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More California homeowners walk out on mortgages
Fresno Bee ^
| 27 May 2010
| Tim Sheehan
Posted on 05/31/2010 12:22:29 PM PDT by Lorianne
In areas hardest hit by plunging real-estate values - including the San Joaquin Valley - some people who can afford their mortgage are opting to walk away from their loan and let their bank repossess the house.
"It's very stressful to get to that point," said James Graham, a 48-year-old power-plant worker who walked away from his home in Bakersfield last fall. "You're raised up to do the right thing and pay your mortgage, pay your bills."
"But when you get to that point where it's time to walk, it's time."
It's called "strategic default," and experts say it stems from frustration with home values that have plummeted since buyers bought or refinanced at the peak of the real-estate boom, and banks dragging their heels on loan-modification requests.
(Excerpt) Read more at fresnobee.com ...
TOPICS: Business/Economy; Government; US: California
KEYWORDS: banks; debt; defaults; foreclosure; foreclosures; government; hamp; housing; mortgages; realestate; strategicdefault; walkaway
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1
posted on
05/31/2010 12:22:29 PM PDT
by
Lorianne
To: Lorianne
There really ought to be a permanent “no credit for you EVER” list for people like this.
2
posted on
05/31/2010 12:23:35 PM PDT
by
pnh102
(Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
To: pnh102
Banks, too. Banks should be required to close if they make such ridiculous loans on these properties.
3
posted on
05/31/2010 12:25:26 PM PDT
by
CodeToad
To: CodeToad
how dare anyone blame these people or banks for not being responsible.
4
posted on
05/31/2010 12:26:51 PM PDT
by
dalebert
To: CodeToad
exactly. and unbder no circumstances should taxpayers have to bail out a bank that made these ridiculous loans (but we will of course).
5
posted on
05/31/2010 12:27:26 PM PDT
by
RC one
(WHAT!!!!)
To: Lorianne
No one was ever guaranteed that their home would always be worth what they bought it for. People need to go back to looking at a home as a shelter, a safe place to raise children rather than just an investment.
People that can afford their mortgage and just walk away from it ought to be jailed.
6
posted on
05/31/2010 12:28:17 PM PDT
by
Grunthor
(Faster than the speed of smell.)
To: pnh102
There really ought to be a permanent no credit for you EVER list for people like this. We have people on this forum who will disagree with you. (I'm not one of them).
7
posted on
05/31/2010 12:29:12 PM PDT
by
Graybeard58
(No Romney,No Mark Kirk (Illinois), not now, not ever!)
To: pnh102
Exactly. Hubby and I worked hard to save 20% for a downpayment and to pay off our house.
NO MORE CREDIT EVER for people like these.
8
posted on
05/31/2010 12:30:59 PM PDT
by
GOP_Lady
To: Graybeard58
Who care who disagrees with me. ;-)
9
posted on
05/31/2010 12:31:24 PM PDT
by
GOP_Lady
To: Lorianne
They're not doing anything wrong. Walking away in a "non-recourse" state like CA is one of the contingencies all parties were aware of when the arm's-length loan agreement was signed. These people are simply acting within their rights. There's nothing at all unethical or immoral about standing on one's rights.
To: Lorianne
In many cases, lenders encouraged people to behave irresponsibly. These customers are worthy of censure, but the lenders often aren't purely innocent victims.
11
posted on
05/31/2010 12:32:29 PM PDT
by
Clintonfatigued
(Obama's more worried about Israelis building houses than he is about Islamists building atomic bombs)
To: CodeToad
Exactly. Hubby and I went through a very reputable S&L.
That S&L doesn’t give loans to just anyone.
That S&L is still strong.
12
posted on
05/31/2010 12:33:05 PM PDT
by
GOP_Lady
To: Erskine Childers
They signed papers that they would make payments and repay the loan in full.
13
posted on
05/31/2010 12:33:33 PM PDT
by
GOP_Lady
To: Grunthor
14
posted on
05/31/2010 12:34:37 PM PDT
by
GOP_Lady
To: Lorianne
Was at a True Value store a couple of days ago. The guy behind the counter got a call from his wife after their bankruptcy meeting with a judge. Bank of America could not show that they held the mortgage and they didn’t show up at the hearing. The judge gave them the house. Just have to make sure they pay the taxes.
15
posted on
05/31/2010 12:35:00 PM PDT
by
raybbr
(Someone who invades another country is NOT an immigrant - illegal or otherwise.)
To: Lorianne
Using this kind of logic, every new car purchaser could "walk" on his loan the day after buying th ecar. Not all assets appreciate in value; the fact that this one has not for some people does not justify their actions in disregarding their contracts.
That being said, I do blame the lenders for much of this mess and, were it not for the insane bailouts, would have loved to see the worst offenders go down the drain.
16
posted on
05/31/2010 12:36:00 PM PDT
by
PackerBoy
(Just my opinion ....)
To: Graybeard58
Many people are walking away from homes and SUV’s all over the country because they just can’t make it.Between the banks and the government people are feeling enslaved and have no other choice.Blame gas prices,food prices and high taxes and an over all bad economy.You can’t bleed blood from a stone.
17
posted on
05/31/2010 12:36:14 PM PDT
by
taxtruth
(Something really stinks In The Federal Government/Mafia and I think it's BO!)
To: pnh102
Let the market decide about the credit, and about the terms.
18
posted on
05/31/2010 12:36:31 PM PDT
by
dadgum
(Overjoyed to be a Pariah)
To: CodeToad
"Banks, too. Banks should be required to close if they make such ridiculous loans on these properties." If banks down loan enough subprime loans (ie social justice crap), then they get a low CRA rating (community reinvestment act). With a low CRA rating the bank is then pretty much labeled as a racist bank and expansion across interstate is thwarted via the US Congress.
19
posted on
05/31/2010 12:37:38 PM PDT
by
avacado
To: Lorianne
My suggestion would be to rent out the current home and buy a cheaper unit
while saving up the extra cash. Eventually the value will return.
20
posted on
05/31/2010 12:38:06 PM PDT
by
MaxMax
(Conservatism isn't a party)
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