eflatminor
Classical Liberal
- May 24, 2011
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Guess i should have explained better....yes, our income changed a LOT, unexpectedly.....
Gee, i wish i'd come to you for advice before we got the loan....our house was appraised at 125,000.......not a HUGE amount. Now it's worth about 75,000. We owe somewhere in-between there. I'm sure you would have made sure we did exactly the right thing because those banks just COULDN'T have been trying to SCREW PEOPLE!....
If your income changed and you can no longer afford the mortgage, you may have to default. It sucks, but that's the chance you take when you borrow money against collateral whose value fluctuates. Your credit record will take a big hit but the good news is, you'll not be alone.
However, you are dead wrong about the bank trying to screw you. They would MUCH prefer you continue to make the payments. They already have too many foreclosed properties. Sorry to be blunt, but this was bad timing on your part. You bought a home with payments that could not be sustained if your income dropped and you did so before the value of your collateral began to fall. In retrospect, you should have rented. Lesson learned, but don't blame the bank. I do however, wish you good luck...seriously.
I really DO understand what you're saying....but you really don't know the whole story and i don't want to put it all out there. I'm not trying to get out of paying my mortgage....and if they only care that we keep paying and don't want us to foreclose, i would think they would try to help a little. Obama put things in place to help people....but there's a small catch. To get the help, you can not be behind on your payments (i try not to be)...you have to be at least 2 months behind. So people that are struggling to keep their payments up to day are basically being told to default so they can get help! How is that NOT the bank or our govt's fault?
What you described is indeed the government's fault. Our President has, once again, overstepped his authority with no positive effect. So there, we agree. Still not the bank's fault. You have a contract with them. If you can't keep up your end, perhaps understandably so, you have the option of default. The bank has no contractual obligation to lower your payments against collateral that's worth less than the note. So they end up with yet another foreclosure. That's the contract.
Again, good luck.