Posted on 05/10/2010 6:26:23 AM PDT by blam
60 Minutes Runs Feature On Walking Away From Your Mortgage, And Now EVERYONE Wants To Know How They Can Do It
Joe Weisenthal
May. 10, 2010, 9:09 AM
Did 60 Minutes prompt a big cultural and economic moment last night?
The weekly TV news show ran a big feature on strategic defaults, and from what we gather it made strategic defaults look pretty sympathetic.
It also acknowledged that it could undermine the recovery.
Either way, we know LOTS of folks decided they want in on the action. How do we know?
Because all of the sudden we got flooded with search hits from people searching for information on how to walk away from your mortgage.
They were all landing on this handy how-to guide we drew up in January.
Do you want to get in on it? Click here to find out how.
[snip]
(Excerpt) Read more at businessinsider.com ...
Exercising the terms of a contract is not a crime (at least at this point in the Obama administration).
Corporations have many times chosen to default on agreements as a carefully considered decision. No one but the leftist press has ever termed those actions "immoral" as far as I know.
Bingo!
I'm aghast that any so-called conservative would ever condone someone making such short-sighted, foolish decisions, then passing the burden of responsibility on to others.
I dont get this whole “Walking away” craze.
I know people who have a nice low mortgage payment, house is worth a little less than they paid, yet they are just DYING to walk away. Why? So they can pay rent to a landlord? It will destroy their credit, and take away the freedom they have of owning their own home.. so It makes no sense to me.
Its one thing if you are unable to pay your mortgage, but to walk away from a home you live in if you can still afford to pay seems almost silly to me.
Its not like the home is going to magically become worthless overnight.
My house is worth about 10 grand less than I paid, I dont plan on EVER walking away from it.. I hated having a landlord and renting in general. To me, owning my home is freedom.
Dave is the man :) Debt-free except for our house here.
Show me a mortgage contract that allows the borrower to deny the debt and abandon the collateral to the lender without consequence.
“My real estate agent (and they ARE a part of the problem) made some comment like, “I was talking to so and so at the bank, and he mentioned that you guys could easily qualify for a more expensive house.” Now a couple of thoughts came to mind: 1. The bank is not supposed to be discussing my finances with anybo”
My immediate comment back when ours did that was, “You’re fired. Reason, violation of privacy restrictions and federal and state banking and real estate laws.” I was pissed. We will buy this year perhaps but I will not use any banker even remotely connected to our agent even if we use an agent. I am not so sure they are a necessity.
I’m not begrudging those who’ve lost their jobs, but I also know several people who prepared for the flood, if you will, and have adequate savings to stay in their homes! I’ve done everything I can to ensure the same in the event I lose my home.
The purchase of a home is a responsibility. Many people thought that just because they could get a loan, they deserved a home. That’s simply not the case. Despite having great jobs since graduating college, I waited almost 10 years before I finally bought, because I wanted to 1) be out of debt and 2) ensure that I had a stable income and plenty of savings. I was responsible, accounting for all possible contingencies, INCLUDING JOB LOSS!
Agreed. for $10k I wouldn’t walk away or advise anyone else to. But for $100k? or more? Hell yes.
no they don’t face a tax liability through 2012.
If they do a bankruptcy they face zero liability.
If they do a ch 13 the second mortgage can be stripped off.
REMEMBER FOLKS this is a contract for purchase with the house as collateral. You pay you keep. No pay, bank takes.
People are just making the banks live up to their end of the contract.
So? That's a moral issue.
A brief stint in jail, and the payoff may still be worth it.
Just run the numbers.
(P.S. An action being legal does not make it moral.)
A person would have to be nuts to own rental property in this legal climate. Discrimination charges, liability exposure, taxes, fees, maintenance and upkeep (remember, the renters don’t care if the place is trashed; they’re just passing thru), code compliance, people running meth labs in their apartments, gangs, hookers, cops that have to be paid off, Section 8 low-lifes... no thanks.
I suppose you could rent only to people you know personally... but the exposure will still be there.
The consequence is they have to give the house back, they may be liable for overages and in some states they can be sued. they may be liable for taxes on the forgiveness and their credit will be impaired.
No one here is arguing “no consequence”. We are just weighing consequences.
You’re right...debit card change all that. As a banker of 40 years’ experience, though, I don’t have a debit card and NEVER advise my clients to have one.
Don’t get me wrong, neither do I. I am debt-free and have sufficient savings to pay my mortgage for 6 months in the event of job loss or catastrophe. These folks who are defaulting and walking away will NEVER be able to 1) pay off their defaulted mortgage or 2) borrow money for ANYTHING.
In 10 - 15 years, we’re going to hear stories about folks who failed to hold up to their contracts (mortgages) and now they can’t get cars or even student loans because of their lack of judgment.
nonsense, they have no liablity for that under law good throught 2012. If they had a bankruptcy it is gone.
all on irs.gov
Most who advocate this action do so from the perspective that there is no down side to the borrower.
It’s working for us. We’ve been in debt, and don’t ever want to be there again. I grew up, got smart, and don’t have a single credit card, and only have two loans to my name. My wife’s car, and our house.
“Yep, so is getting a 1099, so no one is out anything. Everything is according to the contract.”
yep, and even the 1099 is negotiable. Banks hate it when they have to accept the risk of doing business. They just want the profit side.
you also have banks that were flipping the mortgage notes. You USED to not be able to sell for 5 years because the note had to be aged. Then the years became a year then months then immediate.
The banks inflated the house prices using their mandatory appraisers in order to ensure their future gains immediatly.
The note was the prize not the house.
REMEMBER THE BANKS HAVE BEEN PAID FOR ALL THESE MORTGAGES. The only issue is when does the government become the only lender. (only loyal party people get the notes)
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