Foreclosure and Short Sell !!PAYBACK!!

[scandal 951]

Maybe I am old fashioned but when you took out a loan of X dollars at y% you ae commited to paying the amount that you signed up for. I think many people are not only trying to lower the interest rate but the principle as well. As long as I remeber people have been welcome to refience their loans with their original lender or any other one that wanted to offer a better rate. Usually if you folded the fees back into the principle you ended owing a bit more but would make it up in aying less. Stop whining and refiance if you don't like your payment. What most people want is to get out of being upside down. I kind of look at it almost like you hire an employee for say 30 K a year and then you find out they spend half their day online looking at forums instead of working you should jusgt be able to start paying them 15 K a year because their labor is worth less ?

Well you could just fire your employee for non-performance of duties.

I do agree with you and others who have posted regarding housing however. Nobody ever put a gun to anyone's head to buy a house. There is full disclosure on the HUD forms you sign telling you the cost of the property, your downpayment, the principal sum of the loan, your initial loan rate, your monthly payment P&I, your monthly PITI, the readjustment rate (if any, on an ARM loan), the frequency of readjustments (if any), the the total amount of interest you will pay over the life of the loan. Every homeowner in America who takes out a mortgage receives and signs that s/he has read an understood his HUD statement. I simply don't understand the problem in 90+% of cases. In some cases fraud has been committed. A dishonest mortgage originator or broker failed to properly disclose the loan terms. That's wrong - in such cases a homeowner should sue civilly for damages, and perhaps the state should prosecute criminally. But other than in cases of fraud - this is a straightforward matter of honoring contracts.

I am sympathetic to the plight many are in. And as a homeowner I would not like to see entire neighborhoods go into foreclosure and depreciate property values. An argument can be made that for the good of all, it's worth having some public money invested in programs to save certain borderline homeowners that would be able to make it with some easing of terms but are going to fail otherwise. Perhaps. Maybe. I'm not sure if I really buy into that. I think the harm of losing the moral hazard to reckless investment decisions is worse in the long run than saving some property values in the short run.

[Sylvia_n_Joseph 3]

Here is someone more than a little upset over lossing his home

Pipebombs found is foeclosed home

[doodlebugg 10]

I am in a similar position. My ex husband owns a kitchen cabinet company building and refacing kitchens. Once the mortgage crisis started his business started to tank and as a result my child support payments ceased to exist. Because of that I was running late on my mortgage payments and soon fell behind by a few months. I'm working with Hope Now but the bank is being an azz about the whole thing and pushing me to do a shortsale. Hope Now is very helpful and I recommend it to anyone but beware........contact the government regulated Hope Now and not a fraudulent company that asks for money upfront. No money should be paid at all to Hope Now for the services since they work off of a grant.

If my child support hadn't ceased I'd still be paying my mortgage as usual and wouldn't really expect anything of the bank. I bought this home 7 years ago and figured we'd be here until the kids are out of high school. My value has gone from $450k to probably around $300k, but seriously it will pick up in the next 10 years. If I were a betting girl I'd put money on it.

[justashooter 430]

Maybe I am old fashioned but when you took out a loan of X dollars at y% you ae commited to paying the amount that you signed up for.

+100

[Caladan 19]

Maybe I am old fashioned but when you took out a loan of X dollars at y% you ae commited to paying the amount that you signed up for. I think many people are not only trying to lower the interest rate but the principle as well. As long as I remeber people have been welcome to refience their loans with their original lender or any other one that wanted to offer a better rate. Usually if you folded the fees back into the principle you ended owing a bit more but would make it up in aying less. Stop whining and refiance if you don't like your payment. What most people want is to get out of being upside down. I kind of look at it almost like you hire an employee for say 30 K a year and then you find out they spend half their day online looking at forums instead of working you should jusgt be able to start paying them 15 K a year because their labor is worth less ?

You are 100% correct. People are either stupid or insane to think you can refinance because the value of the collateral went down.

Can I refinance my car every month based on this logic?

Seriously. That's not how loans work.

That said, the banks seem to be taking the easy way out for them (short sell, foreclosure) instead of working with the homeowners, which to me is immoral if legal. Many people who are underwater will be fine in a few months, and would continue to be good paying customers if extended a little mercy. College loans permit short forbearance periods or graduated plans; there has to be a way to accomplish the same thing for homeowners.