"WALK AWAY FROM YOUR MORTGAGE." people are told

Discussion in 'Economy' started by Neubarth, Jan 10, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Millions of people are now being advised to just walk away. Quit paying your mortgage and when they come to evict you five or six months later, just walk away. At least that way you get five or six months of rent free living. It will be another 20 years before those houses see their former valuation.
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    NY Times: Walk Away From Your Mortgage!

    The Way We Live Now - Walk Away From Your Mortgage! - NYTimes.com
    Such voluntary defaults are a new phenomenon. Time was, Americans would do anything to pay their mortgage — forgo a new car or a vacation, even put a younger family member to work. But the housing collapse left 10.7 million families owing more than their homes are worth. So some of them are making a calculated decision to hang onto their money and let their homes go. Is this irresponsible?

    Businesses — in particular Wall Street banks — make such calculations routinely. Morgan Stanley recently decided to stop making payments on five San Francisco office buildings. A Morgan Stanley fund purchased the buildings at the height of the boom, and their value has plunged. Nobody has said Morgan Stanley is immoral — perhaps because no one assumed it was moral to begin with. But the average American, as if sprung from some Franklinesque mythology, is supposed to honor his debts, or so says the mortgage industry as well as government officials. Former Treasury Secretary Henry M. Paulson Jr. declared that “any homeowner who can afford his mortgage payment but chooses to walk away from an underwater property is simply a speculator — and one who is not honoring his obligation.” (Paulson presumably was not so censorious of speculation during his 32-year career at Goldman Sachs.)
    And given that nearly a quarter of mortgages are underwater, and that 10 percent of mortgages are delinquent,
     
  3. Truthmatters
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    Its about time.

    The corps get off scott free and with bonuses for the assholes who did this to us and the little guy gets screwed for life?
     
  4. Vortex
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    Vortex Spinning Away!

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    Good rant TM but you forgot to blame Bush.
     
  5. Anguille
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    Anguille Bane of the Urbane

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    People who can afford their mortgage and understood fully the terms of the loan but who are now walking away from it because it's a bad investment are scum. Lots of these people doing this were speculators who helped create the housing crises in the first place.
     
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  6. California Girl
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    California Girl BANNED

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    Every time I think you can't get any more stupid, you surprise me.
     
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  7. Fayebelle
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    Fayebelle Member

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    Sadly that headline was written in large bold print. Had it been in "fine print" none of these "poor people in over their heads" would have been able to see it. Just like they couldn't understand that adjustable rate or interest only didn't equate to real estate garage sale as stated in their purchasing papers.
     
  8. Truthmatters
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    If you had a mortgage on a house for 450,000 dollars and the house was worth
    200,000 would you continue to pay it for years knowing the house would never in your lifetime be worth that much?
     
  9. Zander
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    Zander Platinum Member

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    Yeah!! Those people were forced to sign mortgage papers!! Evil dirty corporations.....
     
  10. Fayebelle
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    Fayebelle Member

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    Would you buy a 20oz coke for $15? Then why would you agree on a $450K loan for a house worth half that amount?
     

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