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Thread: Can't pay? Just walk away

  1. #11
    Patriot Pushrod's Avatar
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    Quote Originally Posted by somdrenter View Post
    NEW YORK (CNNMoney.com) -- Mortgage payments are set to jump. Home prices have plunged. "I'm outta here."

    …. Current lending practices have created an environment where a measure as extreme as abandoning a home actually makes sense to some people.

    Many buyers put little or no money down, so they don't have much invested in them. That leaves them with little incentive to keep making payments when a home's market value dips below the balance of the mortgage….

    …. The trend of walking away is most pronounced among real estate investors, according to Jay Brinkman, an economist with the Mortgage Bankers Association (MBA).

    Often they chose hybrid adjustable rate mortgages (ARMs) that came with low initial payments. After a few years, interest rates on these loans reset higher. But buyers thought they could count on the increased value of their homes to refinance into affordable, fixed-rate loans….
    :
    Wow Larry, you were right in your theory the other day. It IS mostly investors who have done this. Good call!
    The Zombie Virus & The Children of the Damned
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  2. #12
    Board Mommy vraiblonde's Avatar
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    Quote Originally Posted by Pushrod View Post
    Wow Larry, you were right in your theory the other day. It IS mostly investors who have done this. Good call!
    Well, for ####'s sake

    They do these stories that revolve around one idiot who made a mistake and lost their family home, acting like they are the norm instead of just some dummy, then throw in as an aside that most of the people having problems are investors and speculators.

    Then people like Renter pick up on it, get hysterical, and the housing market tanks. There should be a law against the media ruining an industry for their own gain because that is just wrong and gives the news people significantly more power than what they should have.
    "Too much agreement kills a chat."
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  3. #13
    Quote Originally Posted by vraiblonde View Post
    Hello?

    But for a homeowner who lives in the residence it makes absolutely no sense. So your home is never going to recover its value? Never ever?? The home will most certainly recover its value. ALL homes increase in value eventually, even if you just adjust for inflation.

    If they'd keep paying on the house, in 10 years it will not only recover its value but they'll have a nice bit of equity in it. So instead they what? Give up their home and their neighborhood, their yard and their room, to rent some ####hole apartment???? To rent a house and make their landlord's mortgage payment???

    That is absolutely insane. Now CNN and the rest of these loonies have gone too far with these crazy stories. And I'll bet you $10 that the "mortgage crisis" miraculously clears up the second Hillary or Barack take their oath of office.


    Refinancing, has picked up since the rates have lowered but yeah once a new president goes into office, I see confidence levels in our country going up.
    Now is the time to refi, interest rates are low and the FHA just raised loan amounts.

  4. #14
    Quote Originally Posted by vraiblonde View Post
    Well, for ####'s sake

    There should be a law against the media ruining an industry for their own gain because that is just wrong and gives the news people significantly more power than what they should have.

    It's a lot more than just the housing issue the media ruins!!!
    All it takes is one bad day to reduce the sanest man alive to lunacy. That's how far the world is from where I am. Just one bad day - Mr. J

  5. #15
    Quote Originally Posted by vraiblonde View Post

    NOW is the time to buy a home. Interest rates are sitting at around 5.5% for a 30-yr fixed, and housing prices have dropped. It's crazy to sit there, paralyzed by these hysterical news stories, and let this opportunity pass you by.
    I bought in July 06 and July 07, both times got a 5.5% interest rates. I wish they would drop lower then that.

  6. #16
    Sorry, I'm not Patch... somdrenter's Avatar
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    Quote Originally Posted by vraiblonde View Post
    What part of "fiscal irresponsibility" is not getting through to you?

    Every story that you or Patch posted is about some schmuck who got themselves in hot water because they bought more than they could afford. Would you feel the same sympathy toward someone who could budget a $300 a month car payment, then went out and bought a $250,000 Ferrari? Because that's what we're talking about here - people who bought way more than they could afford.

    Real estate investors are a different story. They do this for a living, like trading stocks. They take a hit and go, "Grrrrr" then move on to the next project. And most of the sob stories you all post refer almost specifically to investors, with a "real person" thrown in there to make it sound like IT COULD HAPPEN TO YOU!!!!

    NOW is the time to buy a home. Interest rates are sitting at around 5.5% for a 30-yr fixed, and housing prices have dropped. It's crazy to sit there, paralyzed by these hysterical news stories, and let this opportunity pass you by.
    Sorry Vrail, I have no sympathy for these guys. Zero. None.

    Take a look at the county records some time. Maybe even RealtyTrac. You’ll see that it’s not just the investors that jumped on the wagon. It is the Joe schmucks, and these are not isolated incidences.

    What’s crazy is buying a home at the top of the market. So yes, I sit here. Not paralyzed, but with no worries about which way the housing market is going. Inventory remains high in our area and we’re not even in the “selling season”. If I wanna go look at some open houses this weekend sure. Maybe, but Na, I got better things to do. There’s no rush. The homes that came on the market today will sit on the market for another few months, plus some.

    Save the “NOW is the time to buy a home” spiel for the realtors that pay for your advertising services.
    HONK
    If you’re paying someone else’s mortgage

  7. #17
    Sorry, I'm not Patch... somdrenter's Avatar
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    Quote Originally Posted by Pushrod View Post
    Wow Larry, you were right in your theory the other day. It IS mostly investors who have done this. Good call!
    psst. you missed the next line
    But families are doing it too. "If they have to stretch to make mortgage payments for a home that will not recover its value, then yes, they may walk away," he said.
    HONK
    If you’re paying someone else’s mortgage

  8. #18
    Sorry, I'm not Patch... somdrenter's Avatar
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    Quote Originally Posted by vraiblonde View Post
    There should be a law against the media ruining an industry for their own gain because that is just wrong and gives the news people significantly more power than what they should have.
    Yea, that's it. It’s not the no-doc, no money down, interest only, negative amortized, option ARM; it’s the media!!
    HONK
    If you’re paying someone else’s mortgage

  9. #19

    I'll...

    Quote Originally Posted by vraiblonde View Post
    That is absolutely insane. Now CNN and the rest of these loonies have gone too far with these crazy stories. And I'll bet you $10 that the "mortgage crisis" miraculously clears up the second Hillary or Barack take their oath of office.


    ...take that bet. Real estate gambling knows no party. Everyone in DC is in favor of this stupid stimuli plan AND in support of bailing each other and their buddies out on those Vegas condo's they're all stuck with.
    ADHD; Interdisciplinary

  10. #20
    Sorry, I'm not Patch... somdrenter's Avatar
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    Quote Originally Posted by vraiblonde View Post
    They do these stories that revolve around one idiot who made a mistake and lost their family home, acting like they are the norm instead of just some dummy, then throw in as an aside that most of the people having problems are investors and speculators.
    Investor or "one idiot", it matters little when the net result is the same.
    HONK
    If you’re paying someone else’s mortgage

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