? / vent about people walking from homes

[pandora174]

Recently I have had 2 friends just decide that they couldn't afford their multiple mortgages any more. One through her DH job loss (I do feel for her a little) though she's taking a 5 day trip to Italy & her DH has found a job but not at the same pay & is letting her 2 rental properties go. The other used her mother's name & let 2 homes go just b/c the loans were adjustable (no job losses) & she could no longer afford the mortgage + the multiple equity lines they took out to maintain a lavish lifestyle. I don't mean to sound mean spirited but they are so "oh well" about it. & these are 2 people who always were why are you renting when buying is so easy ? I always told them I am leary of those adjustable loans & don't want a huge mortgage etc, regardless it's none of their business. But the first case it affected her credit but isn't worried. The 2nd couldn't care less b/c she now has excellent credit, bought a foreclosed home under her name & "only" runied her mom's credit but it doesn't matter b/c mom lives out of the country. I feel like the twilight zone here. Are there no repercussions. Doesn't the mortgage co sue you ?? I know both were foreclosed on & haven't even responded so I'm sure the houses are up for auction. They just feel like there are so many foreclosures nothing will happen to them. This makes me mad that people can be so clueless. I am no saint or on a soap box. I've made some financial mistakes but never like this. I know some people have no choice, food on the table or walk away but this is not the case in either. These are people who bought multiple properties to flip & now just "oh well" It does bother me b/c as a renter I had to move 2 times because of people like them that let their rental properties go & only milked it for the equity lines. I am lucky I got my security deposit & now rent from a builder instead but it does affect everyone & this is one of the reasons our economy is crappy. OK off my soapbox, just needed to vent a little. I swear I just don't understand people sometimes

 

[ols386]

Recently I have had 2 friends just decide that they couldn't afford their multiple mortgages any more. One through her DH job loss (I do feel for her a little) though she's taking a 5 day trip to Italy & her DH has found a job but not at the same pay & is letting her 2 rental properties go. The other used her mother's name & let 2 homes go just b/c the loans were adjustable (no job losses) & she could no longer afford the mortgage + the multiple equity lines they took out to maintain a lavish lifestyle. I don't mean to sound mean spirited but they are so "oh well" about it. & these are 2 people who always were why are you renting when buying is so easy ? I always told them I am leary of those adjustable loans & don't want a huge mortgage etc, regardless it's none of their business. But the first case it affected her credit but isn't worried. The 2nd couldn't care less b/c she now has excellent credit, bought a foreclosed home under her name & "only" runied her mom's credit but it doesn't matter b/c mom lives out of the country. I feel like the twilight zone here. Are there no repercussions. Doesn't the mortgage co sue you ?? I know both were foreclosed on & haven't even responded so I'm sure the houses are up for auction. They just feel like there are so many foreclosures nothing will happen to them. This makes me mad that people can be so clueless. I am no saint or on a soap box. I've made some financial mistakes but never like this. I know some people have no choice, food on the table or walk away but this is not the case in either. These are people who bought multiple properties to flip & now just "oh well" It does bother me b/c as a renter I had to move 2 times because of people like them that let their rental properties go & only milked it for the equity lines. I am lucky I got my security deposit & now rent from a builder instead but it does affect everyone & this is one of the reasons our economy is crappy. OK off my soapbox, just needed to vent a little. I swear I just don't understand people sometimes

That would annoy me also. These individuals that you just described sound very irresponsible. I think some people just don't take things very seriously, and should.

I also know a family that just walked away from their home, still owing a ton of money on it. Her boss bought and fixed-up a rental house, and then the family moved into the rental. This family said they didn't care about it screwing-up their credit, because it was already screwed-up. I don't understand this thought process. For me, I'd be thinking, "ok, my credit is bad, what can I do to try and make it better?"

Yep, I guess we're in the twilight zone.

 

[wvjules]

Wow you know an awful lot of intimate financial details of these people.

 

[Carly_Roach]

My question is: Why do you care? It's their lives and their credit. Why should it bother you?

 

[OctMtnWoods]

Wow you know an awful lot of intimate financial details of these people.

You would be amazed at the info some people share about themselves.

Back in the mid 90's, our neighbor walked away from their house after the bank wouldn't work with them, and they couldn't sell for enough to pay off mortgage. While preparing for days to pack up their motorhome & drive off, they told us all their plans, where they would go, sold us some stuff, and left us a key for emergencies since we share a wall. However, when the bank came around, we were supposed to play dumb.

 

[JR6ooo4]

My question is: Why do you care? It's their lives and their credit. Why should it bother you?

because it affects the economy, drastically. Maybe you have not noticed... things are not too great right now.

Mikeeee

 

[ols386]

because it affects the economy, drastically. Maybe you have not noticed... things are not too great right now.

Mikeeee

Yup.

 

[OctMtnWoods]

My question is: Why do you care? It's their lives and their credit. Why should it bother you?

Because no one wants empty abandoned houses in their neighborhood. It can attract crime and lower property values for those already having a hard time selling their house.

 

[hentob]

My question is: Why do you care? It's their lives and their credit. Why should it bother you?

You're joking, right

 

[mamacatnv]

My question is: Why do you care? It's their lives and their credit. Why should it bother you?

Because ultimately it affects us all. It is estimated where I live that 48% of all homeowners are upside down. If they all walked away what would that do to the local infrastructure?

I have a friend who bought at the top of the bubble and now the house is worth half what they owe. Right now they are about 200K upside down.
No job loss, they know that the market is not going to recover in the time frame they planned or if it ever will recover.
They figure they can stop paying the house payment for several months and ride it out until they are foreclosed on. They plan to take the mortgage money and pay off all their debt, take the credit hit and recoop and rebuy in a couple of years.
The thinking is this is far better than spending the next 30 years paying for a house that will never be worth what they paid.

I am torn over this, I see their point and yet they committed to the purchase but the price is awfully big to pay and I totally understand why they would consider walking away. I may not necessarily agree but if I were in their shoes I might be thinking the same thing they are.

 

[Tomader]

The biggest problem is people are losing their jobs. It's not a matter of wanting to give up a home. It's a problem if you don't have an income or a much lower one. This country is in BAD shape! I feel horrible for the Chrysler Dealership owners who are losing their buisness. Add up all the people that work for them and it's alot. How are they going to find jobs? This will add to the unemployment numbers greatly. Now let us factor in GM. You will see a whole lot more empty homes. Maybe a couple of years ago I would be angry about the housing situation but not anymore. People are begging for jobs so they can keep their homes. Sometimes you just don't have a choice. NO job=no money=no home. That is the new reality.

 

[JPN4265]

Recently I have had 2 friends just decide that they couldn't afford their multiple mortgages any more. One through her DH job loss (I do feel for her a little) though she's taking a 5 day trip to Italy & her DH has found a job but not at the same pay & is letting her 2 rental properties go. The other used her mother's name & let 2 homes go just b/c the loans were adjustable (no job losses) & she could no longer afford the mortgage + the multiple equity lines they took out to maintain a lavish lifestyle. I don't mean to sound mean spirited but they are so "oh well" about it. & these are 2 people who always were why are you renting when buying is so easy ? I always told them I am leary of those adjustable loans & don't want a huge mortgage etc, regardless it's none of their business. But the first case it affected her credit but isn't worried. The 2nd couldn't care less b/c she now has excellent credit, bought a foreclosed home under her name & "only" runied her mom's credit but it doesn't matter b/c mom lives out of the country. I feel like the twilight zone here. Are there no repercussions. Doesn't the mortgage co sue you ?? I know both were foreclosed on & haven't even responded so I'm sure the houses are up for auction. They just feel like there are so many foreclosures nothing will happen to them. This makes me mad that people can be so clueless. I am no saint or on a soap box. I've made some financial mistakes but never like this. I know some people have no choice, food on the table or walk away but this is not the case in either. These are people who bought multiple properties to flip & now just "oh well" It does bother me b/c as a renter I had to move 2 times because of people like them that let their rental properties go & only milked it for the equity lines. I am lucky I got my security deposit & now rent from a builder instead but it does affect everyone & this is one of the reasons our economy is crappy. OK off my soapbox, just needed to vent a little. I swear I just don't understand people sometimes

Could this be why we are in this fix to begin with? People getting home loans that never should have in the first place?

 

[MushyMushy]

Well, I sure wouldn't judge. You probably don't know all the intimate details of their finances. Their "oh well" attitude may very well be a front to cover the real fear they are feeling.

People are getting laid off left and right, getting pay cuts, getting their interest rates jacked way up on credit cards, etc. I've been completely flabbergasted to find out that 3 people I know have recently filed bankruptcy -- 3 who have admitted it, so how many more aren't admitting it? These are hardworking people who just couldn't keep it together because of any or all of the above.

That said, yes, I know there are abuses. And we're in a lot of trouble as a country. But I won't assume that about anybody and I won't point fingers.

 

[Nie0214]

You also have to think about the people/families renting from these people that are letting their houses go. Those people are paying rent every month expecting the landlord to be paying the mortgage so they have a home. They'll be forced out and their money is just going to a trip to Italy. Really nice.

 

[MushyMushy]

Could this be why we are in this fix to begin with? People getting home loans that never should have in the first place?

And banks giving loans that shouldn't be given?

Whatever happened to good old-fashioned mortgages where a bank sat down with the client and went through every bit of their finances with a fine-toothed comb, and this process didn't take overnight?

 

[redrosesix]

I have very little sympathy for people who are irresponsible borrowers -- sorry, even if you're upside down.

My brother bought a house here and while doing some required major structural work that didn't show up in the inspection, they found oil in the ground. Over $100,000 later they are still living there -- yes, they will end up paying more than the house is worth (about 50 percent more) and yes, they still have a home to live in. To offset the costs somewhat, they built an apartment which now pays half the new (and huge) mortgage.

There are ways to get through calamities like this (remember when everybody used to have boarders to help pay the mortgage?). I think the OP has a right to be ticked -- and we can all learn from other's mistakes.

 

[ols386]

There are also situations where the banks have given loans to people they knew couldn't afford the montly payments, and the individuals being given the loans, knew they couldn't afford the monthly payments. Which makes no sense to me at all.

 

[ryanshana]

You also have to think about the people/families renting from these people that are letting their houses go. Those people are paying rent every month expecting the landlord to be paying the mortgage so they have a home. They'll be forced out and their money is just going to a trip to Italy. Really nice.

This is exactly what is happening to my best friend. She is the tenant and the landlord is just letting it go....pretty much leaving my friend in trouble to find a place, get money together and move YET AGAIN. This crap makes me soooo mad!

 

[pandora174]

This is exactly what is happening to my best friend. She is the tenant and the landlord is just letting it go....pretty much leaving my friend in trouble to find a place, get money together and move YET AGAIN. This crap makes me soooo mad!

Exactly why it irks me ! This happened to me 2x within 2 years b/c of irresponsible people. & to those asking why I care, because it affects us all ! The people in those neighborhoods with foreclosed homes next door & their values dropping, the renters out of a home etc. These are not people who lost jobs & have no options. They bought multiple homes, took large equity lines & then walked away. Why do I know so much some one asked ? Because they tell everyone within ear shot every detail like it's something to be proud of ? then they brag about their trips to Italy, live in nanny & all the cool stuff they bought from the equity lines that they don't have to pay for. These are not the people who lose both jobs & can't pay their mortgage & have no solution but to walk away. I don't get it. I just don't get this mind set

 

[Disney Doll]

My question is: Why do you care? It's their lives and their credit. Why should it bother you?

because ultimately people like this affect the financial picture of this country, which, in turn as you may have noticed, affects us all.