Strategic default

iVillage Member
Registered: 10-25-2006
Strategic default
51
Mon, 08-16-2010 - 3:06pm

How about this for sticking it to the younger generation?

http://blogs.reuters.com/deep-pocket/2010/08/13/strategic-defaults-why-older-americans-walk-away-from-mortgages/

Any 68 yo with $6,000/mo in retirement income should not be able to walk away from his mortgage. I had no idea that in some states they cannot go after the other assets of these defaulters.

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http://www.pnhp.org/news/2009/october/meet_the_new_health_.php

http://www.youtube.com/watch?v=DQTBYQlQ7yM

iVillage Member
Registered: 01-25-2010
In reply to: janetlz
Wed, 08-18-2010 - 7:18pm
Sounds like Robert Rimer

xvx Pictures, Images and Photos


iVillage Member
Registered: 08-14-2010
In reply to: janetlz
Thu, 08-19-2010 - 12:24am

Virtually everyone buying a home has to purchase default insurance. The fact that those quasi-government groups known as Fannie and Freddie failed to collect enough to cover their risk is not the fault of the ones defaulting.


Do you also blame the unemployed when the state runs out of unemployment funds?


This thread has taken some other disturbing tones. It sounds almost as if those on the left are saying someone underwater in an investment property should continue tossing their money down a pit. What happens when that pit sucks down their other investment properties too? You now have several homes in default instead of one.


iVillage Member
Registered: 07-15-2010
In reply to: janetlz
Thu, 08-19-2010 - 12:27pm
Sorry. Not familiar with the name.


>>Luck is what you call it when preparation meets opportunity<<
iVillage Member
Registered: 07-15-2010
In reply to: janetlz
Thu, 08-19-2010 - 12:30pm

>>Virtually everyone buying a home has to purchase default insurance. The fact that those quasi-government groups known as Fannie and Freddie failed to collect enough to cover their risk is not the fault of the ones defaulting.<<

No. They don't. But the banks do demand it when those doing the borrowing don't meet the requirements "not to have to".

>>This thread has taken some other disturbing tones. It sounds almost as if those on the left are saying someone underwater in an investment property should continue tossing their money down a pit. What happens when that pit sucks down their other investment properties too? You now have several homes in default instead of one.<<

That's the best thing that could happen so long as the bailouts that artificially manipulate the market stop prolonging the problem.

>>Luck is what you call it when preparation meets opportunity<<
iVillage Member
Registered: 08-19-2010
In reply to: janetlz
Thu, 08-19-2010 - 6:19pm
How does this "stick it" to the "younger generation?"
iVillage Member
Registered: 08-19-2010
In reply to: janetlz
Thu, 08-19-2010 - 6:23pm
Are the "rich" walking away from secondary properties?...or their primary residences? When an investment property is upside down, it doesn't make financial sense to keep paying on it...but it's tougher to walk away from a primary residence, which is probably the case with most "middle-classers."
iVillage Member
Registered: 08-19-2010
In reply to: janetlz
Thu, 08-19-2010 - 6:25pm
We don't blame the "lazy working class"...just Obama.
iVillage Member
Registered: 08-19-2010
In reply to: janetlz
Thu, 08-19-2010 - 6:28pm

>>> Will the 20-somethings of today be able to afford even a FIRST home?

Of course. Even at the height of the housing boom, 20-somethings were buying homes. Now, the houses will be much cheaper, making it even easier to afford one.

iVillage Member
Registered: 10-25-2006
In reply to: janetlz
Thu, 08-19-2010 - 7:09pm

<>

Kind of like playing hot potato with mortgages, right? And then getting a gov't bailout to save the Holy Investment Banks. Oh yeah....the rich should do what makes financial sense and let the peons bail them out with taxes on their toilet-scrubbing-, brick-laying-, and cooking-earned income.

TWISTED!!!!

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http://www.pnhp.org/news/2009/october/meet_the_new_health_.php

http://www.youtube.com/watch?v=DQTBYQlQ7yM

iVillage Member
Registered: 08-14-2010
In reply to: janetlz
Thu, 08-19-2010 - 7:15pm
"No. They don't. But the banks do demand it when those doing the borrowing don't meet the requirements "not to have to". "

That is additional insurance.


Most every loan issued has to be a conforming loan. All conforming loans carry insurance (the Fed's backing).