And in the end you were a loser.
The 11% mortgage is probably accurate if she took out an ARM on the cash out refinance based on 100% of the appraised value. This is especially true if she had a low credit score to begin with. The article is short on relevant information however... to the point that there is no way to make a meaningful judgement on her situation. To me it sounds exactly like a typical situation that ultimately caused this crisis... mortgage brokers making loans to people who had very little chance of ever paying the money back. Multiply her situation by about a million other persons and you can see why will all be paying for this mess for decades to come.
“It’s called — get this — You Walk Away. I am single and dating again....”
:o)
Further proof that today most people’s word is worth s—t.
http://www.calculatedriskblog.com/2010/01/is-this-really-walking-away.html
“First, “walking away” usually means the homeowner can afford to pay their mortgage, but are choosing to strategically default (or in the language of servicers “ruthlessly default”) simply because they owe more than their home is worth.
This homeowner lost her job and has other financial issues. Yes, she owes more than her house is worth, but this sounds like a normal foreclosure caused by financial distress.
Second, why is her mortgage payment $1,450 per month on a $154,000 mortgage? Is that a 10%+ interest rate? Is this PITI? Is there a 2nd with Tony Soprano? Perhaps the reporter could have explained this a little better.
Third, if she stopped paying her mortgage in September 2008, what has the bank been doing? “
That’s legal.
Just immoral.
This is semi-vanity. Note in the “planted” article she had help. The company that “helps” charges $1,000 for advice and uses these planted articles to get clients. I’m a mortgage broker with a site devoted to trying to provide information free to people genuinely in trouble with their mortgages. If the moderator permits, http://www.foreclosurebooklet.com
She originally bought at 100K, then did a cash out refi for 154K, over 50% increase!!! (at 11% interest, apparently). In all of these sob stories, I have never, NEVER read a story that didn’t involve a cash out refi. If she would have kept the 100K loan, she would have equity, since her home is now worth 120K, and probably a much cheaper note. (even if the interest were the same, 11%, 100K for 30 years is 952, vs the 1450 she is paying now).
Not only is this woman a common deadbeat, she can’t do simple arithmetic.
Too bad that she and her family trashed the house wile they were there. It sounds like they didn’t do even the most basic maintenance and she is a textbook example of someone who should never have been in that house in the first place.
I’ll bet the neighbors will throw the new owners a BBQ...either that or they will burn the place to the ground as soon as they leave...
This house is worth $20,000 more than when she bought it.
If she wouldn’t have been stupid and refinanced and sucked $54,000 out of it she would still be ahead .
Some people are just to stupid to own a house.
She has a permanent renters mentality thinking that you never have to repair anything also (complains that the toilet is not working - How hard is it to go to Home Depot and buy a kit to repair for under $20 or a whole new toilet and a wax ring for under $200 ?)
Some people are just to stupid to own a house.
I can’t believe she got away with living their for 18 months without paying anything.
I guess I can figure out how she votes.
1) She bought the house at $100,000
2) It went up to $154,000 and she refinanced it at $154,000 which means SHE TOOK OUT $54,000 in cash.
3) Its now down to $120,000 and she cant afford mortgage so she is walking away.
This house originally cost $100,000. In 2005, as the housing market heated up and I needed cash, I refinanced it. An appraiser said it was worth $154,000 -- which I thought was too high but nonetheless accepted. I cashed out the house at that value.
I used the money I accumulated from not paying the mortgage to pay off all my credit-card debt
I feel no shame. I am not suicidal. When I think of what really counts, I do not think of money(unless you count the credit cards that she ran up); I think about the health of my children. Besides I am not the only one.
I am single and dating again.
Here’s what I would like an answer to. Why WON’T banks work with people in these situations? It’s like they are forcing people into foreclosures when there simply has to be a better solution. Most creditors would rather get 50% of a debt, for example, than 0%, but that seems to be what the mortgage companies are willing to take.
btt
At the same time, the cracks of the corrupt government foundation spread.
Always go with your gut.
???
I can’t make sense of this - - did this irresponsible scumbag buy the house for a place to live or as an investment to flip for a quick profit?
She says she can't support her family, but she doesn't say where the father (or fathers) of the three children in all this is.
How is this any different than theft? You borrowed money, you signed a contract to pay it back. If you don’t that is, at best, breach of contract, at worst it is outright theft.