Nm

Message edited 8/25/2010 10:49:51 PM.

Re: What do you make of this?

I've heard of it. I think its disgraceful. They are "fed up with" the housing market, so lets make it worse by flooding it with foreclosures

Re: What do you make of this?

I think it's complete and utter BS. They CHOSE to buy a house at the price they bought it at and AGREED to make these payments. Shame on them.

Re: What do you make of this?

I think she will only screw herself in the end, as her credit will forever be ruined.

And what if her DH leaves her?

Stupid idea, if you ask me.

I think everyone is fed up with certain things, and you can cut corners and do under-hand stuff, but in the end, you will have to pay the piper.

Re: What do you make of this?

I know someone doing this as well. She bought when the market was super high and now shes owes more than the house is even worth...

She is getting married in 2 weeks and they just bought a house in her FH's name to move into...

I don't think its the right thing to do but I can't say what I would do in that situation.

Re: What do you make of this?

Re: What do you make of this?

Re: What do you make of this?

As someone whose house is worth way less then what we paid for it, I can understand how frustrating it is. However, I would never do what she is proposing.

I'm not even sure it will work out for her in the end. Not a lawyer but don't see how she can just take his name off the mortgage and he would be free and clear of this. Maybe I am just naive to the sneaky crap dishonest people get away with.

Re: What do you make of this?

Re: What do you make of this?

I think the fact that an attorney advised her to do this is even scarier than the fact that she's doing it.
I mean, for some people, yes, they need to do this if they lost their jobs and can't find another, have serious medical issues with bills that they can't keep up with, etc., but I think it's incredibly irresponsible to do this the way your friend is.
I mean, I get it, people's houses are now worth less than what they paid, but they never should have bought it in the first place if they couldn't afford it to begin with
It's upsetting because I waited and waited to buy a house so that I could buy something I can afford with my husband. I lived in two rooms with my husband and my daughter at my parents' house to save money. I sacrificed so much just to have a house that i could afford and there's people out there just not caring about that responsibility. And we'll all pay the price.

Re: What do you make of this?

Posted by ToriaRae
She stopped making payments on her mortgage . She told me that most of her clients are doing this as well b/c they are fed up with the current housing market. She told me that she went to see an attorney and he advised her to do this. I find this very strange.

Re: What do you make of this?

One of my mom's co-workers is doing this as well. It is very irresponsible and this is the whole reason why the market is down. I understand if there are extenuating circumstances, but this is not the case for her.

Re: What do you make of this?

Re: What do you make of this?

wow. Some people's responses are very intense Jeez.

As for the whole concept of just not paying your mortgage and eventually getting kicked out only to get another house in a different name... I've never even heard of people doing this. Sounds pretty extreme to me. I think that if it were me, I would rather just try to put my house up for sale and get a cheaper one (or apartment) rather than just letting my credit go to crap. I'd feel very irresponsible to do something like that. I don't understand why people buy houses that they can't afford... but of course I do understand that in time situations can change esp with the economy nonsense. I still think this is kind of an irresponsible move tho.

Re: What do you make of this?

I just want to add...it's not so easy to get a mortgage these days with 1 person on it

once the bank gets wind that they are married- chances of being approved for another loan will drop

the lawyer that advised this should be dis-bared (spelling)

Re: What do you make of this?

b

Message edited 8/25/2010 10:50:43 PM.

Re: What do you make of this?

Re: What do you make of this?

I know someone doing this as well, and it really gets me in the gut. I almost take it personally!
I am trying to do the right thing and find a house I can decently afford, yet people like that are out there screwing the rest of us

Don't even get me started.......

Re: What do you make of this?

A friend of a friend is doing this. I was also appalled, AND even more appalled that I read her statuses on FB saying "just came back from the spa" "Just came back from shopping got my Coach on" "Just came back from a trip to Florida", meanwhile I KNOW she's not paying her mortgage!!! and i'm like you selfish witch (substitute other word).

I guess people don't care about credit anymore, you can always rent. And if your house is worth less then I guess you're like what's the point of knocking myself out. I dunno call me crazy but you HAVE to figure out how much you can pay maximum (in case one of you loose your job, medical crisis, etc) and don't mortgage more than you can chew so to speak. But people don't do that.

Re: What do you make of this?

I think it's dishonest and that is one of the MAJOR reason we had a huge mortgage crisis.

People defaulting on loans RUINS mortgage companies.

Let's say she was given a loan of $400K. She defaults on it.

The mortgage company cannot sell this house now for the $400K. Mutiply by all those people doing the same thing = huge mess we are in!!!!

So what... I don't feel like paying now.. and I can just default. Can you imagine if all homeowners were doing that. It would be a catastrophe.

She signed a contract to buy this house. To get out of it... she does have the option to sell it.

Re: What do you make of this?

at the risk of being flamed for being honest.....this whole mortgage bail out thing and people like this PISS me OFF!

Its one thing if they lose their jobs, have some medical hardship and cant pay....I get that, and it happens, always has.

Its the new, lets bailout everyone who bought a house they couldnt afford. Who signed up for an ARM, and then went the rate went up and they couldnt afford it, they defaulted. When everyone was so obsessed with McMansions and bought homes they couldnt afford.

What ever happened to personal accountability. YOU took out the mortgage....YOU are responsible for it. I honestly, dont care what your bank told you, its your mortgage, your home, your money and YOUR responsibility to work out all the numbers and make sure you can afford it. I dont care that mortgage companies gave people mortgages who shouldnt have had one in the first place......these people HAD to know they were financially unfit to buy a home.

I bought during the bubble and my home is now worth SIGNIFICANTLY less than what we paid for it. Oh well......at least we took personal responsibility when we were buying it in the first place and ONLY bought a home we could afford. We didnt over extend ourselves. Could we take the easy way out and default just for the hell of it.....so we can take advantage of the burst and upgrade....we could. However, we WONT.

We bought a home we could afford, we were eligible for a traditional (not subprime mortgage) and thats what we did. We are responsible and will continue to be.

It p#sses me off to no end, that we the responsible home owners have to shoulder the burden for those who didnt have a pot to pee in but bought a house anyway.

Our house is worth less that it was when we bought, like I said, but you know what.....thats the housing market. It happens, suck it up and be responsible.

Re: What do you make of this?

Re: What do you make of this?

Re: What do you make of this?

Posted by prncsslehcar

I think the fact that an attorney advised her to do this is even scarier than the fact that she's doing it.

Re: What do you make of this?