Hey Bank! Take My House, Please!

A follow-up to a post by Dean Ouellette at http://www.deansellsaz.com and a chat with a friend of mine who is contemplating a Strategic Default on her home. Is this a sign of things to come in 2010? Distributed by Tubemogul.

Category:

News & Politics

Tags:

• Phoenix real estate
• here in Phoenix
• loan modifications
• avoid foreclosure
• IndyMac

[klavanway]

@doodgeful As time goes by, more people realize that when your house turns from an asset to a liability the impact on your personal finances runs deep. What if you have to sell because you get a job transfer of out of state or have a baby? Will you be able to write a check at the closing for the deficiency? For many people, an underwater mortgage is like kissing goodbye to their kids going to college or their retirement. When you start thinking ahead a few years, it can be scary.

[klavanway]

@ddodgeful - In the end, it is purely a business decision...

[stevenbecky03]

Planning the same, but I am concerned about the second lender coming after us, because they probably won't see any money after the first is paid off. So then we will have to file bankruptcy on top of the foreclosure. Learned our lesson the hard way, the American dream is a joke. Life for most is too unpredictible to buy a house anymore. Looking forward to renting a house bigger, nicer, and CHEAPER than what we are in now.

[klavanway]

@stevenbecky03 I know exactly what you mean! i want to strongly urge you to speak to an attorney as soon as possible. The are advantages to short sales that might help you avoid deficiency actions. It is still an option for a strategic default.

[pjamesbda]

Klavanway, Thanks for this post. It is difficult to see thru the ruse. Although we need a habitat, we don't necessarily need to swim with an anchor!

Debit is the enemy. DON'T is the answer. Simple really. We have gone thru 3 or 4 decades of increasing debt. We thought is was this benign and faceless thing. It isn't. It is a trap our parents fell for, and so did we. It is time to stop building McMansions. 2 ppl can live with confort in 400 s.f. at $50. psf. Paid for in a year.

[klavanway]

@pjamesbda Scaling back is a very popular concept these days - it's refreshing to get back to what is really important and the McMansion just isn't it...

[stefrzchicago]

@swisshakilla ----- make "sence"? "U" need to take your own advice on spelling!

[Ianjcarroll]

banks and corporations make financial decisions every day, and closing down a factory for financial reasons is quite ethical in their opinion, this leads to job loss, and general unsettling feelings for all involved. SO WHY CANT HOME OWNERS DO THE SAME. If anyone can answer me this question, please do so????????????????????????????­???????????????????????????

[swisshakilla]

@samten10a learn how to spell & make sence before u post something offensive on a public forum...

[TheeLynnChase]

Great post! It is so true!

[Sassymarkrep]

My mindset right now is the same as your friend's.

[doodgeful]

I did the same thing and the bank finally gave me a loan mod, then they took it away, then gave it back. Like most people, work has precarious and I make significantly less than what I used to. I'd have no qualms about walking away from my place, Would I be a thief if I knowingly default on my mortgage? Back in the 00's, I never over-leveraged, I have no access the Fed, I never received TARP funds. I have no Authority, without authority, these is no accountability.

[samten10a]

If the home owner walks away and bank forecloses and the home is sold to cover the loan. The sale does not cover the loan the home owner is a thief. He is just another low life christen that does not up hold the law of his belief (thou shall not steel).