Mortgage/financial question

[bdcp]

I don't get the default mentality. Defaulting used to be reserved only for the most dire circumstances when someone flat out couldn't make their mortgage payment (or feed their family). It was and never has been meant because people don't "like" the fact they owe more than their house is worth. It's called responsibility.

This is hardly the first time markets have been upside down, this is just a wider and deeper effect. We sold one home after 7 years ('88-95) and had to come to the table with 6K because the market had dipped. IT HAPPENS.

No one ever guaranteed a home would make money. A HOME is where LIVE. Never go in looking at it as an investment.

Who do all of you think pays for all these foreclosures? WE ALL DO!!!

OP needs to stay in the house, pay some towards the mortgage, some towards retirement and savings. PAY DOWN THE LOAN. Which is what she would have done had she had a traditional mortgage.

I think some on these boards need to remember they are in the minority in the world.

First, only 50% of people actually pay any income taxes. And less than 50% have 401K or ANY retirement savings.

OP is in a GOOD place. Lower payments so take advantage and pay down the loan.

Let's be responsible adults and quit blaming the mortgage industry for this situation. The reality is, the mortgage companies were forced by law into making most of these loans, but regardless, the person who has to pay the bills needs to know what they can and can't afford. The only "victims" are those that allow themselves to be.

 

[seashoreCM]

Bankruptcy is a tool to use when you fall upon hard times -- unemployment, weather disaster, divorce and/or spouse absconded with funds, health problems, usury including by deception on the part of lenders.

Whether or not it is immoral to sign a contract and then renege on it, I say that it is not immoral to declare bankruptcy during hard times when one's anticipated method of fulfilling obligations falls apart.

By the way, banks were not forced by law to make subprime loans. Banks had every right to properly qualify the borrowers. Also, many of these loans failed because they were usurious.

For the person trying to decide whether to put money into retirement savings or paying down the loan, if the tax bracket is so low that there is no tax saving putting the money into an IRA then all of it should go to the loan.