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Thread: Anybody else walk away from their mortgage?

  1. #41
    Something Cool uOpt's Avatar
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    Default Re: Anybody else walk away from their mortgage?

    I'd still like to see numbers, in particular the new and the old interest rate that 80's_Metal's bank wants.

    I understand the concept of a variable interest loan, but for my judgement of this situation (that was asked for) it plays an important role whether the bank tries a ripoff here. Why would you try to defend the bank if they suddenly change to an unreasonable interest rate? Oh that's right, they probably do the maximum raise allowed by local law.

  2. #42
    Toneologist JollyRoger523's Avatar
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    80's ... Good luck bro. If you do move make sure the new pad had a garage to rock out in.

  3. #43
    Toneologist chcjunior's Avatar
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    Default Re: Anybody else walk away from their mortgage?

    Business is business.....walk away if it makes sense for your family. One thing to consider is what will it cost to rent a place? My girlfriend bought a place recently at a GREAT price since the market has tanked. I bought my townhouse 5 years ago and would lose $35-40K if I sold it......so I opted to rent it out. I'm easily covering the mortgage (which I refinanced at a great rate) and HOA fees as rent is getting so high in my area.
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  4. #44
    Underglazed Hair Metalologist 80's_Metal's Avatar
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    Default Re: Anybody else walk away from their mortgage?

    Some good discusison. Truth is I never understand most of the laws involving bank payoffs and all the govt red tape and bailouts and stuff.. I never turn the TV on because its always bad and sad news on it. I only watch hunting shows, MMA fighting, hockey, and the walking dead.

    We bought the house 7 yrs ago as a starter home, looking to sell it in 2-3 yrs and move on into something we really want...
    well 3 years into it the market tanked bigtime... we should have sold then but were hoping for better times... and kids were still small enough it didn't matter a whole lot yet.

    Well kids are big now.... they need a bigger home, and a yard to play in.
    Our mortgage is (after 7 years) still up about where we bought it.. and its only worth (my new estimation 45k)
    There is a house down the street that is newer than ours, bought for $378k and just auctioned for $45k.... I mean really bad.
    So from a financial point, we can't stand to pay for the next 23 years on something thats going to be worthless when we are done.

    It is killing us morally... killing us. we've never renegged on anything ever before...
    in our small town we know lots of people who have walked away from their homes... lots. my best friend just walked out of his, bought a home twice the size for half the money. He's as happy as can be, but thats him...

    After talking with a realtor friend or two... As I understand it, the bank gets paid off by the fed govt and then just sells off the home for cheap, so they make money out of the deal... Chase bought it from our previous company and I know they paid way less than whats owed... then they immediately began calling us to renegotiate the terms.... which as I understand it is against the law... It pissed my wife off and she bagan looking for a rental.

    We found a very nice rental in town, TONS of acreage, bigger than what we have, and the rent is the same as what are paying now.
    I know our situation is different than everyone elses, but it is what it is.
    I am dreading talking with the bank again, I get very easily depressed when people get ugly or confrontational.

    I think it is the best thing I can do for our family, better home, better place, no drug dealers on the same street, just better all around.

    Your prayers are helping us through the moral issues and hard feelings we are dealing with... thanks for that guys, it really means a lot to us.

    I don't have any trouble dealing with sticking it to the banks that are the reason for the heartaches of so many people in this fine country, but I do feel bad about backing out on a signature.... financially its the right decision, but again morally it is hard for us.

    I started packing the house up today. We move this weekend.

    Shoot if anyone wants a home in Arizona with a nice sunset view every night drop me a line and pay off my house.... its yours.

  5. #45
    Ultimate Tone Slacker
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    Default Re: Anybody else walk away from their mortgage?

    Quote Originally Posted by 80's_Metal View Post
    Your prayers are helping us through the moral issues and hard feelings we are dealing with... thanks for that guys, it really means a lot to us.

    I don't have any trouble dealing with sticking it to the banks that are the reason for the heartaches of so many people in this fine country, but I do feel bad about backing out on a signature.... financially its the right decision, but again morally it is hard for us.
    If it helps, keep in mind that there are lot of people (myself included) out there who believe that you're making the morally right decision. The situation that arose that caused your property values to swing that much was caused by the people who were on the other end of the signature and they did not hold up what you assumed to be their part of the deal. Not only that, but you raising the quality of living for you and your family for the right reasons has much more positive impact on society than the minor negative impact that might have been caused by you walking away. Not everyone who walked away did it for any reason but pure greed but that's not what I'd consider making a better life for your family and kids to be. I'll take a better world over a fraction of a cent any day.

  6. #46
    Ultimate Tone Member iismet's Avatar
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    Default Re: Anybody else walk away from their mortgage?

    “A systematic plan to create the illusion of stability and provide no-risk profits to the mega-Wall Street banks was implemented in early 2009 and continues today. The plan was developed by Ben Bernanke, Hank Paulson, Tim Geithner and the CEOs of the criminal Wall Street banking syndicate. The plan has been enabled by the FASB, SEC, IRS, FDIC and corrupt politicians in Washington D.C. This master plan has funneled hundreds of billions from taxpayers to the banks that created the greatest financial collapse in world history.

    Part two of the master cover-up plan has been the extending of commercial real estate loans and pretending that they will eventually be repaid. In late 2009 it was clear to the Federal Reserve and the Treasury that the $1.2 trillion in commercial loans maturing between 2010 and 2013 would cause thousands of bank failures if the existing regulations were enforced. The Treasury stepped to the plate first. New rules at the IRS weren’t directly related to banking, but allowed commercial loans that were part of investment pools known as Real Estate Mortgage Investment Conduits, or REMICs, to be refinanced without triggering tax penalties for investors.

    The Federal Reserve, which is tasked with making sure banks loans are properly valued, instructed banks throughout the country to “extend and pretend” or “amend and pretend,” in which the bank gives a borrower more time to repay a loan. Banks were “encouraged” to modify loans to help cash strapped borrowers. The hope was that by amending the terms to enable the borrower to avoid a refinancing that would have been impossible, the lender would ultimately be able to collect the balance due on the loan. Ben and his boys also pushed banks to do “troubled debt restructurings.” Such restructurings involved modifying an existing loan by changing the terms or breaking the loan into pieces. Bank, thrift and credit-union regulators very quietly gave lenders flexibility in how they classified distressed commercial mortgages. Banks were able to slice distressed loans into performing and non-performing loans, and institutions were able to magically reduce the total reserves set aside for non-performing loans.

    If a mall developer has 40% of their mall vacant and the cash flow from the mall is insufficient to service the loan, the bank would normally need to set aside reserves for the entire loan. Under the new guidelines they could carve the loan into two pieces, with 60% that is covered by cash flow as a good loan and the 40% without sufficient cash flow would be classified as non-performing. The truth is that billions in commercial loans are in distress right now because tenants are dropping like flies. Rather than writing down the loans, banks are extending the terms of the debt with more interest reserves included so they can continue to classify the loans as “performing.” The reality is that the values of the property behind these loans have fallen 43%. Banks are extending loans that they would never make now, because borrowers are already grossly upside-down.”

    http://www.theburningplatform.com/?p=29848
    I understand they are talking commercial - a systemic illusion is also in play on residential as well as the DOW 30.

    Last edited by iismet; 02-27-2012 at 02:18 PM. Reason: puncuation

  7. #47
    Ultimate Tone Member iismet's Avatar
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    Default Re: Anybody else walk away from their mortgage?

    From Zero Hedge Today - pretty good article -

    On the “not so fast” side of the ledger, there is a bulge of distressed inventory still working its way through the “hose” of the marketplace, as owners are withholding foreclosed and underwater homes from the market in hopes of higher prices ahead. The uncertainties of the MERS/robosigning Foreclosuregate mortgage issues offer a very real impediment to the market discovering price and risk. And massive Federal intervention to prop up demand with cheap mortgages and low down payments has introduced another uncertainty: What happens to prices if this unprecedented intervention ever declines?

    Last, the obvious correlation between housing and the economy remains an open question: Is the economy recovering robustly enough to boost demand for housing, or is it still wallowing in a low-growth environment that isn’t particularly positive for housing?

    http://www.zerohedge.com/news/guest-...ive-investment

  8. #48
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    Default Re: Anybody else walk away from their mortgage?

    Quote Originally Posted by iismet View Post
    From Zero Hedge Today - pretty good article -
    Weee that's really cheerful

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