All debt is creative financing. Watch
http://www.youtube.com/watch?v=Dc3sKwwAaCU
Is It OK To Walk Away From Your Mortgage?
i am muddling over the same question as the initiator of this post. I bought home 10+ years ago, values have plummetted to the point where i am nearly break even if i could sell it for a recent appraisal amount with a realtor (unlikely to sell due to tons of houses listed).
property taxes have grown to be approximately 10% of my gross income due to state cuts to local school funding. towns are unwilling to pool resources and create more efficienct cooperatives. teachers in this area earn more than average workers who pay their salaries and no rebalancing is in sight. The taxes are going up hundreds every year.
what's a responsible homeowner to do? should the course of action be different if values fall further and i am underwater in the home? why pay on fictitious equity when lenders are insured for and can recoup 20% of the value of every mortgage transaction? where's my leprechaun when i need him?
property taxes have grown to be approximately 10% of my gross income due to state cuts to local school funding. towns are unwilling to pool resources and create more efficienct cooperatives. teachers in this area earn more than average workers who pay their salaries and no rebalancing is in sight. The taxes are going up hundreds every year.
what's a responsible homeowner to do? should the course of action be different if values fall further and i am underwater in the home? why pay on fictitious equity when lenders are insured for and can recoup 20% of the value of every mortgage transaction? where's my leprechaun when i need him?
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George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
> why pay on fictitious equity when lenders
> are insured for and can recoup 20% of the
> value of every mortgage transaction?
That's a red-herring question. People knowingly buy new cars that lose 20-30% when they drive them off the lot, yet they continue to make the car payments. A mortgage is no different in that regard.
The real question is whether you find utility in making the payments. Would the hit to your credit rating be worth not making the payments? Is selling at a loss better than taking the hit to your credit rating?
> are insured for and can recoup 20% of the
> value of every mortgage transaction?
That's a red-herring question. People knowingly buy new cars that lose 20-30% when they drive them off the lot, yet they continue to make the car payments. A mortgage is no different in that regard.
The real question is whether you find utility in making the payments. Would the hit to your credit rating be worth not making the payments? Is selling at a loss better than taking the hit to your credit rating?
Land of the free, home of the brave, region of evasion ofresponsibility. The banks did this... the banks did that... woe is me. It's a bunch of crap... rational (?) human beings signed up for those loans. If they were too ignorant or too greedy to be realistic about the situation, then it sucks that I have to pay to cover their epic fail.
I'll concede 1/3rd of all cases to old ladies who were duped by the system. The other 2/3rds can wash my car an mow my lawn for the next 50 years because I wasn't stupid enough to jump on the train, but I'm paying to bail them out. Ironically, no one is compensating for my investment losses over the past year.
I'll concede 1/3rd of all cases to old ladies who were duped by the system. The other 2/3rds can wash my car an mow my lawn for the next 50 years because I wasn't stupid enough to jump on the train, but I'm paying to bail them out. Ironically, no one is compensating for my investment losses over the past year.
The banks are charging you higher rates to compensate for the right to walk away from mortgages in states where the law allows that behavior. Therefore, I do not see anything wrong with that behavior.
Also the banks fraudulent loan practices are a big part of what caused the housing bubble. Honest people who wanted a first house had no recourse other than pay prices that they knew were too high. If I had been caught in this situation, I would feel no remorse about bailing out.
Also the banks fraudulent loan practices are a big part of what caused the housing bubble. Honest people who wanted a first house had no recourse other than pay prices that they knew were too high. If I had been caught in this situation, I would feel no remorse about bailing out.
You have no recourse (except moving... which I'll concede, is pushing it) houses are expensive and rent is equally unaffordable. That was not the case... people just have this sense of entitlement like they are owed the ability to own property. It's a pitiful system that supports this mentality and it fosters a weak society that will continue to collapse on itself.