Will walking away turn into an epidemic?

[cgtrader]

Could this be the start of the whole credit system being crushed by the consumers that hold credit?

Will all credit be broken, nobody pays back, what are the lenders going to do about it?

Fannie warns homeowners who walk away

http://www.sfgate.com/cgi-bin/article/comments/view?f=/c/a/2008/04/13/RE34101D2M.DTL

 

[stock777]

Walking away is a joke, and should not be allowed.

Why is there no $$$$ penalty associated with this?

In some neighborhoods, you get kneecapped for reneging on a deal.

I'd like to see some of that.

As for the web sites encouraging this..... disappear the bastards.

=======================
Bring Back Public Hangings/

 

[cgtrader]

I hope homeowners give all these greed-ridden companies a big F U and walk away, collapse the market down to pre-bubble prices, then buy back.

These companies will be so desperate for sales they will have to sell to those that previously walked away.

 

[TraderZones]

I said before, I will say again. You CANNOT "walk away" from a mortgatge. That is a myth.

The mortgagor will get a deficiency judgement from the judge. You will wind up owing the balance plus interest plus costs plus lawyer fees. And your credit will be banged. They will get their money plus a lot more from you UNLESS you declare bankruptcy.

These people live in a dream world. They should read the fine print of the contract. There are no outs; they have covered every angle.

 

[ElCubano]

Quote from TraderZones:

I said before, I will say again. You CANNOT "walk away" from a mortgatge. That is a myth.

The mortgagor will get a deficiency judgement from the judge. You will wind up owing the balance plus interest plus costs plus lawyer fees. And your credit will be banged. They will get their money plus a lot more from you UNLESS you declare bankruptcy.

These people live in a dream world. They should read the fine print of the contract. There are no outs; they have covered every angle.

not if it is a mass exodus......the banks will have to continue taking hits...and when you are paying a 300k mortgage on a house that is now worth 150K ..you better believe people will be walking

 

[gnome]

Quote from TraderZones:

I said before, I will say again. You CANNOT "walk away" from a mortgatge. That is a myth.

There is a high level of misunderstanding on ET about the ease/difficulty of "walking away" from a mortgage.

In most states, a personal residence mortgage is a full recourse loan.... (I keep hearing about how in California it is not, but I still find it hard to believe.)

 

[5Pillars]

Quote from cgtrader:

I hope homeowners give all these greed-ridden companies a big F U and walk away, collapse the market down to pre-bubble prices, then buy back.

These companies will be so desperate for sales they will have to sell to those that previously walked away.

x 2 - Let the bodies hit the floor!

 

[gnome]

Quote from ElCubano:

not if it is a mass exodus......the banks will have to continue taking hits...and when you are paying a 300k mortgage on a house that is now worth 150K ..you better believe people will be walking

And most of them will be receiving a bill from the IRS for "taxes due on the $150K of forgiven debt".

 

[5Pillars]

Quote from gnome:

And most of them will be receiving a bill from the IRS for "taxes due on the $150K of forgiven debt".

The bailed homeowners can take that IRS letter and FORWARD it to the FED - they can bail it out with new printed money!!!

New Motto - "Good enough for BSC, good enough for me!!!" :eek:

 

[ElCubano]

Quote from gnome:

And most of them will be receiving a bill from the IRS for "taxes due on the $150K of forgiven debt".

yes that is correct...but we are talking about walking away from the loan....and honestly if enough people do it...the IRS might not be able to do shit...you cant squeeze blood out of a stone...the internet is slowly changing politics...the people are starting to have a bigger voice...