Would you walk away from a $300k home if you owed $400k on it?

[tiznow]

Naw. I just saw some piece on the news about how people were trashing their home becuase of foreclosure, and one bank said they had a program that cuts people a check if they don't smash the place up. I wish I had a vid of it.

Pigs found trapped in vacant, foreclosed Oregon home


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YouNewsTV™

Story Published: May 27, 2007 at 12:53 PM PDT
Story Updated: May 27, 2007 at 12:53 PM PDT

By KATU Staff


Watch the story
EAGLE CREEK, Ore. - A home here has been turned into a pig sty.
Three pigs have been ransacking a four bedroom home on Southeast Wildcat Mountain Drive that was repossessed in January.

Neighbors said the former owner was extremely upset that he had been forced out. Detectives believe he tried to get even by trapping three very large pigs inside the home.

"Now, we have damage to the house - extensive damage to the home - as well as there were three 200-pound pigs that were apparently trapped inside, or they were placed inside and concealed in this residence, for a week," said Detective Jim Strovink, a spokesman for the Clackamas County Sheriff's Office.

By the time deputies intervened, the pigs had nearly destroyed the home. Because the pigs went without food or water for almost a week, the owner could be charged with animal abuse.

As for who will pay for the damage to the home, it all depends on what phase the foreclosure is in and whether the house now belongs to the bank.

 

[DENIRO]

if the monthly rent and monthly mortgage is about the same for similar size sq. footage home...why move?

theres always jewish lighting:lol:

 

[quantumleap]

I would. In a heartbeat. Just wondering what y'all think. The media is trying to sell the idea that people should try to stay in their homes, even if they owe a lot more than what it's worth. I say BS. It just shows they are in cahoots with the gov't and the big bankers.

The only advantage would be to protect your credit rating but that's not of much use nowadays anyway as banks aren't lending to ppl with good credit either. Give me $100k for my credit rating? Sure, I'll take it!

Consider the alternative, what would happen if you don't walk away? Chances are you would default on the loan.

The banker who gave you the loan knows this. Try to work it out with the bank so that you are able to make payments until the price of the house goes up.

 

[tiznow]

if the monthly rent and monthly mortgage is about the same for similar size sq. footage home...why move?

theres always jewish lighting:lol:

most of these mortgages were frontloaded and reset recently so mortgage payments have gone way up and at the same time they are left holding a house that is worth 30% lower than the purchase price

plus alot of these people almost put nothing down to begin with guys like willie that have been there since the 90s already put alot of money into their home and don't have weird mortgages where payment reset and shoot the moon vs. the cheap ones early on.....makes much less sense to walk away

you can find some shithole for much less relative to your mortgage payment in many areas and wait things out as housing continues to crash....and you instantly gain like 100k or whatever since you are walking away from a deflating home....you don't have to pay upkeep costs....you don't have to mow the lawn....you don't have to pay property taxes....etc....

 

[HuskerFan1]

tiz is right...it is a moral issue and id walk away with the biggest fu-king smile on my face its not funny....it wasnt MORALLY right for all those cockfu-k loanlenders to approve half the goddamn loans with ARM's to people they KNEW wouldnt be able to make the payments once they started to adjust...

from what ive learned following wallst over the years, the little guy rarely wins vs those greedy fu-ks....i wouldnt let the door hit me on the way out....

 

[gtc08]

forget morals. your out to look out for yourself and your family. if you cant afford it, you do what you have to do, you dont just drown in quick sand because it's the moral thing to do.

 

[tiznow]

the only problem is in this situation with the bill that will eventually pass

us taxpayers as a whole will be left holding some of the bag

plus it won't just be mortgages...it'll likely be student loans....credit card debt etc...

socialism ain't it great....privatize the profits when the going is good....and socialize the loses when the going is bad.....

we'll make a profit....to which i laugh very loudly...i'll believe it when i see it...taxpayer will lose 100s of billions and maybe as much as a trillion almost guaranteed

 

[DarrylParsons]

I would not. I don't believe in screwing people.

You sign your name to a contract, if have a legal and moral obligation
to fulfill your part of the contract.

That's my philosophy too when dealing with individuals and smaller businesses.

But big business is equivalent to government these days and those guys use every trick in the book against me, so I'd be a sucker not to use everything at my disposal against them.

If you believe ALL contracts entail such obligations, how about the part in the constitution that says the UN charter is the highest law of the land on international issues? Think of all the resolutions against Israel for example. Or just the war in Iraq which was never declared.

If it's not ALL contracts, where is the objective source that tells me which ones should be respected and which ones shouldn't?

 

[DarrylParsons]

if the monthly rent and monthly mortgage is about the same for similar size sq. footage home...why move?

theres always jewish lighting:lol:

The rent for a $300k house would almost certainly be less than a $400k mortgage. Then there's property taxes, insurance, painting, renovations, depreciation on appliances and fixtures etc. that you don't pay when you rent.

You also get the added bonus of being more mobile, being able to move to a new place as your needs change, and not having something the gov't can blackmail you with in case you build up equity someday.

 

[punter]

Even if they want it back bad you can stay around 90 days without paying.

If its in an area with a lot of repos you could get away a little longer.

 

[Legend-I-Aint]

forget morals. your out to look out for yourself and your family. if you cant afford it, you do what you have to do, you dont just drown in quick sand because it's the moral thing to do.

How about being smart enough to realize when you are working at McDonalds you can't afford the $400K house despite what some mortgage company may tell you.

Your logic is always really fucked up. Have you left yet?

 

[DarrylParsons]

Consider the alternative, what would happen if you don't walk away? Chances are you would default on the loan.

The banker who gave you the loan knows this. Try to work it out with the bank so that you are able to make payments until the price of the house goes up.

I suppose you could just stop making payments and live there for a few months for free until you're kicked out. I was thinking more about the long-term decision, not the short-term logistics.

Any way you slice it, paying $400k for a $300k house is a not very smart IMO.

 

[C-Gold]

Naw. I just saw some piece on the news about how people were trashing their home becuase of foreclosure, and one bank said they had a program that cuts people a check if they don't smash the place up. I wish I had a vid of it.

People were doing a lot worse than that. People pour cement down pipes, break everything, trash everything etc.

I read it all in the books I read before/during the housing bubble when I decided NOT to buy.

So the answer... I wouldn't buy inflated property to begin with.

 

[gtc08]

How about being smart enough to realize when you are working at McDonalds you can't afford the $400K house despite what some mortgage company may tell you.

Your logic is always really fucked up. Have you left yet?

that has nothing to do with the scenario presented. i owe more then its worth and i cant afford to stay in it. i walk away and stay in the game instead of sink in quicksand because its the "right thing to do". the right thing to do is look out for your and people around you well being.

 

[TomorrowsNewspaper]

I guess they forced the people to sign the loan applications. Damn banks. Probably held a gun to their heads too.

What if the opposite were true. What if your $300K home is now worth $400K? Are you going to give the extra money back to the bank since you screwed them?

 

[3peet]

I would. In a heartbeat. Just wondering what y'all think. The media is trying to sell the idea that people should try to stay in their homes, even if they owe a lot more than what it's worth. I say BS. It just shows they are in cahoots with the gov't and the big bankers.

The only advantage would be to protect your credit rating but that's not of much use nowadays anyway as banks aren't lending to ppl with good credit either. Give me $100k for my credit rating? Sure, I'll take it!

only way i'd walk away is from a sell. No way in hell would i ever jeapordize my credit. It took me years to get the excellent rating I have now. I sure as hell don't wanna go through all those years climbing up that mountain again.

It takes on month to drop your score 3-4 months to ruin it. It takes a few years to get it all back.

Take it from someone who's been in this business along time. CREDIT IS PRECIOUS. It's amazing how many people care less about it now days. THey're not helping theselves by any means. If you can afford it, stay and ride it out. now if you cant afford it and fall on financial hardship..thats a different story.

 

[mamatried]

The ironic thing about all of this is that unwarranted "excessive exuberance" in the housing market is what caused this crash, but by the time the thing bottoms out (and the latest version of the bailout package is going to forestall that and make the nadir much, much worse) the dollar won't be worth the paper it's written on, and real estate will be one of the few commodities, along with precious metals, worth something.