“He’s a nutcase.”
I second your assessment.
He rants with no logic or facts to back him up and gives people very bad advice.
People who stop paying mortgages or loans will have their credit totally destroyed, which not only impacts their ability to get credit later, but it hurts their ability to get jobs — in many jobs they do a credit check routinely before hiring someone. A bad credti check can make people unemployable for responsible jobs. Not a good thing in a recession, when there is serious competition for the few jobs available.
Exactly, most companies do credit and background checks before hiring. They do credit checks when you rent an apartment, too. I guess his plan is ok if you plan on living homeless and jobless for the next 7 years. And they idea that you’ll be able to buy another house in a couple of years with crappy credit is ludicrous.
The writer also neglects the fact that a bad credit rating can preclude RENTING property, as well. Most property managers will not even consider a rental contract if you have a poor credit rating.
***“He’s a nutcase.”
I second your assessment.***
I haven’t read the entire thread yet....but I agree and therefore..
...I third your assessment.
This is absolutely true. There are several rather accomplished and competent middle-aged men working at low-paying jobs at our office because they have very bad credit (one due to a catastrophic illness, another due to a divorce and crippling alimony payments). They can't get better jobs.
He's talking to people already facing foreclosure. That's not many people right now. He's not telling people in good shape to stop paying their mtgs.
We talk a lot about personal responsibility on FR in re loans/credit. But a lender is a professional just like a nurse or a teacher. They have fiduciary and ethical obligations just like a borrower has the responsibility of meeting his own contract. If a lender does not believe a borrower is creditworthy, and still makes the loan...where's his "personal responsibility?" He knows more than the borrower. I don't feel much for these lenders except anger at watching them get bailed out.