Foreclosure

InDaShop · Nov 6, 2008

David said:
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.

EXACTLY

David the man of few word, but when he speaks you listen as its the truth.

tonyt · Nov 6, 2008

For one thing, the mortgage is not 100% the buyers responsibility. Some of this fails on the bank, the banks are the ones that gave out shitty loans for overvalued houses, they deserve some of the responsibility

say what???? not your responsibility???? the **** it isn't. YOU SIGNED on the dotted line. NOBODY forced you to take a loan. everyone else should pay because you were too stupid to know that the real estate market is cyclical, just like everything in the economy. There was ALWAYS the possiblity that when you wanted to sell your house the market would be down.

the bank didn't knock on your ****ing door and twist your arm to take the loan.

personal responsibility has gone to **** in this country.

btw, I'm using the "you" term generically. not specifically directed at you.

Welderd · Nov 6, 2008

David said:
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.

agreed it's bogus situation with out integrity

but the question was.

financially - where would the break even point be versus the credit hit you would take.
Wyatt says that you still owe them the rest of the loan - I'm not so sure that's true and would like to find out. If it is true then at no point could this be financially a good thing.

6uldv8 · Nov 6, 2008

I bought a large commercial building several years ago with big big plans. Nothing went exactly as planned. For the past 4 years I've used every penny I had and every toy I had has been sold (notice I'm rigless) to continue paying my loan. I've never once considered bailing out! I've never once considered it the banks fault...they merely bought into my dream. The only things I have focused on were...trying to open another business.....trying to sell it....trying to rent it....trying to find enough jobs to fill my 24 hour day so I could earn enough to pay for it. Thank goodness it recently leased to what appears to be a good business and a good man. I'll never recover my losses and I'll never be as well off as I once was but I can sleep at night knowing I've never cheated or welched on a loan! I don't understand the logic at all.

Welderd · Nov 6, 2008

tonyt said:
say what???? not your responsibility???? the **** it isn't. YOU SIGNED on the dotted line. NOBODY forced you to take a loan. everyone else should pay because you were too stupid to know that the real estate market is cyclical, just like everything in the economy. There was ALWAYS the possiblity that when you wanted to sell your house the market would be down.

the bank didn't knock on your ****ing door and twist your arm to take the loan.

personal responsibility has gone to **** in this country.

btw, I'm using the "you" term generically. not specifically directed at you.

I guess I'm looking at it as if I loaned out the money -

I sure as **** would make sure I got some collateral that would cover it. EX: back in the day - I give a buddy something worth $500 to use/sell whatever, well he knows if **** went wrong I'd get his brand new BMX bike or whatever. If someone didn't have something to cover what was being loaned - it didn't get loaned. If you loaned it out anyway and got burnt, well then you got burnt and it was your own damn fault.

InDaShop · Nov 6, 2008

rockwild said:
Wyatt says that you still owe them the rest of the loan - I'm not so sure that's true and would like to find out. If it is true then at no point could this be financially a good thing.

Call your banker, and find out. Query it on Motley Fool, orGoogle, or any gazillion financial websites. You will owe, and they will come after you. Why do you think house fires are up over 400% over this same time last year. Because insurance covers the note, burn the house, and pray you covered your tracks on the arson and insurance fraud.

Vehicle fires in Harris County (Houston) is up 300% over 2007. But flooded vehicles takes the cake. I forget this number but it was very high the number of vehicles flooded out in IKE at locations over 15 miles from their residence. Apparently people were driving their cars down to the flood zone ahead of the storm and leaving them to get destroyed by the storm surge.

Welderd · Nov 6, 2008

6uldv8 said:
I bought a large commercial building several years ago with big big plans. Nothing went exactly as planned. For the past 4 years I've used every penny I had and every toy I had has been sold (notice I'm rigless) to continue paying my loan. I've never once considered bailing out! I've never once considered it the banks fault...they merely bought into my dream. The only things I have focused on were...trying to open another business.....trying to sell it....trying to rent it....trying to find enough jobs to fill my 24 hour day so I could earn enough to pay for it. Thank goodness it recently leased to what appears to be a good business and a good man. I'll never recover my losses and I'll never be as well off as I once was but I can sleep at night knowing I've never cheated or welched on a loan! I don't understand the logic at all.

As I assume most honest hard working joe's would think

funny that you you said "welched on a loan" - just put 2 and 2 together. Worst I ever got burnt on a loan was by Mr. Welch back when I was ~17!!! molaugh

damn shoulda seen it comin!! molaugh

Welderd · Nov 6, 2008

InDaShop said:
Call your banker, and find out. Query it on Motley Fool, orGoogle, or any gazillion financial websites. You will owe, and they will come after you. Why do you think house fires are up over 400% over this same time last year. Because insurance covers the note, burn the house, and pray you covered your tracks on the arson and insurance fraud.

Vehicle fires in Harris County (Houston) is up 300% over 2007. But flooded vehicles takes the cake. I forget this number but it was very high the number of vehicles flooded out in IKE at locations over 15 miles from their residence. Apparently people were driving their cars down to the flood zone ahead of the storm and leaving them to get destroyed by the storm surge.

so it should have been an insurance bailout not a financial institution bailout!

cadpwrdyj · Nov 6, 2008

I just go by Karma...and I state this from a family member of mine, that their mom helped them get out of a bad situation and gave them $35,000 to get into a $70,000 house. Well that person turned around and still would not help themselves so they let the house get foreclosed and said mom lost her $35,000. Now guess what that piece of property is/was worth. It was sitting right where Best Buy is now in F'dale if that gives you any clue...In my opinion I would have to exhaust all resources before I foreclosed, because if I didn't something would come back to bite me in the ass. Mind you that family member not only lost out on money herself as well as the mom, but she lost all respect and anymore help from the mom and that is far worse....

blacksheep10 · Nov 6, 2008

David said:
Blaming the bank because YOU bought a house that YOU couldn't afford is asinine.

exactly what I said. if you did this, you are in the stupid group.

cbchambles · Nov 6, 2008

Sounds like someone is over extended and throwing out hypotheticals to get ideas..... :popcorn:

Beyer · Nov 6, 2008

blacksheep10 said:
exactly what I said. if you did this, you are in the stupid group.

Pretty much sums it up. Don't be one of 'those' guys. :

Willymutt · Nov 6, 2008

cbchambles said:
Sounds like someone is over extended and throwing out hypotheticals to get ideas.....

I don't know any of the financials, but this one is more than likely not even close. Rockwild and his wife are pretty good with money.

vanguard · Nov 6, 2008

rockwild said:
Now here's where the numbers could be changed, so play with them and see where the breaking point is

Current house paid = 200k
Current value = ?? say 150k
Loan left = say 140k

First, it looks to me like you could sell the house for $150k, pay off the loan, and you'll be fine. Fine a cheap realitor and I don't even understand the motivation for welching on your debt. Second, if you still owe the bank money after they foreclose you're still in trouble because they'll start tracking you down through the court system. Third, sometimes investments go bad. When they do you lose money. Welcome to the world of buying stuff. Trying to rip off the bank to run away from your loss won't work. They've been at this longer than you have.

Willymutt · Nov 6, 2008

I may be missing something here, but I don't think this was posted as a possible plan for his house for sale. It was brought up because of some stories coming out of CA and the such where the foreclosure rate is super high right now. I do see where some immoral people would go about doing this. Just like Wyatt said insurance fraud is really high right now. People are just stupid sometimes.

The one thing I disagree on is that the bank holds some responsibility. People have to learn to take responsibility for their actions and take care of themselves. The banks did screw up and got greedy. They saw an easy way to get money from suckers while the market was up. It was a gamble they took and I don't think they should be bailed out because the gamble didn't pay off. I also don't think that people that are overextended should get any special treatment. It pisses me off that BofA is going to work with people who are behind on payments to keep them in the house. I pay my mortage on time without any issues because I didn't borrow more than I could afford. Why can't I be rewarded? Instead I'm going to get penalized.

Welderd · Nov 6, 2008

my actual situation to let you guys know

bought my house 5 yrs ago - put 20% down
I moved to IL about 2 years ago for a job
put my house up for sale for what I paid for it plus realtor cost - to break even
didn't find anything in IL that I liked so I moved back
total time on market 6months - the last 2 we tried to rent it
No offers, not much interest

Now I'm moving to MO to be close to family and a much better job
start new job in Feb
House has been on the market for about a month so far - not much interest
We've looked alot in the area we are moving - houses for cheap but I want a shop too. (Have one now)
I can easily get a nicer house with room for a shop in a nice area for what I paid on my house.
I can afford to pay for both indefinitely but would mean no shop building and less trips - no biggie

I can do all this with my wife not working and she could get a job and pay for the first house easily.

House #1 will be 500miles from house #2
I have ~40% of my purchase price in equity

I'm not going to let it get foreclosed on

We are planning on living with one the parents if we need to

But the market could take a dump even more and I'll have 2 mortgage payments and no hope of selling house 1
So for now we're not buying house #2 but really, really, really want to

InDaShop · Nov 6, 2008

Then I wouldn't sweat it. If you're moving to MO they will let you live out of your "RV" but only if you put it on blocks. This will also help the fewer wheeling trips problem as well.

If you can afford to make both mortgages then thats what I'd do. If you could find a renter for house #1, even if below going rent rate its free money, they are paying on your mortgage. I.E. something is better than nothing.

I just wouldnt sweat this market if thats your financial situation. Continue paying like you have been, nothing has changed in the market to effect that. The valuation price on your home? Well that is what it is, but you haven't lost REAL money yet, that is just on paper, and unrealized. Keep it, this economy will turn around.

kid rok · Nov 6, 2008

First things first, if you walk away and let the bank foreclose on house #1 -- there will not be a house #2 in your future. The lending industry has tighted the reigns on money, and you really have to have great credit and some money to put down in order to purchase. Your credit will have the foreclosure on it for 10 years and when you do go to buy that next house, you will need at least 20 percent to put down, maybe even 30...

I would suggest you call your lender and discuss your options. You need hard facts ie comps that will show your housing values have reduced so dramatically... Next talk to a real estate agent who has worked short sales before. A short sale is one in which the bank is willing to take less on the note so that you DON'T end up foreclosing. Take note, MANY banks are having you sign an additional notes prior to the closing to that you will pay them back the loss difference over xx years with great terms and extrememly very LOW interest. My wife has done several deals like this, so if you are not in the Atlanta area, she can refer you to someone in your area.

cbchambles · Nov 7, 2008

Sounds like the hypothetical idea getting isn't too far off... That is why the US economy is so ****ed up right now. Americans finance the **** out of everything. Everyone has to have it now. No one is patient and actually saves for anything any more. Lets get a loan and by some **** that isn't essential to living, and buy it now . You have to live with in your means. Sit down with your checking account and actually look at what you are spending your money on. Cut out the bullshit and save a little money, or dig your self out of your hole then start saving. As far as the banking industry goes its not their problem. You wanted the loan you were approved its on your ass. I am in the process of buying a home now. Before I even started looking I got approved for a loan. I didn't want to wast anyones time or try to figure out how to make a forclosure work. I also have a house in Birmingham. I rented it before I even thought about buying a new house. I am in the same boat just don't be a dip **** and be smart with your money. Start your job in Feb wait 6 moths to make sure you like it and don't want to move back to Al again then start thinking about buying a house. THIS IS THE STUPIDEST **** TO EVEN THINK ABOUT I CAN'T BELEAVE I WASTED TIME GETTING BOTHERED BY THIS. GROW UP AND HANDLE YOUR OBLIGATIONS AS A MAN. I don't care if this applies to your or not stop ****ing American's that handle their obligations.........****......Sorry for my rant.....it wont happen again.....****

Welderd · Nov 7, 2008

InDaShop said:
Then I wouldn't sweat it. If you're moving to MO they will let you live out of your "RV" but only if you put it on blocks. This will also help the fewer wheeling trips problem as well.

If you can afford to make both mortgages then thats what I'd do. If you could find a renter for house #1, even if below going rent rate its free money, they are paying on your mortgage. I.E. something is better than nothing.

I just wouldnt sweat this market if thats your financial situation. Continue paying like you have been, nothing has changed in the market to effect that. The valuation price on your home? Well that is what it is, but you haven't lost REAL money yet, that is just on paper, and unrealized. Keep it, this economy will turn around.

I'm not sweating it - much

We've got both sets of parents where we are moving and they are pretty much all retired, they can babysit and my wife can work to make some more money. They can also bail us out if we need it.

I was just curious what the laws and penalties were for foreclosures is all