Posted on 06/09/2011 11:10:52 AM PDT by Scythian
MODERATOR, I OPENED THIS UNDER CHIT CHAT AND WANT MY TITLE, THIS IS NOT A NEWS STORY POSTING
Charles and Jill Segal have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home.
Lynn, from St. Petersburg, Fla., has been living without paying for three years.
In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home.
They're not alone.
Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years.
http://finance.yahoo.com/news/Foreclosure-limbo-Staying-cnnm-989137852.html?x=0
I FEEL LIKE A COMPLETE IDIOT, I ALWAYS PAY MY MORTGAGE ONTIME AND HAVE EXCELLENT CREDIT. HOWEVER, THE ECONOMY IS GOING TO EVENTUALLY CRASH AND WE'LL ALL LOSE OUR HOMES, SO I CANNOT FIGURE OUT WHY I AM PAYING RATHER THAN JUST STOP PAYING AND SAVING THE MONEY?
I GUESS BECAUSE MORALLY I COULDN'T DO THAT, AND I MADE SURE I COULD AFFORD MY HOUSE, AND I GOT A FIXED RATE MORTGAGE RATHER THAN GAMBLE THAT I WOULD EVENTUALLY BE ABLE TO AFFORD IT LIKE THE REST OF THESE LOSERS. I'M PISSED.
(Excerpt) Read more at finance.yahoo.com ...
Just think what this does to the people who really need help (and there are many). Those kind of scenarios are what makes it so difficult for those truly in need to get help.
She bought the house at $135,000. No banker made her take temporary equity out of the house in the form of a loan which she spent on something else.
You could make a better argument from today's perspective that she borrowed money with no real equity. She still owes the money but that banks will have nothing to claim if she defaults.
She used a real estate bubble as a source of cash. Perfectly legal, but she still owes the money, even she through it all away.
It’s called integrity. Some have it, some don’t have it and make excuses. (the bank made me do it, etc..).
SO I CANNOT FIGURE OUT WHY I AM PAYING RATHER THAN JUST STOP PAYING AND SAVING THE MONEY?
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SO THAT SOME DAY YOU WILL OWN YOUR HOME AND WILL NOT BE A LOSER
ROFLOL.
I personally know several people who have walked away from houses when they were having no trouble making the payments. In most of the cases the value on their home dropped to less than what they still owed and they made the decision to do a “short sale”. There are many Realtors who specialize in short sales. The Realtor arranges a sale for less than what is owed to the bank, and coerce the banks to accept less money than what they are owed.
One of my “friends” found a younger girl friend and divorced his wife of twenty seven years. To pay off his ex-wife he refinanced the house with a local credit union. A couple years later he decided that the house wasn't worth as much as he owed and had a short sale arraigned. He makes around $130,000 a year and his new wife makes around $100,000. Their payments were around $2000 a month on the house. They could have rented the place for $1500 a month, but they were told that the short sale wouldn't mess up his credit for more than a couple of years. The Credit Union took it in the shorts and my “friend” walked away with his ex-wife paid off and no payment on the debt.
Why the banks agree to arrangements like this from people who can obviously afford the payments I don't know. It is not right and it is hurting the rest of us.
My brother-in-law got reassigned to a different military base after he got back from Iraq. Unfortunately, they bought near the peak of the market so they couldn't sell their house because it is now worth half what they paid. They are living hundreds of miles away renting their house to a series of dead beats who have messed the house up. They are renting a crappier place where they now live because they can't buy another place because they owe so much on the place that was close to where he used to be assigned.
My brother and sister-in-law make a heck of a lot less than my "friend" and his new wife but they are determined to stick it out because they believe in keeping their word. They say the mess they are in is their own fault for not renting to begin with, but I remember how excited they were to buy their first house. There is a big difference in the way people look at this type of situation.
What if the Deal was fraud? Would you still pay?
What if they lied on the Title and you wouldn’t own it at the end? Would you still pay?
What if the bank did shady dealings and stole your property even if you did pay?
http://www.zerohedge.com/article/guest-post-ethics-mortgage-loan-default
The deal was broken, the market NOW is not like our parent’s market. The game is on.
You’re part of the problem ,, you rolled over for the banks and gave them a home that they had no legal claim on ... Why aren’t you fighting to get it back?
Do whatever is legal and best for you. Nearly half of American is refusing to make unnecessary personal purchases—some to reduce revenues to government and others terrified that they won’t have incomes tomorrow.
Corporate-government interests engaged in regulating in locales against new businesses for decades. A large proportion of the country’s men were put out of adequate work over three decades of moving manufacturing to slave nations. Due to that, there are not enough sustainable revenues for contemporary fat government at all levels.
Prepare for the “austerity” programs ahead (hysterical tax hikes without expected yields, unprecedented cuts in employment, big cuts against Social Security, Medicare,...). Atlas is not shrugging. The real Joe the Plumber is, and so are his wife and kids. ...and neighbors. Currency wars, trade wars, and probably, real wars will commence.
Read my post. I was giving the options for spin.
Keeping somebody living on the property,keeps it maintained and looked after.
When property values rise they will be evicted immediately..
We just bought a foreclosure the owner moved out, within 2 weeks,faucets,hot water heater,undersink disposer ,light fixtures,garage opener and any copper wire or copper pipe visible in the garage had been removed..
They broke a water pipe in an upstairs bathroom destroying the ceiling and warping approx 300 sq ft of oak flooring..
We got it for a steal approx $100,000 below normal price..
Why the banks agree to arrangements like this from people who can obviously afford the payments I don’t know. It is not right and it is hurting the rest of us.
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Since this was with a credit union it is likely that it was a legit loan .. however in 96% of the cases the banks did not lend their own money and the actual “table funder” (the REAL lender) is not listed ANYWHERE on your documents invalidating the loan AT INCEPTION. The “loans” were sold BEFORE the closings and converted to securities where the income stream was divided off ,, seperating the note from the obligation/security instrument (mortgage) .. this invalidated the “mortgage” in a second way. This isn’t 1985 and this isn’t your fathers mortgage market.. The banks played dirty and took a gamble ,, that gamble sank the economy but I can’t think of any reason to continue to believe their lies.. We can’t recover as a nation until the truth is acted upon in this arena.
I'm going to admit I bought my house this Feb. foremost as a place to live, not as an 'investment'. In 5 years I should be about 2.5 years short of paying it off. Then I'll have a place to live with ~$200 of property taxes owed monthly. What will the deadbeats have in 7 years except the foreclosure finally wiped off their credit report?
Prices can and will fall, but they can't fall below zero. My house was built in 2000 and I expect it will still be around in 2020 to keep my family warm and dry. Someone else will buy it for that purpose if I want to sell then.
I hope that is sarcasm. If it is not you are saying if you and I have some kind of business arrangement where you agree to pay me an amount of money in exchange for a good or service once you obtain that good or service from me you would not pay me any balance you owe me?
If you agree to pay for something and you do not pay for it and you keep the item you are a thief.
Why the banks agree to arrangements...
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In most cases the banks have $00.00 in the loan ,, the actual true lender is remote and the bank’s fastest path to cash is to take the security (house) and sell it , they don’t like doing a short sale as it keeps them involved ,, the real lender gets NOTHING... they are cashing in by suing the securitizers but they want to stay uninvolved with the FRAUD the banks are commiting in order to foreclose..
Well, I fell behind due to divorce/income loss + alimony. The bank refused to work with me trying to catch up & sent someone to drill my lock and enter the house. On the advice of my Attorney, I am not even trying to make a payment. My house has been on the market since August.
We didn’t lose the house. Thankfully family members helped my wife and me with the past due amount and the foreclosure was reversed. We are still living in it.
Who’s going to pay for the mess when the real lend comes forward in 25 years and wants to foreclose because the servicer didn’t pay him? And you don’t have a leg to stand on because you made all your payments to the servicer and not to the lender?
So folks such as yourself got the same break as everybody else.
Having said that, contrary to what some here say, the bank loaned you money, but not on your word, they loaned you money on their opinion of the value of the collateral (the house) and your income and payment history.
Let's say there is a nice house in your area available for $250,000...call your bank and ask them if they will loan you the $250,000, just on you good name and word, without having a lein on the house and see what they say.
contrary to what some here say, the bank loaned you money
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but not their money ,, they are in no position to foreclose
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