Posted on 09/29/2010 2:00:33 PM PDT by Neidermeyer
You already know this, but your BIL made one of the better decisions for the predicament he was/is in. I strongly believe that when it comes to finances people NEED/HAVE to approach it from a totally non-emotional perspective. Just a couple of days ago I saw a thread on FR where some FReepers (that I personally respect) were saying how those who strategically default (it was a thread on how the wealthy strategically default, and how the less wealthy tend to hang onto their mortgages) were 'immoral' and all sorts of words and phrases. I could have said something, but then again that thread had become quite emotional, and there was no way I would have made anything approaching a cogent statement without it unraveling into something closely resembling a flame war (which 6-7 years ago I had no problem wading into, but nowadays tend to avoid since it is largely a waste of time).
Anyways, when it comes to finances (and investment), you need to be unemotional. A mean-lean-logic-machine. Anything else (e.g. that is 'wrong') is your behind. I know of a case where someone even refused to take a super job because he felt 'bad' for his employer, not knowing that the employer would not feel bad for a moment if the loci were reversed (I even know of a couple of pals who were fired via voice mail). My investment record (when I was a fund manager - now I work at a certain organization handling private equity, which is similar but different) was really good ...simply because I could just switch off parts of me and approach the situation with a cold logic. Got me good returns when others were running negatives.
You see people who are so FAR below water (the value of the house is less than half the value of the loan), were not planning to stay in that house (i.e. it was a speculative investment ....it would be alright if you were going to be in the house for years), and have already started cannibalizing some sort of savings account they had (e.g. they are paying all their bills, including mortgage, from a US$ 5,000 account they have ....and that account will be finished in 5 months or less, and they will STILL be in the same position ...and STILL lose their house). Would it not make more sense to have a serious look at their finances, and if there is no way they can get out, take a decision to get a nice rental (while their credit is still good), and move there (and in the process keep the US$5K)?
To some that is wrong and immoral, and maybe it is, but there is a reason those with money take such decisions, and others keep leaching their savings account until it is empty,and they still find themselves foreclosed on, and with bad credit, etc etc etc.
Anyways, just my (immoral) views.
Prior to, and during the American Revolution estimates by historians suggest that supporters of the rebellion numbered at about 45 percent while the “Loyalists” or “Tories” represented about 20 percent.
That left about 35 percent who remained neutral. It’s interesting trying to look for parallels in modern day America.
Unless the last 3 mortgages were all though a local credit union the chances are that the true lender is not who you think it is. The servicer remaining constant is not a reliable indicator of anything.
Lets add BAC to the list ,, fraudulent filings ,, they’ve just pushed the “stop” button.
BAC is trying the same tactic as GMAC ,, stopping ONLY in judicial states... and continuing to file bogus documents in the rest... CRIMINAL BEHAVIOUR.
It is. I do this for a living, we make all of our mortgages in our name.
Most are sold to Fannie or Freddie at some point after closing and we service them.
But if we screw up on something, we would have to keep the loan on our books.
You'll be under a microscope soon.
US Rep. Giffords seeks 90-day foreclosure moratorium in Arizona
Fortunately we didn't do some of the riskier loans that other lenders did; that has been a huge benefit.
Of course we were criticized at the time for not doing enough, and being “too conservative”
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