judgements against you, and work to then garnish wages. But I DO NOT REALLY KNOW THE DETAILS.

So your example.

$800k home, you owe $800k still, you walk its foreclosed, they sell it for $400k, you still owe them $400k.
The government did not bail out these type of mortgages. And more importantly we are seeing already the banks used the bailout funds for other things than to rescue their underwater mortage portfolios. One bank (PNC) used their $7.7billion to buy another bank for $5.5billion how is that bailing out their bad debt?

 

[P]

What bank is PNC ? Thats ****ing bullshit... Man that pisses me off if its true.

 

[B Gillespie]

really they could do that?

Depends on the state(s) and judge(s) involved. I could foresee some activist judges making examples out of some cases.

 

[99_tj]

Not only what Wyatt said, but if the Bank forgives the debt it is considered a gift. The value of the gift is sent to the IRS as a 1099 and you have to pay income tax on it. So say they are forgiving 400K, you would owe the IRS about 30% of that. The government will get their money one way or another.

 

[Welderd]

good info wyatt - i thought there'd be some repercussions like that

I guess I don't agree with that though - I feel the bank should be responsible for giving out an f'd up loan and shouldn't be able to come back at the individual.

the bailout was a crock of **** and is being misused. If there are these actions that the banks can take against the individuals they why did they get the bailout and not those that are being foreclosed on? Sounds to me like the banks are doing just fine and joe homeowner is getting worked over

 

[1TONZR2]

just sell the house for 140, take the 60K that is left on the loan and add it to the new loan for 140K, since that house is "worth" 200K...walla same payment, same morals, different house, different state.....nobody getts ****ed. maybe its not that easy, I dunno

Brian

 

[Welderd]

definitely not that easy, especially now. No bank would let you have a 200k note on a 140 house
but I bet that happened alot before the bubble burst and it only made it worse

 

[B Gillespie]

I dont watch TV much, but I havent noticed many home equity loan commercials, wonder why?

 

[1TONZR2]

you are basically using the 60K in the equity. the house appraises for 200 or more, cant that be worked into account.
see, I am in that boat...bought a 220K house that is now only "worth" 170K.....fawkin sucks. now the damn builders that are in our neighborhood are building lower quality, cheaper homes and more :afro: people are moving in there...fawking my hood up and keeping me from selling out. we had a plan to build and sell in 2-3 years and make some quick cabbage....not now.

 

[InDaShop]

I feel the bank should be responsible for giving out an f'd up loan and shouldn't be able to come back at the individual.

Travis-
You can not be serious?
The banks fully believe every loan they give out is legitimate, and expect repayment at an agreed interest rate (cost of borrowing money).
But just to be sure, and just in case, they need to protect their money so they have liens against the assets they have loaned money on. The bank didn't go out an decide it needed to purchase a house on CherryVale Ln in Bumfuck, Kansas. You did, and its your responsibility to have determined if you could or could not afford said property.
Banks are businesses, and well they make bad loans. Most of those loans that go bad were loaned in deception. Being the person asking for money decived the bank to procure the loan. Now there are a few of the NINJA's out there, but that is a very very small portion of the mortgage market.

Fact of the matter is if you signed your name to a martgage note thats YOUR responsibility, not the banks not the governments, YOURS. If you dont like it. Sell the property pay off as much of the note as possible, and file for Bankruptcy protection. You're credit will take a hit, but most banks will work with you and keep you out of bankruptcy. They just want their money back. If you file then they have to wait to collect their money.

Now if they foreclose, they tack all those costs associated with the repossession, and resale onto what you owe them.

Not sure if you have seen Craigslist, but there have been tons of people selling fixtures out of their homes. DOors, cabinets, waterheaters, everything for cash then letting the banks foreclose. Well guess what, the bank will still sell the house, but for less, and come after you for the difference. As you have materially reduced the value of the home.

 

[DavidsCJ7]

This is a bogus question. It cannot be answered without bringing integrity into the answer. If you can separate the two and come up with an answer that isn't influenced by integrity, well then, I would put you in the same category as all the ninjas that sit on their useless ass and let those of us WITH integrity pay their bills. Nothing comes free to a person with integrity. Someone has to pay the bill and its not going to be the bank or the insurance compay. They will just increase the rates on the rest of us, to pay for your lack of integrity. I have an expensive house. I'm sure the value of it has dropped over the past year but thats just a part of life. The market will increase again and all will be well. Blaming the bank because YOU bought a house that YOU couldn't afford is asinine. If you are just trying to come out ahead on an oversized mortgage in a buyers mortgage, you have to consider your integrity because you will be forcing all of us to pay for your lack of integrity.

 

[Welderd]

wyatt - yes I'm serious, see my pawn shop example. They're the idiots that decide how much to give and therefore should bare some of the risk.

for instance a car loan - if you go to buy a lifted truck a bank WILL NOT loan you the full amount you need to buy it. Because they can't get their money back out of it, and I don't blame them. They'll loan you want a stock truck is worth minus a down payment.

I know they are a business and all that but that being said they are making money of every single person out there and therefore they should have some risk - where the fawk is their risk? sounds to me like their just legal loan sharks only they have the government behind them so they WILL get paid.





And everyone - I'm not in this situation in the least bit - I agree it's wrong - just at first glance it seems so easy and I'm wondering why it's happening so much. If everyone is doing it, it must be the cool thing to do right? JK