It's going to be a long line, hire an attorney and have him take the deed to the bank. She then can walk away with payment in full and no bad credit.
Parva Alicia est.
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Obama Says A Baby Is A Punishment
Obama: “If they make a mistake, I don’t want them punished with a baby.”
Yup, pathetic. “I don’t like the decision I made, so I’m taking the easy road. WAH!”
Give me a break! No one cares about her except for Barney Frank????? Lady, do a little investigation! Learn who the main fools were that adamently denied there was a problem with these loans and pushed the laws that forced them to be available.
She seems to be under the misimpression that the down payment of $120,000 she made on the home represents some form of profit paid to the bank who made the mortgage loan, rather than being paid to the seller who sold the house to her.
The bank is clearly a loser financially, as the $450,000 principal amount of the loan cannot be recovered by $405,000 worth of house plus one year of mortgage payments.
And then she blames her problems on the lender -- "screw 'em", etc.
Typical liberal.
I feel for her situation, but in her blog entry she’s blaming the free market for something it didn’t do. All too common, especially these days. For starters, the housing and banking industries are anything but “unregulated.”
we got stuch with two houses right after my dad passed away in 2005, made mortgages payments on both houses by our both working 16-18 hour days most of the time, finally sold the house at $20,000 under what we owed
we lost all of our savings, 401k - everything and then some - it was horrible and I would never do it again, but I wasn’t thinking right because my father was terminally ill with melanomia
but we thought it would be unethical to just walk out on the house up in MN...to let it just go into foreclosure...there were so many times that I didn’t hink we’d make it and through the grace of God, we just barely did
Now- the one thing I’d say that is probably one of the biggest problems in this mess is that too many states have 100% home equity 2nd mortgages. We had taken on out a 2nd on our house in MN a couple of years before we sold it - back when the market was going up like crazy. My spouse was in school and we used it to pay his tuition. In MN, they allowed us to take 100% of the value-the first loan.
Here in Texas - they put a 80% cap on mortage total indebtedness after refinancing. Meaning - if you refinance in 5 years after buying your house, and your want to either refinance of get a home equity line, the total of either the first OR the first + second can not be more than 80%.
We refi’d in Tx last fall to consolidate the debt we occured through the mess we got ourselves in over 2 houses. We were lucky that we live in an area of TX where the housing prices are still good and even slightly rising. But, when we did the refi, our national bank lender told us that Texas had by far some of the least foreclosures of the country because of that 80% rule.
So see - when you put down 10% or 20% down on your house here in TX, you can’t pull it out with a home equity loan until your home value swallows it up and then some.
It’s a HUGE safety mechinism to protect homeowners from overborrowing and help in times when housing bubbles pop, but people need to still sell their house. So unless house prices drop more than 15-20%, you’d still walk away clean.
No, it doesn't seem fair. But a lot of decisions do not turn out fairly.
Banks are greedy and unfeeling? Who knew?
God forbid Barney Frank have any more to do with our financial institutions.
vaudine
What is being misunderstood here is the actual ‘value’ of the home. It is not $310,000 or anything else which the foreclosures in the neighborhood suggest. Your liquidation price is actually what you are referring to. Of, if you were a bank, that would be your ‘mark to market’ price. And now you have some idea of why banks are screwed.
If you HAD to sell your house this week because of some personal disaster, you’d be screwed and walking away would be an option. And if the bank had to get liquid immediately to make the regulators happy, they would have to discount the real estate collateral they have on the books to whatever they could get on the courthouse steps (which is essentially how you get your foreclosure prices).
There is no rational reason why banks would need to liquidate those assets in 15 days instead of 90 days. And since the SEC sets the regulations at the FASB for accounting rules which require banks to mark down the value of their assets to whatever price they could get THAT DAY!!! (how F’ing retarded, huh? But the SEC still isn’t budging).
So, the banks are essentially walking away from mortgages exactly the way you are talking about walking away from this house in Scottsdale. And when they do that, they essentially devalue all their assets to somewhere near ZERO and then there is no amount of cash they can have on hand which could balance out that kind of liability. And then JPMorgan buys them for $2 a share and laughs like a crack dealer at a hollywood after-party.
If you walk away from this home for any reason other than that you decided that Scottsdale is no more exciting that ALB or you simply just miss breakfast at the Frontier Restaurant and those damn sweet rolls (and the worlds best machaca breakfast burritos....), you are making a large financial mistake and walking away from your $150,000.
What is happening in D.C. will likely fix up much of the problems in the lending world, and PHX is one of the four worst markets in America since half of your neighbors were speculators anyways. You are going to have to wait a while for the foreclosures to disappear. And once those are gone, nobody in your situation is going to want to sell in the $300Ks or even the $400Ks so your neighbors are going to be holding out for better pricing just like you will be wanting to.
But if you freak out in the middle of the crisis, you are going to take it in the worst way possible. And you will have handed $150K to a bank you is now getting off the hook with the Feds. If you had the ability to hang on even a couple more months, you would be negotiating with your new lender to reduce the balance of your loan to appear to match your current market condition (which might even be LESS than your original purchase price AND your down payment).
So....unless you were really screwed and had to get out you might have missed out on a great opportunity and you also mishandled the situation as a whole.
Feel free to pass this along. I know from what I speak. I do this for a living for lots of people including people who now find themselves in this situation. You walk away only when there is no chance of future success OR you run out of money. As soon as the idiot banks move their loans over to REAL banks there will be a whole lot of negotiating going on (finally!) and people will get happy about their mortgages again.
But I do really miss breakfast at the Frontier. Good times. Good times....
So, think about this. I played by the rules
No you stupid twit. You did NOT play by the rules.
THIS is the kind of person I want to see financially crucified.
Buying a house used to be for making a home over the years.
Only Barney Frank cares. Hmmmm. Alisa doesn’t sound like a masculine name, but, hey, he/she/it is a Liberal so who knows.
Also given the quality of your writnings, the reason the “gifted school” thingee didn’t work out may have less to do with the school then it does with genetics.
Yea I’m going to get seriously chewed out for this but I FULLY understand her feeling in this and feel like doing the same.
We bought our house 4 years ago for 226K, put down 25K plus closing costs an additional 16K (yes I know the 25K didn’t go to the lender I’m not a blonde). The estimated value of it right now is less than 150k, sigh.
We’ve made each of or mortgage payments on time; always in well before the 15th which according to our mortgage is the drop-dead date, except for September of last year.
My mother-in-law took a sudden turn in health and passed away September 8, 2007. We flew to Texas on September 5, not knowing she was going to pass away, just knowing it was bad.
When all was said and done, the funeral etc. We got home on September 15th at 10:30pm. We reminded each other on the plane coming home to pay our mortgage as soon as we walked in the door. I didn’t know that payments made after 6pm were dated the next day until we looked on the 16th and say the payment posted date.
Ok, I’ll admit, it’s completely our fault for not remembering to make the payment while we were dealing with her death, but that is not an excuse. In the end, we paid late. We heard anything from our mortgage company but the following month, we sent in a late fee included with our normal payment, and continued to make our monthly payments.
Last Tuesday, a full year later, we receive a letter from our mortgage company saying they are raising our interest rate from our original 5.2% to 18.5% due to the late payment, September 2007.
They also want us to pay them $1,700 in interest and penalties for the late payment. It seems that the late fee we sent in was considered a principle payment and applied thusly. According to them, we never paid the late fee. Oh, and because of being late, we are now in “special handling” and are barred from using the internet to make payments, check loan docs or our account. Real nice.
So we get on the phone with them and are told, if we do not pay the additional charge plus the new mortgage amount, they will foreclose on us within 30 days; that is their policy of course.
As I’m sitting here typing this there is a HUGE part of me that wants to do EXACTLY what she is doing. Tell the bank to stick it and walk out.
Instead, we are heading off to see a lawyer about this to see if they can actually do what they are doing, and attempt to re-finance this thing if they can.
It seems to me many mortgage companies are trying everything possible to increase interest rates, garner fee’s etc on their good paying customers to make up for those who have defaulted.
Who knows what will happen.....I guess it doesn’t pay to be honest anymore.
Her reasoning is priceless, and is representative of the selfish rationalization of liberals that have screwed up our country:
Someone commented here last night about the fact that my downpayment went to the seller when I bought this house, and not the bank.
True.
But!
The provisions of these government bailouts of the lenders are such that the LENDER will recoup that money (and any additional money they would like to tell Paulson they lost, whether true or not), while I WILL NOT.
See?
The point is, the "free market" tanked. In a true capitalist system, the companies would be allowed to fail as a consequence of their bad decision-making (in this case, giving loans to people who did not qualify for them, then selling those loans in bundles to international investors as "sound").
Also, the offer on my house is for $405,000, not $450,000. This means it will be considered a "short sale" by my lender (even though they will not have lost a dime on this house). I will therefore have a "short sale" on my credit for years to come, meaning lenders won't want to give me money - even though I have never been late on a mortgage payment (until this month, when I voluntarily STOPPED paying).
If this all makes sense to you, I congratulate you on your vast wells of denial and your ability to creatively interpret the truth.
As for me, I'd rather put my money in savings than continue to give it to a corrupt lender who is poised to, with the help of the Bush Administration, rob the American people blind.
Well.....at least her conclusion is somewhat sound. That being live within your means. Go debt free, frugality. The rest is rationalizing, blaming everyone but Alisa for making a bad decision and Alisa not even having to carry the full brunt of that decision.