I made a very tough decision today...

Originally posted by amc621
reply to post by Sly1one

 

Are you looking for a socialistic society then? From reading what you would like that seems to be socialistic.

No everyone needs to take care of themselves and be completely self sufficient and independent. Absolutely not socialist.

Originally posted by LadySkadi
reply to post by Sly1one

 

I decided to "walk away" from my house. Yup, I decided that because I am upside down and in over my head on what was supposed to be an investment there is absolutely no good reason to submit my finances to the obvious drowning.

Awesome. Another dead beat.

If "dead beat" means: refusing to submit myself to servitude of increasing debt because corrupt illogical elitist bankers wanted to do an epic transfer of wealth and destroy a once great country all in one swipe, then yes by all means I'm a dead beat.

reply to post by Sly1one


No. dead beat means refusing to take responsibility for your own choices, choices you willingly made.

But ya, go ahead and justify it (to yourself) however you wish... It doesn't change the color.

reply to post by Sly1one


I don't blame you for walking away buddy. Tough decision.

But I do caution against not diversifying. If you are old enough to remember, which if you have a mortgage indeed you are, the run in Nasdaq in the mid 1990s. Everyone and their brother was a daytrader back then, people could do no wrong. Well, you know the rest of the story.

All markets are cyclical. That goes for commodities -> housing. Be smart. Best of luck, hope you earn everything back and more.

Originally posted by Sly1one

Originally posted by LadySkadi
reply to post by Sly1one

 

I decided to "walk away" from my house. Yup, I decided that because I am upside down and in over my head on what was supposed to be an investment there is absolutely no good reason to submit my finances to the obvious drowning.

Awesome. Another dead beat.

If "dead beat" means: refusing to submit myself to servitude of increasing debt because corrupt illogical elitist bankers wanted to do an epic transfer of wealth and destroy a once great country all in one swipe, then yes by all means I'm a dead beat.

BUT...

When you thought YOU could FLIP it and make a quick buck then it was a great investment right?

reply to post by Sly1one


Then your bigger challenge is getting people to change rather than the government. When this country was started there were no lazy people, everyone was working hard. That is the way it is today. There are no EVIL corporations looking to make people more in debt, rather it's the opposite. Banks want people to have money.

Originally posted by amc621
reply to post by LadySkadi

 

He is upside down and in over his head with a 1000 a month mortgage. But has money to buy silver.

I don't believe this post for a second.

sigh, I'll explain this again.

-I have money to buy silver if I am not paying that mortgage...easy to understand no?
-I'm upside down because the house is not as valuable as it was when I bought it so it is a depreciating asset.
-It is common sense to rid yourself of obviously depreciating assets and invest into those that maintain and gain value.
-My payment and Interest rates have remained the same but unfortunately so has the total balance on my house. Because of this I owe more than what it is value for so again, silly to keep feeding resources into that.
-I cannot refinance, because the value has dropped past the equity and I haven't owned long enough to build up enough equity to refinance, its not an option. I cannot get a lower payment, balance, interest rate.
-Selling is not an option because I won't be able to sell for what I owe if I'm even able to sell at all...

Sooner or later people will start to realize that what was once an unethical and frowned upon circumstance (foreclosure) is not (because of the current economic turmoil) such a bad idea. It will become a business strategy that can get some people on some more "firm" ground, instead of "waiting to see" what happens in such a hostile economic environment.

What if Mortgage Walk-Aways Become Socially Acceptable

I made a very tough decision today

Me to
I have three different jobs I do and one is in the foreclosure market Im the guy that breaks in and changes the locks while the occupants are gone. Today I had to over see and eviction and the occ. was there and wouldn't give me access to the home. Under sheriffs watch I drilled out the locks so the trustees could do the eviction. The guy told me I had no right to do this and I told him you should of payed your mortgage.

IMHO If I were you I wouldnt keep your gold in the home you are walking away from. You might just come home one day and find your locks are not yours any more.

Originally posted by SLAYER69

Originally posted by Sly1one

Originally posted by LadySkadi
reply to post by Sly1one

 

I decided to "walk away" from my house. Yup, I decided that because I am upside down and in over my head on what was supposed to be an investment there is absolutely no good reason to submit my finances to the obvious drowning.

Awesome. Another dead beat.

If "dead beat" means: refusing to submit myself to servitude of increasing debt because corrupt illogical elitist bankers wanted to do an epic transfer of wealth and destroy a once great country all in one swipe, then yes by all means I'm a dead beat.

BUT...

When you thought YOU could FLIP it and make a quick buck then it was a great investment right?

Actually no, at the time of purchase I intended to stay for the duration. However my life circumstances changed greatly in a short period of time. I got married, my wife is taking care of her Alzheimer/dementia father who lives with us, we just had a baby and the house is entirely too small for our family.

I had every intention of refinancing, but I can't. I have thought about all the decisions I could make that could get me out of the financial trouble this house has become for me and my family and all of the "socially accepted" paths were impossible.

I will not take my family to financial ruin and insurmountable debt because of "social pressures" pride,ego, my responsibility to my family supersedes pride and ego.

reply to post by Sly1one


I mess in the metal mkt. a little and what I have learned is that when silver/gold is thru the roof; it is worthless because no one will be willing to buy it back from you. It looks pretty though.

reply to post by Sly1one

Hey sly one...why not? Isn't this how the Bankruptcy King donald trump has managed to stay rich? Only an idiot would NOT walk away from being underwater.

There is alot of talk about the need to invest in precious metals such as gold and silver but if the "Big One" is coming as you and others say I dont see how gold or silver is going to help you as much as you are hoping it will. As someone has already mentioned "water" and "food" and shelter are the only true commodities that will sustain life. I know there are so many suffering just to have a warm bed, a good roof and some food on the table and with unemployment being what it is, trying to maintain these have become a HUGE challenge for many. I would offer a few simple suggestions, sell everything you dont absolutely need, conserve and SAVE as much as you are able, if you have a home stay there as long as you possibly can, I dont know where you live but I know even here is Indiana there are jobs to be had even if the pay sucks, it is better than nothing, try and find jobs that pay you cash if available or offer your services for payments in cash. I understand the dollar is in crisis mode but as long as it stays legal tender then save as much as you can. I know this all may sound "yeah right....." but I have seen difficult times myself and ever since I became self sufficient people have been saying the "Big One" is right at the door, I even remember when they were telling everybody to save in U,S, Mint coinage vs. paper but paper still works. I dont have much insight in precious metals or other ideas of what to invest in but I do have a good 35 years of "Life on your own" in order to understand that one person's idea or opinion is not always in your best interest.

Nothing comes easy in this life but despite all the despair that fouls the air there is a path to hope because if I was able to find a small piece than anybody can. If you ever have the opportunity to obtain a home with some modest land with a good water source and an area you can grow your own food then you have as good a chance to continue breathing then the next man or woman.

Originally posted by Rockpuck
reply to post by Sly1one

 

And what will you do when the SHTF doesn't ever hit the fan?

You'll be on the streets with a pile of silver? I don't get it.. precious metals are intended as a hedge, not a total investment because it's not liquid. The average home will double in price every 10years .. average gold/silver is 100-200% increases.. but real estate is like metals, it's tangible and if you wait long enough a good hedge for inflation. Also the sale of metals is something you report to the IRS for profit, a home is not.

But what ever.. do what you gotta do.. while us responsible people pay our mortgages to not be a burden on society..

Also I think you miss the point of metals. Metals do not increase your wealth, they maintain it.. this is why you don't invest in it entirely, only a portion around 20-25% ish should be in metals at any one time.

If you buy Silver at $30/oz and you sell it for $180 .. that $180 has the same buying power as $30 ...

Think of it this way.. in the 1980's if you bought a snickers bar for $0.35 and waited till 2010 and sold it for $1,25 you'd think, holy cow what a profit.. but what could you buy for $1.25? Another snickers bar.

I think you need, desperately, to see a financial adviser.

edit on 12/6/2010 by Rockpuck because: (no reason given)

I think you are missing what I am saying, I understand your snickers analogy and I have seen several financial advisers. I guess what I'm alluding to is that my money in silver will be worth more than that same amount of money in paper dollars when SHTF. I said previously if things don't go down hill I can resell the silver with yes a possibility of loss. I will not be living on the street my wife and I specifically never had eachother on any of our assets or debt. She has a great credit score and we will use her purchasing power IF that is needed. I will not be living on the street lol...

I think it is a misconception to think small simple fish like myself are a "burden on society" when ultimatley it is the corrupt politicians and bankers who create these situations with their unquenchable thirst for money and power.

Again as the title says this was a very difficult decision and i didn't jump hastily at it. I thought and talked and discussed and thought more about it.

Yes I initially bought the house with the illusion it would be a appreciating asset much like many of the other small simple people of the US but because we were ignorant to the banks handing out lavish unsustainable loans we couldn't see it was a bad idea"

Why would I remain loyal to an economic system that does such things?

Originally posted by starless and bible black
reply to post by Sly1one

 

Hey sly one...why not? Isn't this how the Bankruptcy King donald trump has managed to stay rich? Only an idiot would NOT walk away from being underwater.

Yes this is exactly what trump does except he had to do it in calm waters with a relatively certain market. Thanks for the sign of common sense.

The whole deadbeat accusation doesn't fly when talking about a mortgage.... A mortgage is a secured loan, the house is the collateral...

You had an obligation/contract with the bank. It seemed good enough to borrow to fulfill your needs but when the going gets rough you dismiss it. Regardless of whether we all think the banks are douchebags, and they are, strategic defaults are not going to help. I think its arrogant to say you won't commit to your legal obligation yet in the same breathe there's money for silver. However it's your decision of course, good luck with stacking your PMs and I hope your situation improves.

brill

Ok I want to give you a word of warning here

If a bank thinks your are engaged in a strategic foreclosure i.e. not paying your mortgage even when you can afford to then they can sue you for the difference between what you owe on the mortgage and how much they can sell the house for once they reposes it plus I presume any fees they incur during the process and court fees

First of all, you are defaulting on a loan that you agreed to pay back, shame on you.

You can afford your payment, but you're just choosing not to.

Don't count on living off your wife's credit score. Is her name on this mortgage also?
If you try to rent, you will be listed as a tenant in the residence and they will check your credit score and it will hurt you.

Personally I don't believe your story, but to each his own. You signed, you should pay.

Originally posted by davespanners
Ok I want to give you a word if warning here

If a bank thinks your are engaged in a strategic foreclosure i.e. not paying your mortgage even when you can afford to then they can sue you for the difference between what you owe on the mortgage and how much they can sell the house for once they reposes it plus I presume any fees they incur during the process and court fees

Not in Colorado, it is a no Recourse State

No Recourse

Are you sure you have researched this properly?

This is part of the Colorado foreclosure procedure

DEFICIENCY JUDGMENT: If the debt on the home exceeds what the lender thinks the home is worth, a homeowner could still owe the lender money even after the loss of the home. If a court can be convinced that the lender bid less than a good faith estimate of the property's value (minus holding expenses) at the public auction, then a DEFICIENCY JUDGMENT for additional debt may be avoided. Otherwise the owner of the property will be held responsible for the deficient amount.

link

I wonder how seriously your taking this if you don't know something that took me 3 minutes to find with google