Skip to comments.
No Help in Sight, More Homeowners Walk Away
NYT ^
| 02/03/10
| DAVID STREITFELD
Posted on 02/03/2010 7:05:10 AM PST by TigerLikesRooster
click here to read article
Navigation: use the links below to view more comments.
first previous 1-20, 21-40, 41-60, 61-72 next last
To: muggs
Because he made a wise financial decision and can easily afford rent payments that are half of his former mortgage payment that he kept current.
These are unusual times and you should keep that in mind unless all your units are filled all the time.
It is also likely that he mortgage agreement is non-recourse. If so, he fulfilled his contractual agreement.
To: TChris
Be sure and explain your views to the loan officer when you apply for a loan. Let me know how that works out for you. What an idiotic reply.
42
posted on
02/03/2010 8:58:52 AM PST
by
Trailerpark Badass
(One good thing about music, when it hits you feel no pain.)
To: TChris
If you walk away from an underwater mortgage, rent for a couple of years while saving the difference, you will have 20 % down and lenders will line up to give you a loan; especially when RE prices reflect actual values.
To: AppyPappy
I don’t believe you are correct. First of all he didn’t sell it so he can’t claim the sales price as a loss since he was not part of the transaction. Second, what I’m talking about is if you owe the bank $200K and they sell the house in a short sale for $125k for example then the $75k difference can be considered income since you actually owed that money and so it is treated as ordinary income. It’s like winning a house or a car in a raffle. You have to claim the value as income.
44
posted on
02/03/2010 9:05:59 AM PST
by
marlon
To: marlon
I think Congress passed a law that mortgage deficiecies will not be counted as income.
To: SeaHawkFan
I am in an unusual situation where business is booming. New company in town hired 300 computer software writers and IT people. They plan to hire another 700.
46
posted on
02/03/2010 9:12:36 AM PST
by
muggs
(If Obama is the answer, it must have been a stupid question)
To: muggs
Bet your credit standards would be much different in your city is the economy was bad. Personally, if the only blemish on a person's credit was they walked away from an underwater mortgage, it would not stop me from renting to them.
To: TigerLikesRooster
Interesting that this article is entitled “No help in sight”. Since this is about value of property being below the loan, not necessarily the inability to pay mortgage, what help should be offered? Government propping up values or paying down the mortgage to the “value” of the property? Why is this type of help owed to anyone? Next, should we help those whose stock portfolios have dropped 20-30%, making them “whole”? It's just crazy.
I had an “underwater” mortgage for 7 years in the 80’s. Eventually it wasn't underwater. Never considered walking away (even though the interest rate was 14% - a bargain when we bought the house).
48
posted on
02/03/2010 9:20:20 AM PST
by
keepitreal
( Don't tread on me.)
To: TigerLikesRooster
As long as we (the government) allow the big guys to walk away from their debts, or worse, bail them out, more and more little guys are going to do the same. Is it immoral? Probably. Only if EVERYONE is held to the same moral standard. If not, it’s just stupid to be the only patsy.
To: SeaHawkFan
I think Congress passed a law that mortgage deficiecies will not be counted as income. Then someone should tell the IRS and the banks that are issueing 1099's for "imputed income"
50
posted on
02/03/2010 9:31:26 AM PST
by
Roccus
(ABLE DANGER?????...................What's an ABLE DANGER???)
To: GUNGAGALUNGA; Carley
>>Its in the Constitution after free health care and cheap gas. Dude...read.
Is that before or after the part where the President pays my car payment and mortgage?
51
posted on
02/03/2010 9:37:47 AM PST
by
FreedomPoster
(No Representation without Taxation!)
To: AndyJackson
[Just that after two decades of getting away with it they got really greedy. ]
Yep
And so, just like the goose that layed the golden egg...
Cash Cow, Deceased; 1 each.
52
posted on
02/03/2010 10:03:35 AM PST
by
LomanBill
(Animals! The DemocRats blew up the windmill with an Acorn!)
To: marlon
If the bank “forgives” the $75k, then it could be income. I bet the bank tries to collect it.
53
posted on
02/03/2010 10:14:28 AM PST
by
AppyPappy
(If you aren't part of the solution, there is good money to be made prolonging the problem.)
To: sickoflibs
Those offers will be for very high interest rates and low credit limit, I bet < $500.Some do, many do not. Filers are getting the same card offers that 'good credit' folks are getting including 0% card and car loans. Creditors know that they can't file again for another 7 years and change.
Bottom line. Bankruptcy does not carry the same stigma it did in the old days.
To: Republic of Texas
>>Only if EVERYONE is held to the same moral standard.
Tyranical Governance (monetary and otherwise) is empowered by individuals who fail to maintain a moral standard - against which those individuals hold themselves accountable.
Thus:
It is incumbent upon the honorable craftsman
to be aware of whether or not his services are being used
as a means to accomplish evil ends -
and to act accordingly.
55
posted on
02/03/2010 10:18:59 AM PST
by
LomanBill
(Animals! The DemocRats blew up the windmill with an Acorn!)
To: petercooper
Hey Benjamin, you are a financially illiterate moron for buying an overpriced condo at the peak of a the Housing bubble. Thats life.What are your thoughts of Morgan Stanley walking away from 5 office buildings in SF? They called it a "strategic default", and there was no outcry in the press or on FR.
The way I see it, Benjamin was just following the lead of Wall Street. I don't approve of it, but it's not my decision to make.
56
posted on
02/03/2010 10:24:23 AM PST
by
Night Hides Not
(If Dick Cheney = Darth Vader, then Joe Biden = Dark Helmet)
To: SeaHawkFan
If you walk away from an underwater mortgage, rent for a couple of years while saving the difference, you will have 20 % down and lenders will line up to give you a loan; especially when RE prices reflect actual values. Sure, and no moral character too!
(It's a bonus)
Look. "Walking away" from an agreement and promise you voluntarily entered into and signed your name to is dishonest.
I thought it was the Democrats who are the party of situational ethics!
There are no guarantees given about the future value of the home when you sign the mortgage. You know that going in. If you sign your name and make that promise, then you should do everything in your power to live up to it, at least if your word and your signature mean anything.
I don't believe in "walking away" from commitments and promises when things aren't all sunshine and rainbows any more.
Foreclosing because you just can't make the payments is a different story. Walking away because you just don't like the real estate market is wrong.
57
posted on
02/03/2010 10:30:14 AM PST
by
TChris
("Hello", the politician lied.)
To: moehoward
RE :”Bottom line. Bankruptcy does not carry the same stigma it did in the old days. “
Back in the 1970s you couldnt get regular credit cards at all without a job and a house. My Grandmother couldnt get one. And now there is little social stigma to anything bad.
But they still will have trouble getting reasonable loans or a good job.
58
posted on
02/03/2010 10:38:17 AM PST
by
sickoflibs
( "It's not the taxes, the redistribution is spending you demand stupid")
To: TChris
See post #37. If you can’t understand that then you are hopelessly ignorant.
To: sickoflibs
"Back in the 1970s you couldnt get regular credit cards at all without a job and a house. My Grandmother couldnt get one. And now there is little social stigma to anything bad. But they still will have trouble getting reasonable loans or a good job."I'm sorry.
Navigation: use the links below to view more comments.
first previous 1-20, 21-40, 41-60, 61-72 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson