The new rent-free: No mortgage payments, no worries

Quote from Traveler:

At some point the lenders are going to catch up on the backlog and go after deficiency judgements against the best cases. They should approach it like the IRS and pick a few high-profile cases and throw the book at them. The poster boy for this would be someone with good credit and substantial assets outside of the real estate who voluntarily defaulted on the loan but could have made the payments anyway.

Or perhaps a cash-out refinancer since that invalidates the no-recourse in most states anyway.
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Most people still don't get it. They're using 1999 analysis to predict the future. The times have changed.

Fannie and Freddie are zombies. FNMA has a stock price of just under a dollar and an EPS of -$11.31!!!! If they were allowed to fail, and ultimately they will, what does that mean for the secondary mortgage market, for the value of your home? I can't say how this will play out, but I can say that the status quo is a temporary situation.

This problem will ultimately be addressed. I just don't know how. I can easily see the fed's balance sheet mushrooming yet again another 2X, or maybe even 10X. We are far from getting out of the woods.

We may actually see the day when people that voluntarily walked from their house will regret it - and not for the reasons you guys think.
 
Quote from Ivanovich:

And your credit rating is effectively wiped out for 7-10 years. Not to mention any tax liens or other such items that stay on - forever.
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If lots of people are not paying the banks then their savings are growing and probably they can spend, that's good for the economy in this recently mood elevated world, and really, the bailout money went to the banks and they did nothing with it so now lots of people are stiffing the banks, the money flowed from the taxpayer back to the taxpayer, that's as good as it gets for government services... and I defaulted on a lot of unsecured credit a scant four years ago and my credit rating is now above average because I don't owe anybody!! I don't know if it's different for secured debt...

If somebody is sure they are going to make it as a trader they are transitioning from a debtor [most likely] to a lender and they should destroy their credit, who needs credit if you are a lender? Think for yourself man!!

WIN = Work Is Nonprofit, invade the world of trading like Cortez, burn the ships in the harbor!! Trade well or die!!
 
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