“The longer I’m in foreclosure, the better,” she said.

[tonilea]

When a person buys a home they are most likely looking at it as an investment. They don't expect to lose money from it.

Also, we are in for a rude awaking because nothing has changed in a certain area of the mortgage crisis. It will fall harder the second time.

Oh, I definitely agree that homes are an investment, but it is the mindset of "it is worth less than I agreed to pay for it, so I am not going to pay!"

Plus, a lot of the people who used their homes as an ATM, are not adding in the costs of all the toys and whatever they used their home to finance.

 

[Pugsley]

When a person buys a home they are most likely looking at it as an investment. They don't expect to lose money from it.

I don't really care what they expect. If they truly bought it as an investment, they knew (or should have known) there was risk associated with that. If they bought it to live in, they haven't lost anything until they have to sell it.

 

[ead79]

This article makes me furious! It is beyond ridiculous that people can simply stop paying their mortgages, get to keep their homes, and even get to flaunt it proudly in a newspaper article.

I don't know how to resolve this situation, but it needs resolving, that's for sure.

What ever happened to personal responsibility? I realize that some people are in terrible situations due to things like medical bills and other truly bad circumstances, but there are a lot of people in foreclosure due to bad decision making and a lack of taking responsibility.

This isn't "sticking it to the man," this is theft. They are using a home they are not paying for that the bank owns. And to be happy about it is just plain warped.

 

[kaytieeldr]

Yet I have to wonder how many people would congratulate them, or at least admire them, for "sticking it to the man", or otherwise relish the fact that a "little guy" got one over.

Problem is, ultimately, WE'RE 'the man. I'm surprised all these self-absorbed, woe is me idiots haven't figured that out yet. Yes, the banks had a big hand in the current recession; but last time I looked, THEY'RE not out of work, they're not cutting back on necessities trying to make ends meet, they're not sending their children to community college instead of Northwestern or Boston University or Harvard...

All references to 'they/their/them' indicates the banking institutions as a whole, NOT individual employees; on the other hand, my excluding 'individual employees does not in any way exempt high-level big-bonus executives who, in effect or actuality, allow this to perpetuate.

 

[bicker]

Yes, it always comes back to real people; employees and investors, who in turn include employees who invested their retirement savings in 401ks.

 

[kaytieeldr]

The whole thing just makes me sick. I don’t get how people can totally dismiss that fact that THEY agreed to a price for the house and signed a contract. That doesn’t go away just because your house is worth less now. Can you stop paying your car loan because your car isn’t worth what it was when you bought it? It’s theft, plain and simple.

Interesting theory, Pugsley. One would think not, because cars have always depreciated in value starting the moment they're driven off the lot. Of course, now, with this newly acceptable "self-designed mortgage modification program" - who knows WHAT we can get away with?

Oh, wait. No. If you stop paying your car loan, the equivalent of foreclosure is repossession. All the bank needs in that case is a tow truck and driver.

Never mind!

 

[kaytieeldr]

Oh, I definitely agree that homes are an investment, but it is the mindset of "it is worth less than I agreed to pay for it, so I am not going to pay!"

My sister bought a condo years ago. She sold it, I don't know if for a profit or not, and bought one closer to my parents. A few years ago, she sold that one at a loss - the market was down - and bought my mom's house from her. She never ONCE considered not paying the mortgage just because the value of the condo dropped below what she paid for it! We just weren't raised that way.

 

[OceanAnnie]

Problem is, ultimately, WE'RE 'the man. I'm surprised all these self-absorbed, woe is me idiots haven't figured that out yet. Yes, the banks had a big hand in the current recession; but last time I looked, THEY'RE not out of work, they're not cutting back on necessities trying to make ends meet, they're not sending their children to community college instead of Northwestern or Boston University or Harvard...

All references to 'they/their/them' indicates the banking institutions as a whole, NOT individual employees; on the other hand, my excluding 'individual employees does not in any way exempt high-level big-bonus executives who, in effect or actuality, allow this to perpetuate.

MTE. They are "sticking it" to us. So much to say that's already been said. Frustrating.

It's sad and infuriating that people have found ways for failure to be so beneficial to them and hurtful for society. (And for them not to care! Ugh.)

 

[luvillians]

A friend of mine works for one of those "big lenders" on the foreclosure side. Her job is to actually pay the people that have quit paying on their loans to get out of the house. This is in an effort to avoid a bunch of legal hassle and damage to the property (apparently some people are vengeful when being kicked out of a house they aren't paying for) which costs them money. She said they offer thousands of dollars to pay the people to leave peacefully. Broken system? Yep, I'd say so.

 

[Luvchefmic]

This article makes me furious! It is beyond ridiculous that people can simply stop paying their mortgages, get to keep their homes, and even get to flaunt it proudly in a newspaper article.

I don't know how to resolve this situation, but it needs resolving, that's for sure.

What ever happened to personal responsibility? I realize that some people are in terrible situations due to things like medical bills and other truly bad circumstances, but there are a lot of people in foreclosure due to bad decision making and a lack of taking responsibility.

This isn't "sticking it to the man," this is theft. They are using a home they are not paying for that the bank owns. And to be happy about it is just plain warped.

Totally agree

 

[Arielle22]

This has been going on in Michigan for years. It's getting to be so common that the stigma of foreclosure and/or bankruptcy is no longer there. Where you used to worry about whether or not you could get into an apartment with these incidences on your record, people are now finding that apartments are welcoming these former homeowners with open arms; especially since the payments for an apartment became lower than the payments on a house. The apartments found that they got families who paid on time and took care of the place rather than youngsters who had bad reputations for both paying on time AND trashing the apartments.

Times change. People change with them. And all the dunning, throwing up your hands in horror, and judgment calls aren't going to change a thing. The only thing that will help the situation is better jobs and more hope for the future. Right now we have little of either. So you can expect to see more stories like this in the news. You might also be surprised to find that you're likely to know one of these former homeowners in your real life; they're just keeping it on the down-low around you.

My company manages 2 apartment complexes in Michigan. We don't take residents who have recent bankruptcies on their credit reports.

I am disgusted with the behavior shown in the article. No responsible adult should be living somewhere without paying for it. I would be embarassed to try and blame my poor decision making on the mortgage company. Any time you sign a contract you should read it over and understand it before signing.

I agree with other posters that "the man" turns out to be everyday people.

 

[Carly_Roach]

Do some people lose their homes to foreclosure, absolutely but the bottom line is I'd rather be in the street with my dignity & knowing that we did all we could to save our home then the "games" these people are playing.

I find it interesting that those who say, "I'd rather be homeless" are typically those who will never be in danger of being homeless. Those whom I know who WERE homeless now say they'll do whatever it takes, by hook or by crook, to never be homeless again. If that means leaving a bank (who got its bailout but still hasn't changed its ways, BTW) in the lurch, then that's what has to be done.

People use pretty words, but unless they've had their sheriff sale and their date of redemption is fast approaching, I find it difficult to believe the sincerity of them.

 

[Mickey527]

I get SSDI. The first check I write each month is for my mortgage. I can do without some things but I need a place to live and won't throw money away renting and never owning anything.
My neighbors... Oh they make me so mad. they have been married for almost 30 years. They moved from PA because they filed bancruptcy and were evicted because they hadn't paid their mortgage in over a year.
10 years later, they filed bancruptcy again. They were living with her brother at the time.
Last year they stopped paying their mortgage because they couldn't afford it. They also went on a charge card shopping spree, 3 62" HDTVs, a new to them car (yes they charged the car, $17,000), and tons of other stuff. They also have nice clothing and eat out at least 2 times a week. And only shop at Trader Joes or Whole Foods, she won't step foot in "dirty Stop and Shop"
Well they just filed bancruptcy again, 3 times in 30 years. And they met with the bank and lowered their interest payments and extended their mortgage to a 40 year mortgage.
They just got their first new charge card (3 months after filing bancruptcy) and bought a new gas grill with all the trimmings and a complete group of yard furniture.
How can they continue to get charge cards with all those bancruptcies? I asked and she said they get the applications in the mail and fill them out and get the card right away.
And don't the banks look at their past credit history?
Oh, they have a beautiful speed boat and trailer in their garage too.
And here I am with 3 charge cards, I pay more than the minimum due each month and my limits are around $3,000 each. so frustrating, because I know in the end I am paying for everything they have.

 

[bicker]

They'll get their just rewards in the end.

David Richo's Immutable Fact #3: Life is not always fair. They may not get their just rewards in the end.

 

[BellvilleDad]

These kinds of stories make me glad that I do not contribute to the US tax base. The Germans do not spend tax euros foolishly and would never allow this kind of crap to happen. A perfect example of the dummification of America!

 

[disykat]

We had neighbors that played this game years ago - back when they still could have easily gotten well over what they paid for it and downsized to a smaller home in a different neighborhood. The only payback was that they eventually slunk away with nothing but ruined credit when they could have made money on it if they'd been smarter. Now, with housing prices sinking, people have nothing to lose except their self respect - which doesn't seem to matter to some people. Can you imagine being willing to advertise that you are doing this?

 

[Luvchefmic]

I find it interesting that those who say, "I'd rather be homeless" are typically those who will never be in danger of being homeless. Those whom I know who WERE homeless now say they'll do whatever it takes, by hook or by crook, to never be homeless again. If that means leaving a bank (who got its bailout but still hasn't changed its ways, BTW) in the lurch, then that's what has to be done.

People use pretty words, but unless they've had their sheriff sale and their date of redemption is fast approaching, I find it difficult to believe the sincerity of them.

ok :

 

[mamacatnv]

I live in one of the worst real estate markets in the country with 60% of mortgages underwater and a foreclosure rate in the top 3. My home value has plummeted but DH and I keep plugging away at the mortgage.

I know of several people who are walking away from their homes. These are people who have not suffered job losses or major financial setbacks. These are people who have decided that paying off the loan is not worth it due to the loss of equity. Their reasoning is that they are actually making a smarter financial decision than I am. They are walking away from 100's of thousands of dollars in debt that according to the "experts" in our area will take 18-25 years to recoop if it ever does. They view the decision to "ruin" their credit as a timely decision "lots of people are in the same boat, if ever there was a time to have bad credit now is it since we won't be alone". They plan to re-buy in a couple of years at significantly lower prices.

I struggle with this, I was taught that ones credit rating was reflective of ones personal character and it is really hard for me to think of destroying it on purpose. I am not talking about situations beyond ones control ie job loss etc. I am talking about willingly and knowingly just walking.

Nevada is a recourse state which means the banks could feasibly come after them for the balance due, however there are lots of "experts" who are now walking homeowners thru the process and making sure they get lien releases etc. which save them from further repercussions.

I have 2 neighbors - one across the street and one directly next door. Bonehead across the street has not made a house payment since Oct 2007 - yes, you read that right, 2.5 years. Meanwhile he has toys and a new girlfriend who he wines and dines, dinners, concerts, spa's etc which he posts all over his Facebook. Grrrr but he won't mow his lawn "Until the bank decides whether or not I can keep the house" OMG it is a disaster to look at. Neighbor next door makes twice what DH and I do but they are spenders and live way beyond their means. They figure they can get a couple of years out of the bank and have stopped making their payments. Oh, and during the boom both of my neighbors maxed out their equity for toys, trips etc. Meanwhile, here we sit, plugging along doing what we think is "the right thing to do" and wondering if it really is the right thing to do

 

[Luvchefmic]

David Richo's Immutable Fact #3: Life is not always fair. They may not get their just rewards in the end.

depends on what your definition of "in the end" is ...call it whatever you want, karma, rewards on the "other side" regardless, I believe it will come back to them, or to anyone, when you try to cheat & get something for nothing

 

[Wonders10]

Don't quote me on this because this info is coming from my mom who tends to mis-hear things occasionally, but...she heard a few weeks ago on the Today show or the morning news, etc that the banks may be able to "come after" the people that just left their house to "start over" and they have up to 5 years to do it. So say you left your house and it went into foreclosure, 4 years from now the bank could come knocking and ask for all the money that you still owed on that house. That makes me feel better for people who think it is okay to just stop paying for their mortgage. They are also the people that have kept me from being able to get one because I have student loans - despite the fact that I have a steady, well paying job and excellent credit.