Originally posted by proximo
This is a microcosm of why this country is in deep deep trouble - because guess what - it is becoming very obvious it does not pay to be responsible - and without the responsible people you will never be able to get a loan with what you consider remotely reasonable rates again. Do you know what that leads to - massive corruption and theft on a huge scale. This blame everyone else but myself is destroying us, and will make us a third world nation unless something changes quick.
Originally posted by nikiano
edit to ask: so, if I just stop paying my mortgage, what do I tell them when they call me up on October 2nd and ask where my mortgage payment is? Do I tell them they have to foreclose on me? Do I tell them I'm not paying because my home value has fallen? Anyone know?
Originally posted by Bombeni
reply to post by proximo
I think you are placing the blame on the wrong people; the banks/lenders are the ones who acted so irresponsibly that it is causing good people who didn't lie on their apps. to pay double or even more for a house in developments that are advertising half price sales.
So what is happening with all this bail out money that was supposed to be used to help people get their mortgages brought in line with more actual values? The OP tried to get some help but they hung up on him.
I heard a lady who works for the Govt. on NPR the other day say there are only 3 of them in that entire office, one of the offices that is supposed to handle these loan revaluations. She said it is at the point they just stare at the phones while they ring.
Originally posted by proximo
Now nikiano this idea that you have "lost" 80k is BS. You have not lost anything - how much equity could you really have after 4 years - well none obviously with the price drop, but even if it hadn't you would have very little.
Originally posted by proximo
No doubt people are walking away everywhere, and you can get away with it - that does not make it right.
Do you really think companies and people should be able to void contracts whenever they can get a better deal without consequence?
Originally posted by getreadyalready
reply to post by mythatsabigprobe
Option 2 is not always sufficient. You still have an obligation to pay the total amount of the debt! Therefore, in today's market, surrendering the property will probably only cover a portion of the debt!
Originally posted by nikiano
No, you won't pay anymore. The banks already got their bailout. PLUS, they will get my house when I walk away. Then, they can sell it.
Who suffers in the future? My neighbors.
How do I know? Because I suffered when MY neighbors walked away from their homes in my neighborhood, because that is what brought my house value down.
So, after I leave, MY neighbors will not like me. And they will walk away. And after that, THEIR neighbors will not like them. Then THEY will walk away.
The banks knew this was coming in California and Arizona and Florida.
(Even the guy on the phone tonight said "Yeah, we knew this would happen in those 4 states.") But they're not trying to stop it.
Your neighbors will not walk away - they will more likely stay and actually full-fill their obligations concerning a contract they agreed to. SOME would NEVER walk away from a contractual agreement. No one should. Its lacking in and of character.
You were warned - all of you bubble buyers... we warned ALL of you. You didnt listen. You did what you wanted to! You got a house you couldnt afford or even come close to qualifying for at ANY other time - IF NOT FOR banks throwing money at ANYONE that was actually willing to buy then lol.
Otherwise, if not for the banks giving loans to people that couldnt pay them... many of us wouldnt be with a house payment today... you probably wouldnt have gotten financed - truth be told and to make a long story short.
You got your dream, pay the team.
[edit on 11-9-2009 by Little One]
Originally posted by Good2Go
I'm sorry to hear about your situation, I hope it can somehow be turned around. Here's my little story about BofA:
I had a visa w/ a low interest rate because I transferred a balance to them. They said I was late a payment, but I wasn't because I did it online before it was due, so I was insisting w/ them to keep my apr at the low rate. They said I was late previously during the holidays (that was true, but it was before I transferred over) so the rate goes up. I was as mad as you. I told the gal, listen my parents are disgusted w/ BofA and they own quite a bit of stock in your co.- she's been talking of selling, and I'm going to tell her to sell... I know it sounds silly, but I was mad.
So it turns out the next day, big brother calls my parents to talk to them about their stocks and why they are not happy! I am a married woman with a different last name than my parents! What the heck?! It is time to longer call conspiracy what others call conspiracy.
I am sorry but the OP is what is wrong with America today, those who blame everyone else on their own problems. They blame the government and the banks for the situation they are in for the devaluing of their house yet ignore the fact that they are going to lower the home values even more for their neighbors. Many of the foreclosures that have devalued current home prices are a result of others doing the exact same thing walking away from properties they could afford to pay.
Another interesting thing about this is that when the bank loans you money which it created out of nothing, it costed nothing to make it, it wants something from you. It wants you to sign on the dotted line and pledge your house, your car, your inventory, your assets so that in case for any reason you cannot continue to make your payments they get your marbles, they get all of your assets. They're not going to lose anything on this. Whether it's expansion or contraction, inflation or deflation the banks are covered and we like sheep go right along with it because we haven't figured it out, we don't know that this is a scam. Of course we have no choice either right now because it's all enforced by law. We have no escape. We have no choice but it's even better that we don't understand it because we can't complain about it either. There you have it....
In ancient times usury was defined as interest on a loan, any interest on any loan. In modern times that has been redefined to mean excessive interest on a loan. Moderate interest seems logical to us in recognition of the fact that if we work hard for our money, we save it and surrender its use for a period of time being a sacrifice on our part and then loan it to somebody else for their venture, we're entitled to a reasonable return on that sacrifice. A reasonable interest rate is a concept that very few people have problems with, it seems logical and fair.
But what is this thing called excessive interest? Thomas Edison said, "People who will not turn a shovel-full of dirt on the project nor contribute a pound of materials will collect more money than will the people who will supply all the materials and do all the work." I wondered when I read that if Tom was exaggerating so I got my calculator out. I assumed that there was going to be a $100,000 house built. I assumed that $30,000 would have to go for land, architect's fees and permits and that kind of thing. $70,000 would go for the actual construction of the house, building materials and labor. I assumed that the buyer would go to the bank and put 20% down and then borrow the balance at 10% over 30 years. I punched in the numbers and discovered that the borrower will pay to the bank in interest $172,741 compared to $70,000 paid for the construction of the house. In other words, about 2 1/2 times as much money will be paid to the bank in interest than will be paid to those who provide all the labor and all the materials. And you may say to yourself, yes but that's fair, after all a 30 year loan is a long loan and people work for their money and sacrifice its use and loan it and so forth and deserve to be compensated. No. Not this money. Nobody worked for this money, nobody saved this money. There was no sacrifice of any kind for this money. This money was created out of nothing and I suggest that $172,741 interest on nothing is excessive!
A Talk by G. Edward Griffin Author of The Creature from Jekyll Island
Originally posted by NGBeav
reply to post by nikiano
I am sorry but the OP is what is wrong with America today...