| Posted By |
Message |
| Pages: 1 [2] |
DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
I am confused as to how this works. My husband was a residential loan broker for years-he has moved into commercial deals and is even dabbling in oil now. But when he was doing this, the banks would look at your credit to see what other properties you owned. If you owned another property the new property would be listed as non owner occupied and subject to higher interest rates, etc. Also if you are 60-90 or 120 days down on an existing mortgage what bank would give you a loan? This makes no sense...
|
Posted 8/25/08 11:53 AM  |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by melijane
I am confused as to how this works. My husband was a residential loan broker for years-he has moved into commercial deals and is even dabbling in oil now. But when he was doing this, the banks would look at your credit to see what other properties you owned. If you owned another property the new property would be listed as non owner occupied and subject to higher interest rates, etc. Also if you are 60-90 or 120 days down on an existing mortgage what bank would give you a loan? This makes no sense...
I think what they are trying to pull is what my brother and his wife are pulling
only one of them bought the house
so the other one is not on the loan
BUT- times have changed in terms of what 1 person is going to be able to be approved for
I am buying a house now alone- only b/c it's less then $200K- and I make almost 6 figures- Jake can't get me approved for much more on my own - (3 years ago I could have been approved for $1Million- now maybe $300K- but I do have 2 cars in my name)
so the odds of people that can't come up $500 more a month to cover there current situation even being able to pull this off - is slim to none
Message edited 8/25/2008 11:59:49 AM.
|
| Posted 8/25/08 11:58 AM |
| |
|
JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
I would never! Just not right! I would do whatever else I had to do to keep paying for the house I already bought. Get a 2nd job if I had to. But taking advantage just isn't right. And stupid to ruin your credit like that....not a good idea at all. I would never ruin my credit just to be able to buy another bigger house.
|
| Posted 8/25/08 12:31 PM |
| |
|
MrsPornStar
Partners in crime
Member since 10/05 14656 total posts
Name:
Mama
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
I would never even dream of this. I bought a house that was within my means. It is small and definitely not what I envisioned my first home to be. However, it was what I could AFFORD and am happy with it. I hate that people have this sense of entitlement- I want it and I DESERVE to have it. It makes me so angry. I think doing this is just plain wrong.
|
| Posted 8/25/08 1:07 PM |
| |
|
melbalalala
Little Lady
Member since 5/07 5014 total posts
Name:
Melissa
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by Kara
Posted by melbalalala
Is it okay? Nope.
Would I do it? Heck, why not? If the gov't is going to be stupid enough to bail me out, I'd do it in a heartbeat.
I appreciate your honesty.
The "why not?" for me, though, is personal integrity. There are plenty of things I CAN do in this life that I choose not to. Why? Because they are wrong (morally and ethically, if not legally). This country is sorely lacking in people who take responsibility for themselves and their actions. I refuse to add to that problem.
Thanks for the ethics lesson. I was being a bit sarcastic in my original response.
I can't blame people that take advantage of programs that politicians we have elected have put into place.
Everyone acts disgusted at the people doing these things, but you know what? They do it because they can, and they can because of the people that WE have put in office. That's just the way it is....
Of COURSE it is obscene to not pay for your actions and have the govt help them, but heck people do it all of the time.. welfare, disability, small cheats on their taxes... this isn't any different.
|
| Posted 8/25/08 2:05 PM |
| |
|
Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
I know someone who is in the process of this.
His house had neg equity.
His girlfriend did not have a house in her name.
He stopped paying mortgage, put their money together and are buying a new home in the area they want to live.
He worked it all out with the bank ahead of time
|
| Posted 8/25/08 2:17 PM |
| |
|
smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Because of the loophole people feel it's OK when in fact this is just fraud. Plain and simple! It's about looking at yourself in the mirror and having integrity.
The law was NOT intented for people to do that. It was to protect people who are REALLY in need.
Sad!!!
|
| Posted 8/25/08 2:21 PM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by melbalalala
Posted by Kara
Posted by melbalalala
Is it okay? Nope.
Would I do it? Heck, why not? If the gov't is going to be stupid enough to bail me out, I'd do it in a heartbeat.
I appreciate your honesty.
The "why not?" for me, though, is personal integrity. There are plenty of things I CAN do in this life that I choose not to. Why? Because they are wrong (morally and ethically, if not legally). This country is sorely lacking in people who take responsibility for themselves and their actions. I refuse to add to that problem.
Thanks for the ethics lesson. I was being a bit sarcastic in my original response.
I can't blame people that take advantage of programs that politicians we have elected have put into place.
Everyone acts disgusted at the people doing these things, but you know what? They do it because they can, and they can because of the people that WE have put in office. That's just the way it is....
Of COURSE it is obscene to not pay for your actions and have the govt help them, but heck people do it all of the time.. welfare, disability, small cheats on their taxes... this isn't any different.
Oh, I am sorry I misinterpreted your post!  My sentiment remains the same, but I apologize for mistakenly addressing it to you.
While the new bailout legislation makes me  often when people pull such stunts, it IS illegal. It just flies under the radar...
Message edited 8/25/2008 2:22:22 PM.
|
| Posted 8/25/08 2:21 PM |
| |
|
Sandy55
My family ROCKS!!!
Member since 2/08 1219 total posts
Name:
Sandy
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by Janice
I know someone who is in the process of this.
His house had neg equity.
His girlfriend did not have a house in her name.
He stopped paying mortgage, put their money together and are buying a new home in the area they want to live.
He worked it all out with the bank ahead of time
People are actually getting away with this???
|
| Posted 8/25/08 2:52 PM |
| |
|
|
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
I could not do it for the sheer fact that I'd be embarrased and ashamed of looking like I can't pay my bills.
And I am one of those people- I do want to sell and get a different house, though I am looking to relocate rather than upgrade.
The fact that people are able to get new mortgages makes me  It just seems so wrong!
Message edited 8/25/2008 2:58:53 PM.
|
| Posted 8/25/08 2:58 PM |
| |
|
cbcf
LIF Infant
Member since 5/08 90 total posts
Name:
Catie
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by Sandy55
Posted by Janice
I know someone who is in the process of this.
His house had neg equity.
His girlfriend did not have a house in her name.
He stopped paying mortgage, put their money together and are buying a new home in the area they want to live.
He worked it all out with the bank ahead of time
People are actually getting away with this???
i can't believe people are actually getting away with this either!! it is crazy, but what gets me is if i don't pay back my student loans i have crap credit and will be in collections etc, pretty much having a large amount of interest tacked on etc etc.
but if i didn't pay my mortgage it is okay?!? I can just get out of it and buy a new home?!
|
| Posted 8/25/08 3:15 PM |
| |
|
Sandy55
My family ROCKS!!!
Member since 2/08 1219 total posts
Name:
Sandy
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
i can't believe people are actually getting away with this either!! it is crazy, but what gets me is if i don't pay back my student loans i have crap credit and will be in collections etc, pretty much having a large amount of interest tacked on etc etc.
but if i didn't pay my mortgage it is okay?!? I can just get out of it and buy a new home?!
I know!!
it's is fricken crazy!! 
|
| Posted 8/25/08 3:20 PM |
| |
|
greenfreak
.
Member since 9/06 11483 total posts
Name:
greenfreak
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Message edited 8/26/2008 1:02:59 PM.
|
| Posted 8/25/08 4:07 PM |
| |
|
MrsRJP
Happy Spring!!!
Member since 12/07 2151 total posts
Name:
Rena Marie
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Yes it is completely wrong because I do not want my credit screwed for one and two I would not want to rely on DH for everything and put pressure on him to ruin his credit. Because the more credit put on him the more his score would go down. I think the gov't should start doing something towards these people because it is getting ridiculous. What about those people who can't afford their mortgage they get penalize and receive no help.
|
| Posted 8/25/08 6:05 PM |
| |
|
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
NEVER EVER!!!
on a side note, I find it VERY hard to believe that people all over the country are doing this with no consequences. and if that is the case, shame on our system for not having governance or regulations.
it's fraud, it's criminal and these people belong in jail!
I don't work my *** off and pay a crap load of taxes while saving up to buy a house so I can bail out irresponsible and immoral people while they move into a nicer house
these fraudulent and irresponsible people need to be out of the buyers market so it CAN correct itself - since they helped contribute to the ridiculous prices to begin with.
Message edited 8/25/2008 8:57:29 PM.
|
| Posted 8/25/08 8:49 PM |
| |
|
NYGirl
LIF Infant
Member since 11/05 274 total posts
Name:
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Agreed!
Posted by melbalalala
Posted by Kara
Posted by melbalalala
Is it okay? Nope.
Would I do it? Heck, why not? If the gov't is going to be stupid enough to bail me out, I'd do it in a heartbeat.
I appreciate your honesty.
The "why not?" for me, though, is personal integrity. There are plenty of things I CAN do in this life that I choose not to. Why? Because they are wrong (morally and ethically, if not legally). This country is sorely lacking in people who take responsibility for themselves and their actions. I refuse to add to that problem.
Thanks for the ethics lesson. I was being a bit sarcastic in my original response.
I can't blame people that take advantage of programs that politicians we have elected have put into place.
Everyone acts disgusted at the people doing these things, but you know what? They do it because they can, and they can because of the people that WE have put in office. That's just the way it is....
Of COURSE it is obscene to not pay for your actions and have the govt help them, but heck people do it all of the time.. welfare, disability, small cheats on their taxes... this isn't any different.
|
| Posted 8/25/08 9:16 PM |
| |
|
CunningOne
***
Member since 5/05 26975 total posts
Name:
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by nrthshgrl
Posted by Kara
Not okay. I am sickened that we live in a society where people feel so entitled to have something bigger or better that they think it's okay to shirk their existing financial obligations in order to get more. I am also sickened that the government makes it fairly easy for people to do just this, too.
Whatever happened to personal integrity and personal responsibility?
ITA
ITA too.
|
| Posted 8/25/08 9:36 PM |
| |
|
|
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
this is just gross. that is about as articulate as I can be without ranting...
|
| Posted 8/25/08 10:59 PM |
| |
|
Moosey911
LIF Adolescent
Member since 5/05 771 total posts
Name:
Nicki
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by melbalalala
Is it okay? Nope.
Would I do it? Heck, why not? If the gov't is going to be stupid enough to bail me out, I'd do it in a heartbeat.
I agree with this too. I didn't comment on the OP's thread, but I can kind of see where the other poster is coming from.
As a strong independant woman, if I still had good credit after my divorce, I probably would have bought a small one or two bedroom in a "not-so-good" area and been proud to "own my own home" and put my money into an investment as a single person rather than rent. Now that I have a baby on the way (and the OP now has to accomodate her parent's AND her infant)....I can understand her "need" to move to a better area and bigger house.
If the government has these small loopholes where it's possible to do this legally....without it actually being fraud, then I would probably do the same thing if placed in a similar situation. It's one thing for ME to live in a bad area by myself, but when family becomes involved---that's a WHOLE other story.
Is it morally right? Absolutely not...but people get past the gov't red tape everyday---if it's for the better for my family and I could LEGALLY take advantage of it....then I probably would.
ETA: It would also COMPLETELY depend on just how "unsafe" the area is that she is currently living in. If it's just a Section 8 area--that doesn't necessarily make it an "unsafe" place. But, if it's violence-ridden with a high crime rate---then yes, I might just do the same thing. If it's just an area that's "not desirable", then I would probably just put on an addition and call it a day until the market bounced back.
Message edited 8/25/2008 11:25:27 PM.
|
| Posted 8/25/08 11:20 PM |
| |
|
siffleuse319
LIF Infant
Member since 8/08 189 total posts
Name:
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Moosey911: You rock. Thanks for seeing things from another perspective. I admire your strength. I mean, these days, bank websites are advertising short sales if a home has been on the market for 3+ months without any activity. It just doesn't seem so fraudulent or unethical if the bank is offering this to qualified candidates.
then I would probably just put on an addition and call it a day until the market bounced back.
I just wanted to add that home additions are financed using the assumed value of the home after the construction. In some cases, the owner would be denied for the construction loan because the comparable home sales of the bigger house are far cheaper than what the cost of construction would add to the existing mortgage. If an owner faces this problem, SHE can't build either.
|
| Posted 8/26/08 6:52 AM |
| |
|
smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by siffleuse319
Moosey911: You rock. Thanks for seeing things from another perspective. I admire your strength. I mean, these days, bank websites are advertising short sales if a home has been on the market for 3+ months without any activity. It just doesn't seem so fraudulent or unethical if the bank is offering this to qualified candidates.
then I would probably just put on an addition and call it a day until the market bounced back.
I just wanted to add that home additions are financed using the assumed value of the home after the construction. In some cases, the owner would be denied for the construction loan because the comparable home sales of the bigger house are far cheaper than what the cost of construction would add to the existing mortgage. If an owner faces this problem, SHE can't build either.
We all understand your dilema. Do you think none of us have made financial mistake and we are paying/paid for them? That we did not have $hit happen to us?
The only thing is that we acted like adults and did what we had to do LEGALLY.
Here is an analogy for you:
You can steal food to feed your kid/family. That's still a crime! It does not matter how you are going to justify it. People will work 2-3 jobs to not come to that resort.
You are not stuck where you are. You can opt to sell your house. But no, you want the cake and eat it too. Come out like a new penny without owing anything. That's what the problem is!
|
| Posted 8/26/08 7:08 AM |
| |
|
sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
|
Re: Is it okay to walk away from your mortgage so you can buy a bigger house?
Posted by siffleuse319
Moosey911: You rock. Thanks for seeing things from another perspective. I admire your strength. I mean, these days, bank websites are advertising short sales if a home has been on the market for 3+ months without any activity. It just doesn't seem so fraudulent or unethical if the bank is offering this to qualified candidates.
Up until last year they were advertising no documentation loans & teaser rates to unqualified buyers, none of that makes it morally correct or LEGAL.
I own a few rental homes on Long Island and some of the people are rent to got into situations similar to yours. They had to short sell their house because they could not make the nut every month. The difference is instead of trying to work the system & still feeling entitled, they took a step back in responsibilty (as you should) and became tenants. They live a newly renovated, clean, large house with nice neighbors & when the HO Ins went up on that house(by a large amount) it was no worry to them, the responsibilty is mine. So I kick in SEVERAL hundred dollars a month for that house, unless of course something breaks & I need to pay for that too because I'm responsible for that loan. If I bought that particular house today I'd probably have $1000 in postive cash flow a month but real estate PURCHASING is supposed to be for the long haul. I could walk too, I already own a bunch of stuff & don't really need any new credit anytime soon, but that would make me a user & manipulator and I just don't have it in me to play that card.
I'm glad you're getting a few people that are open minded enough to try to see both sides, I respect that but the numbers don't lie. You are in the minority.
Message edited 8/26/2008 7:16:38 AM.
|
| Posted 8/26/08 7:16 AM |
| |
|
| Pages: 1 [2] |
