DUH!!..69% Say Those Struggling With Mortgage Should Sell, Buy Cheaper Home

[Katiegrrl0]

In most if not all states, the bank who loaned you the money is on the hook for the 15K, so that's a false argument. Even if you have to file for bankruptcy, are we lucky to have such provisions in the law to protect borrowers who made bad choices? Bankruptcy is not the end of the world, it's a chance at a fresh start. Lastly, rather than getting a loan to buy a new home, how about renting one? One that you can afford?

Not true the original debtor is on the hook for the difference in many if not most cases. That is why people hang onto their homes.

Again: Not in California, of that I am sure. You'll have to research the laws in your own state. If if you're on the hook, that's what bankruptcy is for. Either way, not my problem.

Why do you think the lender made a bad decision?

Lots of lenders (not all) made monumentally bad decisions lending money on homes and to investors they should not have. Again, not my problem. Let them eat the losses and let those banks that made smart loans take their market share.

Of course it's not your problem and that means everyone else was a fool and you don't really care what happens to the rest of the country. I see.

 

[The Rabbi]

When your mortgage price is higher that the current value of the home how do you suggest the they sell the house and buy cheaper? Seems like a real problem to me.

When you make a bad investment choice, you lose money. While it may be unfortunate for the investor, it's not a problem to rent.

What makes you think someone made a bad investment?

Say these people bought a home when both had decent jobs and a job with a very good income was lost and not able to be replaced. Their financial situation changed. Why do people think that someone had to have done something wrong? I know two families to which this happened. One survived as the job was replaced in a few months. The other one has been a nightmare. Both made good investments and could easily afford what they bought. How were they to know their world will change.

Life sucks that way and I hate it for them.
But like hell will I help bail them out. I don't care whose fault it is.

 

[The Rabbi]

It is not that simple.
Many of those people are underwater in their mortgage.
Many of these folks were stupid enough to take out 2nd mortgages to put in a pool, or build a super deck or turn the basement into a very expensive home theater.
They may owe $375k but the value is $280k...where the heck are these people going to get $10,000's to pay the difference? Many of them are only paying interest payments.

Geezus. No wonder this country is screwed.
It's called bankruptcy. You can't pay your debts, you bankrupt. In some states even that isn't necessary. Just send the keys to the lender (jingle mail) and you're done. Most people end up renting as nice houses for less money than they were paying in mortgage payments.
Another example of a wasteful governmental program.

This is as good a post as any to explain the fallout that would occur if everyone underwater tossed their keys.

The people who say those who are underwater should sell their house are cutting their own throats.

The money for those loans came from somewhere. If someone defaults on their loan, that means someone else loses a shitload of money.

That someone is you. The people who are holding the paper on those loans are your retirement fund managers. And they are also holding tranches of CDO-squareds which blow up in the event of defaults. And they are holding tranches of synthetic CDOs which blow up in the event of defaults.

So go ahead. Cut your own throat and push these people into default. Then watch your 401k drop to zero.

You don't understand economics or the economy much, do you?
If you can't afford to pay the mortgage then the value of that mortgage drops substantially. It in fact drops to the resale value of the underlying asset.
If someone can afford to make their payments, why are we bailing them out?
If they can't afford to make their payments, why are we bailing them out?
There is no rationale for government intervention in this scenario except to get votes in an election year.

 

[grunt11b]

Thursday, March 22, 2012

While most Americans agree now is not the best time to sell a home, they feel stronger than ever that those struggling to pay their mortgage should sell their home and buy a cheaper one rather than receive help from the government.
69% Say Those Struggling With Mortgage Should Sell, Buy Cheaper Home - Rasmussen Reports™

Almost 70% think logically that DUH.. if you are living in a home you can't afford..
SELL IT!!!!!

I have a better idea, how about obama and his cronies get off of home owners nut sacks and leave them alone to pay their mortgages like they where doing just fine before he fucked everything up.

 

[syrenn]

You know you need to bring cash to closing to sell for a loss. How do you propose people bring cash to closing when many are barely getting by? Think about it. Try not to respond with something that sounds like a solution out of some Utopian society you've created in your head.

Good point...so you loose loose for your investment in a home. Sorry, that that's how it works. They gambled on their future...and lost. Nothing utopian about it.

You gamble on the market staying at its level or going up
You gamble on staying healthy long enough to pay back your loan
You gamble on your income being steady.
You gamble when you sign on the dotted line that everything will work out and you, and you come out a winner.

Buying a home was a not a serious gamble if one bought in a good area until the bottom fell out. You didn't have something like this happen to you so you seem rather flippant about your fellow Americans plight.
As long as number one is fine no one else's situation seems to matter. Okay.

Any mortgage is a gamble. I knew that when i signed on the loan papers.

If this is your situation i am very sorry for you and hope you find a way thought it. But you gambled that the bottom would not fall out of the market...and it did.

 

[g5000]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

 

[eflatminor]

You didn't have something like this happen to you so you seem rather flippant about your fellow Americans plight.
As long as number one is fine no one else's situation seems to matter. Okay.

Why not then bail out any investor that looses money after a downturn in the economy and/or losing their job? John Corsine bet the house on European debt and lost. Should we bail him out too? What's the difference?

 

[saveliberty]

I am shopping for a home where I will retire. I am seeing homes that were built in the 80's going for less than the cost of building them at that time. Many good people are taking a real bath on a situation they did not create. Really, really sad.

What you're stating certainly has happened to a number of people, but an equal number bought out of greed. Thoughts of flipping or watching their homes appreciate at double digit rates blinded them to the downside.

 

[The Rabbi]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

Repeating stupid remarks only makes you look more stupid.

 

[Katiegrrl0]

Wrong, if a home is foreclosed on, then resold for less than the amount owed than the original debtor still owes the difference, same as when a vehicle is repossessed.

Then try buying a home with a foreclosure and a bankruptcy on record. That will really work.

So rent!

Rental's check credit as well. They also charge deposits and extra rent. When you have three kids it's hard to find something that in this situation is affordable.

 

[saveliberty]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

No real estate in my 401(k) amigo.

 

[g5000]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

Repeating stupid remarks only makes you look more stupid.

You have no clue how the secondary market really works. Where do you think all the money came from to loan to these people?

Your pocket! All that money you invested in your 401k? It's in all those houses, genius.

 

[eflatminor]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

Only if your 401k holds mortgaged backed securities. Not my choice but you're free to gamble. By the way, how's the stock market doing? 401k melting down?

Stock Market Today : Stock News, Market Watch

 

[saveliberty]

Then try buying a home with a foreclosure and a bankruptcy on record. That will really work.

So rent!

Rental's check credit as well. They also charge deposits and extra rent. When you have three kids it's hard to find something that in this situation is affordable.

Is there anything you don't have an excuse for?

 

[eflatminor]

Then try buying a home with a foreclosure and a bankruptcy on record. That will really work.

So rent!

Rental's check credit as well. They also charge deposits and extra rent. When you have three kids it's hard to find something that in this situation is affordable.

Utter bullshit. It may be hard to find something that's affordable and desirable but no one is entitled to any particular standard of living. If you earn enough to have bought a home with a mortgage, you can rent. Move where you can afford to live, just like everyone throughout history has done.

 

[g5000]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

Only if your 401k holds mortgaged backed securities. Not my choice but you're free to gamble. By the way, how's the stock market doing? 401k melting down?

Stock Market Today : Stock News, Market Watch

I'm doing quite well. During the global credit crisis, I actually made more money than I have ever made. I do my own trading.

You should read the fine print of your fund manager's portfolio. When you see they invest such-and-such amount in bonds and you think you are safe, you aren't. In many 401k funds, "bonds" also means "bond derivatives".

And derivatives traders have a way of helping pension fund managers find ways around the rules of their funds so they can buy all kinds of exotic shit as "bonds".

You are more exposed than you think.

 

[The Rabbi]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

Repeating stupid remarks only makes you look more stupid.

You have no clue how the secondary market really works. Where do you think all the money came from to loan to these people?

Your pocket! All that money you invested in your 401k? It's in all those houses, genius.

No I didnt fund a single loan. Real estate loans are a big part of the financial market, true. But they are not 100% of the market. And most loans are performing.

 

[eflatminor]

I'm doing quite well. During the global credit crisis, I actually made more money than I have ever made.

Excellent, I am sincerely happy for you.

You should read the fine print of your fund manager's portfolio. When you see they invest such-and-such amount in bonds and you think you are safe, you aren't. In many 401k funds, "bonds" also means "bond derivatives".

Correct. Thanks, I know exactly where all of my investments are.

 

[g5000]

Repeating stupid remarks only makes you look more stupid.

You have no clue how the secondary market really works. Where do you think all the money came from to loan to these people?

Your pocket! All that money you invested in your 401k? It's in all those houses, genius.

No I didnt fund a single loan. Real estate loans are a big part of the financial market, true. But they are not 100% of the market. And most loans are performing.

And yet here you are, saying they should stop performing.

Real estate loans have never been 100 percent of the market, but look what happened four years ago when a fraction of them started defaulting.

Global credit crisis.

 

[saveliberty]

I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!

Repeating stupid remarks only makes you look more stupid.

You have no clue how the secondary market really works. Where do you think all the money came from to loan to these people?

Your pocket! All that money you invested in your 401k? It's in all those houses, genius.

Are you this stupid on weekdays, or does it spill over into the weekends?

Your 401(k) investment is NOT in your pocket. That would be your regular savings. Those are protected by FDIC insurance. Unless you just keep it in your pocket.