- Shoplifting
- Robbing a gas station
Ratigan was pushing this disgusting idea a couple of months ago.
Nothing like a little class envy to push a liberal agenda... Wealthier Americans aren't going to 'mail back the keys' and lose their good credit rating.
The left hates the middle class - the only reason to try to pit them against those in the upper classes is to undermine the banking system and throw the whole country into chaos. And we all know how Obama would use that disaster...
While the area boomed, people bought or rented houses or rooms, paying whatever the "going rate" was for housing, food, hardware, etc., usually much higher than the "going rate" for the same in less booming areas.
Eventually, the economic viability of the area declined, driving down the "going rate" for everything, and driving out the people who had come there for jobs. Without the jobs, the homes were worthless. No one else came in to buy them at any price. People left town without paying the hotel, the hardware store, the blacksmith, etc., unless they had paid up front.
The government didn't step in to reimburse anyone for their losses. Some people made much money; others made little or none. Then the town went bust. People just left.
Whoever gets the blame for this modern-day, nationwide bust, the results will be the same. People will leave where they can't survive, and go where they might have a better chance. And no amount of additional government interference will squeeze more blood out of a turnip.
If you lose your job, and can't make the payments, that's different. You are not walking away, the bank is taking it back.
Oh wait, it's OK to re-neg on private contracts, as long as we don't give the government THEIR portion of our hard-earned money.
One of the things to do BEFORE making the purchase, not AFTER!!!
And before anyone cries to much for those poor banks, most have received their money back as these homeowners have paid them years of principal payments at interest while the banks have received that money virtually free from the fed.
Typical scenarios like someone let's say that bought a house in 2005 for $250,000 and being the good conservative, put $50,000 down and financed $200,000 for 30 yrs at 5.75%.
Now after paying for 5 years, the bank has received $70,000 of which $55,000 is profit to them. Now with the value dropping to $150,000, the homeowner is underwater by $35,000 and decide to walk to take a better job elsewhere. Their credit is ruined and they'll be renting for years to come, but the bank sells the house for $150,000 and they still have received $20,000 more than they have in it when all is said and done. Meanwhile the homeowner has lost the original $50,000 and the $70,000 in payments for something that could have rented for five years at a cost of $55,000.
So when all is done the bank is up $20,000 and they lost $65,000 with bad credit for years to come.
There is No Free Lunch in this life!
The down side to the Stratigic Default incudes:
Never being hired by a bank (or insurance company). Not even for a non banking job like IT support or Marketing.
Know your state laws! In Delaware, the lender can seek a default judgement for the unpaid balance which will acrue interest at the statutory rate (double digit) So if you are semi young with a higher than average earning potential, the obligation will follow you.
I really want to know why baseless idiotic statements like that, rife with stereotypes are any different than racial or gender stereotypes that enlightened society so abhors.
This author belongs in congress.
As a democrat.
Dear Lindsey Owens,
It is a legal obligation.
I know I would never open any type of charge account for someone or make a loan to someone who walked away from their mortgage nor would I rent to them.