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CrankyPants
I'm cranky
Member since 7/06 18178 total posts
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Mama Cranky
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
.I researched and found that economists are predicting that millions will be turning in keys (actually acting) and surprisingly its not only those in financial harship but those who have negative equity/upside down who can afford payments with good credit.
Where did you come across this information? I have not seen anything suggesting this and would be interested in reading about it.
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Posted 1/7/09 3:51 PM  |
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Kara
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They call me "Tater Salad"
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
.I researched and found that economists are predicting that millions will be turning in keys (actually acting) and surprisingly its not only those in financial harship but those who have negative equity/upside down who can afford payments with good credit.
Cite?
Just b/c people will do it doesn't make it right. BTW, this will cripple the economy if this happens. So all those selfish, stupid people will a HUGE part of the PROBLEM.
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| Posted 1/7/09 3:54 PM |
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mommy2Alex
3 babies for me :)
Member since 5/05 6683 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by lululu
Wow! I can't even believe that you can empathize with someone walking away just because they made a bad investment decision. I can COMPLETELY understand being upset that you lost money on your investment, but to think that others should have to foot the bill for that - COMPLETELY ridiculous!!!! When someone just walks away from a mortgage and house OTHERS FOOT THE BILL.
We lost a lot of money in the stock market this year! Should other people have to pay for it? Honestly the whole mentality in this country is starting to make me sick! Take some responsibility for the decisions that you make!!!! When did people start thinking it's okay to just walk away from every bad decision that you made!
My house has lost plenty of value. So what? I made the decision, I'll live with it. If that means someone can now move into my neighborhood at half the price, well then lucky them.
 Well said.
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| Posted 1/7/09 3:58 PM |
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sunnyplus3
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Re: What would you do if your home value fell to the extreme?
Posted by Kara
So all those selfish, stupid people will a HUGE part of the PROBLEM.
Rut-Roh....you just called people stupid & selfish, you are going to be on the immature list with me now 
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| Posted 1/7/09 4:18 PM |
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Kara
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They call me "Tater Salad"
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Re: What would you do if your home value fell to the extreme?
Posted by KellyFG
Posted by Kara
So all those selfish, stupid people will a HUGE part of the PROBLEM.
Rut-Roh....you just called people stupid & selfish, you are going to be on the immature list with me now
At the top of MY immature list are all the people who think walking away from a debt they CAN afford is an acceptable thing to do.
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| Posted 1/7/09 4:32 PM |
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sometimesmommy
Always in my heart.....
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Re: What would you do if your home value fell to the extreme?
Posted by Kara
Posted by KellyFG
Posted by Kara
So all those selfish, stupid people will a HUGE part of the PROBLEM.
Rut-Roh....you just called people stupid & selfish, you are going to be on the immature list with me now
At the top of MY immature list are all the people who think walking away from a debt they CAN afford is an acceptable thing to do.
I agree with you--it is Stupid and Selfish..told them that already. But they are probably not going to--hopefully.
Unfortunately they are not the only ones who had the thought and there is more people who will be acting--outside of LIF there are so many people discussing what they plan to do and not everyone wants to stick it out.
It comes down to vested interest--from what I have been reading on the economic websites--the lenders are getting a new group--the people who had the good credit who are getting the notices and appraisals that show them "underwater" or having negative equity. Combine that with sites who are showing that even with a 200 hit on your credit score that you cna recover in 5 years where the market will be at a fiar price--its a recipe for disaster.
I may not be a real estate expert but I am versed in economics and the economists are starting to talk about this group who dont have vested interest in properties since they did no doc/investment properties with stellar credit but are thinking about their wallets.
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| Posted 1/7/09 5:10 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
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That Led To The Wrong Tendencies
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
Combine that with sites who are showing that even with a 200 hit on your credit score that you cna recover in 5 years where the market will be at a fiar price--its a recipe for disaster.
Foreclosures stay on your credit report for a minimum of 7 years from the date the foreclosure is filed.
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| Posted 1/7/09 6:25 PM |
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CookiePuss
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
Posted by Kara
Posted by KellyFG
Posted by Kara
So all those selfish, stupid people will a HUGE part of the PROBLEM.
Rut-Roh....you just called people stupid & selfish, you are going to be on the immature list with me now
At the top of MY immature list are all the people who think walking away from a debt they CAN afford is an acceptable thing to do.
I agree with you--it is Stupid and Selfish..told them that already. But they are probably not going to--hopefully.
Unfortunately they are not the only ones who had the thought and there is more people who will be acting--outside of LIF there are so many people discussing what they plan to do and not everyone wants to stick it out.
It comes down to vested interest--from what I have been reading on the economic websites--the lenders are getting a new group--the people who had the good credit who are getting the notices and appraisals that show them "underwater" or having negative equity. Combine that with sites who are showing that even with a 200 hit on your credit score that you cna recover in 5 years where the market will be at a fiar price--its a recipe for disaster.
I may not be a real estate expert but I am versed in economics and the economists are starting to talk about this group who dont have vested interest in properties since they did no doc/investment properties with stellar credit but are thinking about their wallets.
This is Stockton, CA. It's happening already.
It's silly to think that that the banks, lenders, and govt are going to sit by and just let this happen. Wait til they see the negative equity come up as earned income with the huge tax bill to go with it. Legislation hasn't passed yet to protect "that group." And, out of all gov't agencies...The IRS and USPS are the one that are the hardest.
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| Posted 1/7/09 6:53 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by ave1024
Posted by sometimesmommy
Combine that with sites who are showing that even with a 200 hit on your credit score that you cna recover in 5 years where the market will be at a fiar price--its a recipe for disaster.
Foreclosures stay on your credit report for a minimum of 7 years from the date the foreclosure is filed.
No disagreement from me BUT if you resestablish credit you can improve your qualification for a conforming loan in less time--which is why lenders better start paying attention to the walkers..those who dont have vested interest like families like most...So yes there are penalties but since economist beleive this mess will take years to fix many are taking their chances--and therein lies the problem
Fannie Mae guidelines for loans after August 1, 2008
Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
Buying After a Deed-in-Lieu of Foreclosure With Extenuating Circumstances
The waiting period is 2 years up to 7 years.
Buying After a Short Sale
The waiting period is 2 years
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| Posted 1/7/09 6:59 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What would you do if your home value fell to the extreme?
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This is Stockton, CA. It's happening already.
It's silly to think that that the banks, lenders, and govt are going to sit by and just let this happen. Wait til they see the negative equity come up as earned income with the huge tax bill to go with it. Legislation hasn't passed yet to protect "that group." And, out of all gov't agencies...The IRS and USPS are the one that are the hardest.
This is my thought too and I do think it will be sorted out eventually but it seems the voluntary foreclosures are being lumped in with the "valid" foreclosures and I do believe due to how widespread this phenom is..you will soon find that the IRS will take settlements... Its a big mess...So for those who hae to pay it still outweighs having to pay a lender the equity loss plus the interest that would have acrued over the life of the loan....at least thats what I am reading/hearing from different sources.
Message edited 1/7/2009 7:17:57 PM.
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| Posted 1/7/09 7:14 PM |
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