Yeah I dont think I'll be paying my mortgage

[Goobersmooch]

This is actually pretty smart taking the calculated risk like that.

I am impressed and he makes some very good points that he is within his right to deal with the consequences.

http://latimesblogs.latimes.com/laland/2008/01/a-tipping-point.html

[threekidspa]

I really like this.... :thumbsup:

"I don't really understand why people view a business decision by a homeowner as a terrible moral lapse. However, when large lending institutions, with access to more sophisticated information than any consumer could imagine, make mistakes affecting thousands of people worldwide, they are not excoriated and vilified with the same righteous zeal."

[Goobersmooch]

i do too...thats actually the graph that ive been reading over and over

and hes right

we dont make 'moral' decisions when it relates...we make personal business decisions

[Fish-Bait]

"I don't really understand why people view a business decision by a homeowner as a terrible moral lapse. However, when large lending institutions, with access to more sophisticated information than any consumer could imagine, make mistakes affecting thousands of people worldwide, they are not excoriated and vilified with the same righteous zeal."


That sums it up for me right there...

[threekidspa]

I would lose my security clearance if I tried this maneuver though....

[Fotno]

Hell,we'd lose our clearance if we bounced a check.

[Fish-Bait]

ARM means when you sign the mortgage, get ready to give them your arm.

[threekidspa]

Hell, its worse than that! They'd yank it for sure if they found out we've hanging out here with this lot! :D

[TheCapitalist]

The banks do not want to foreclose. They would rather have your money than the house. Better than nothing. How in the hell was he able to qualify and buy another when he could not pay for the first one? It has been "socially acceptable" to renig on debt for some time. It's called bankruptcy. That is why they tightened the requirements a little while back.
It's a good thing everyone doesn't feel that way in business. Not a good long-term strategy. What if I collected the money on contracts, then did not do the work. Good for a short while, but in the long run...

What if the bank went against the same contract both of you signed and called in your note due tomorrow? Shirt wouldn't be so funny then!

With a contract, you have a prayer; with words you have nothing but air. That being said:


A man is only as good as his word. Nuff said.

[Baloo]

I don't agree with that line of thinking. By the same token, he is getting out of it because he lost money, would he be giving money back to the bank if he made money??? I think that people who bite off more than they can chew should suffer the consequences and have to suck it up and work hard to pay their debts like the rest of the honest people in the world do. Sure, there are sometimes unforseen circumstances, like a serious illness or death in the family where people are hit hard, but just being a whiney baby because the real estate market is in the toilet is just tough and like one of the guys who responded to that article said he needs to go suck his thumb! When it comes down to it, it will just hurt the honest hardworking people who are paying their bills... just this ol' country girl's humble opinion...

[Goobersmooch]

he made a good business decision

i can guarantee you that if the bank thought they could make a few bucks by demanding full payment 5 years into the loan and subsequently forclosing...they would damn well do it

banks WILL screw you if they think itll benefit them financially

i see no reason not to screw the bank back to benefit yourself financially

its a lot different than screwing a friend or a person directly...but bankers are soul-less people who deserve everything they get

[carsalesguy]

people have been doing this for years with cars-

at a import dealership in town that i worked for that that company makes motorcycles and 4wheelers, we called it the LIGBP program (ligbid pronounced lol)

Let It Go Back Program

you owed too much on that car- so don't trade it and we'll sell you another.

[SoMissTV]

but bankers are soul-less people who deserve everything they get

I wholeheartedly disagree with this statement. The regulation of the banking industry has led to many of the problems that people have with banks today. There used to be a time where a banker (say, a loan officer) could take into account not only the credit of a person, but the character of a person. A person with little to no credit (but with good character) may receive a loan, where a person with bad character would not. Being able to assess a person as a person and not as a number often meant the difference between a high percentage of loans that were repaid on time (or early), or a high percentage defaulted. I come from a family that has served this area's banking needs for 75 years. I'm proud of what those in my family before me have done professionally, and those I run into who benefited from them have mentioned my predecessors with kind words of respect.

It's not the bankers; it's the industry.

[Goobersmooch]

i feel that your families situation and reputation is the exception, not the norm.

but i do appreciate you sharing that.... it reminds me not to fully blanket my statements

[CupcakeChic]

the whole credit system is messed up, though... if you pay all of your bills, pay for everything with cash, and live within your means, you are treated as poorly as someone with bad credit. the only time you really have to start building credit is when you are an irresponsible college student. the system worked better when you were dealing with a person, not a corporation.

[Fish-Bait]

I am glad you all are sayin' this stuff... My first loan was a sig. loan from the Bank of Lucedale. I was only nineteen....no credit whatsoever.....the man remembered me from playin' teeball thirteen years before that....I paid him 300 bucks and he wrote me a check for 1600 and I bought my first brand new boat. It was an Avalon 14' footer. He also got me a 500 hundred dollar limit credit card. That was the start of my credit. When I bought my second house my mortgage broker laughed at me because my credit score was better than his......then he called experian or somethin'....he was really pissed. I was 26 and had a better credit rating than he did lol......bagel

[SoMissTV]

I was only nineteen....no credit whatsoever.....the man remembered me from playin' teeball thirteen years before that....

That's what I'm talking about. The way personal banking was is how it should be.

[Fish-Bait]

yes...when I read your post I remembered how I got started...someone talked with me enough and realized I was honest, not just some damn jake leg that wanted to party or whatever.

[TheCapitalist]

Thanks, SoMiss. Same situation here. I went into the bank 11 years ago, hat in hand, looking for a loan for my fledgling business. My credit was ok, but we were just starting, and not a lot of income. A gentleman here in town loaned me the money i needed, to my great disbelief! I knew come heck or high water i was going to make those payments. I had to sit across from him in church every Sunday!!! We laugh about it now, but at the time... Whew!

Back to my original assertion: Why would you not honor a contract to which you signed your name? Is not a contract legally and morally binding? Consider the consequences of neither being the case.

[MSQueen]

I'm not for sure how it works, but I was under the impression that if your house was foreclosed, you would still be responsible for any amount remaining after the sale of your house at foreclosure (usually at a much-reduced price), along with any and all costs connected to the foreclosure, i.e., attorney's fees, appraisals, etc. If no payment was made on the deficiency, the bank/lender could go to court and get a judgment against you which would be recorded in the county judgment rolls.

I also believe that's how it works when you default on a car, truck, or boat loan (or any loan with collateral or security). :shrug:

[CupcakeChic]

I'm not for sure how it works, but I was under the impression that if your house was foreclosed, you would still be responsible for any amount remaining after the sale of your house at foreclosure (usually at a much-reduced price), along with any and all costs connected to the foreclosure, i.e., attorney's fees, appraisals, etc. If no payment was made on the deficiency, the bank/lender could go to court and get a judgment against you which would be recorded in the county judgment rolls.

I also believe that's how it works when you default on a car, truck, or boat loan (or any loan with collateral or security). :shrug:


that was what they told us about the house we bid on... (the one that burnt down) they thought they owners burnt it down for the insurance money because the difference on what we offered and what they owed was too great and they were still responsible for it. but they couldv'e filed bankruptcy. i mean, if your house has been foreclosed on, your credit's pretty much already messed up... :shrug: