Log In Sign Up

choosing foreclosure


Forum: Heated Debates

Notices

Welcome to the JustMommies Message Boards.

We pride ourselves on having the friendliest and most welcoming forums for moms and moms to be! Please take a moment and register for free so you can be a part of our growing community of mothers. If you have any problems registering please drop an email to boards@justmommies.com.

Our community is moderated by our moderation team so you won't see spam or offensive messages posted on our forums. Each of our message boards is hosted by JustMommies hosts, whose names are listed at the top each board. We hope you find our message boards friendly, helpful, and fun to be on!

Reply Post New Topic
  Subscribe To Heated Debates LinkBack Topic Tools Search this Topic Display Modes
  #1  
September 7th, 2011, 03:04 PM
Quantum_Leap's Avatar frequent flier
Join Date: Mar 2009
Location: Seattle area, Washington
Posts: 9,746
I know several families at the moment for whom this situation applies. I am wondering what you think of the path they are choosing:

1. They have not lost their jobs. They are having difficulty making their mortgage payments, perhaps because their expenses have risen but perhaps simply because they bit off more than they could chew when they took out their home loans originally.

2. Their homes are currently underwater -- they owe more on them than the houses are worth.

Their plan is to stop making payments on their mortgages and allow themselves to go into foreclosure. Apparently, it takes around 17 months on average for the foreclosure/eviction process to go through. During that time, they will be able to continue to live in their homes rent-free. As one individual said to me, "I'll be able to save $46,000 during that time" (his mortgage payment is around $3000 a month). Apparently, it's always been common for owners of commercial properties to do this when their properties went underwater, but because private homes rarely went underwater prior to this recent financial crisis, most homeowners didn't know about it. But the banks must have, and so (the argument goes) the banks should have known that this was one possible outcome when they originally chose to make loans to these families.

What do you think? Is it every morally justifiable to 'choose' foreclosure and continue to live in your home without making payments? (Assuming that external circumstances, such as your job/salary, have not changed?) Or is this tantamount to theft?
__________________

Thank you to the SSMC makers for my beautiful siggies!

(x2)(x2)(October 2011)
Reply With Quote
  #2  
September 7th, 2011, 03:56 PM
BittyBugsMama's Avatar Mega Super Mommy
Join Date: Apr 2011
Posts: 1,317
My salary has changed, it decrease by around $10,000 a year and my mortgage company refuses to modify our mortgage and lower the interest rate below 7%. Believe me, everyday I wanna just stop paying our mortgage, buy another house thats bigger and in better shape than ours for $30,000 and walk away from our house. Morally, I can't do it yet but for as screwed as we got by our mortgage company - I'm ready to shove our house down their throat.
__________________
~Alicia~
Reply With Quote
  #3  
September 7th, 2011, 04:43 PM
Poncho06's Avatar Mega Super Mommy
Join Date: Jun 2007
Posts: 3,040
If you are financially unable to pay your mortgage then that is what foreclosure is for.

IMO choosing to go into foreclosure because your home had lost value is kind of crappy and opportunistic. It's only going to add to the issues with the real estate market and frankly even when purchasing in an area that has historically increased in value there are no guarantees that your home will continue to go up or never loose value. Even low risk real estate investments carry a risk.
__________________




Reply With Quote
  #4  
September 7th, 2011, 05:09 PM
GinaB's Avatar Ex-Navy Lifetime NRA!
Join Date: Aug 2008
Location: America
Posts: 4,139
I think your bank trusted you and to just walk away because you home is underwater or some other reason is just crappy.
__________________



Reply With Quote
  #5  
September 7th, 2011, 05:36 PM
plan4fate's Avatar I may bend, but not break
Join Date: Mar 2008
Location: Wisconsin
Posts: 26,291
Send a message via MSN to plan4fate
After what DF went through with his home, I cannot condone this period. There are people out there who are paying their mortgages on time after having fallen behind at one point who are losing their homes due to stupid loopholes in banking law and then these idiots are jerking the system making it even harder to keep your home.



It only took DF 5-6 months from the time they got their notice, until they were locked out of their home. They spent that time trying to find out what was going on, and how they could fix it. Short of paying their mortgage in full, there was nothing anyone would do for them. They were current in payment, but a loophole (if two banks merge, they can call up any loan to be paid in full) turned them from people who'd fallen behind at one point and caught up to basically homeless.
__________________
~TTC #1 together 2 years and counting ~


Awesome siggy made by Jaidynsmum
Matthew&Mark 08/24/2005 9w1d, Mattie Anne 04/07/2008 8w Mel|&Dee 01/19/2010 (8 weeks) and 5 chemical pregnancies
Hope 07/22/2012@4w1d, Konnor 11/24/2012@3w6d,"Emmy"1/15/2013@ 3w6d, Ronen 02/10/2013@3w5d, Joy 07/19/2013@3w6d, "Pea" 09/06/2013@ 3w3d

Me: Hashimoto's Thyroiditis, PCOS, Insulin resistant
175mcg Synthyroid, 1500mg Metformin
Him: MFI low count, low morphology, low motillity
Seeing MFI specialist/RE in 2015
Attempting vitamins for remainder of 2014
Reply With Quote
  #6  
September 7th, 2011, 07:57 PM
HappyHippy's Avatar Platinum Supermommy
Join Date: Dec 2008
Location: Pavia, Italy
Posts: 5,959
Well people don't want to loan to you if you went into forclosure, so that is kind of stupid. My parents' neighbors went into forclosure (not by choice) and no one would give them another loan. So now they're renting to own a house and the only reason they got that is because it's a small town and they've known eachother for years. So they got lucky.

I understand that this is hard economic times. But this isn't going to be better for them in the long run. They should try to sell their house and get a cheaper one. Sucks, but forclosure isn't the answer if you can still pay your mortgage. Where I live it's very hard to get a bank to give you loan even with great credit. No one wants to do it because you can lose your job just like that and it happens all the time here.
__________________
Mama to G, L & twins F & M
Started off 2013 homebirthing suprise twins Fia Celesta & Maddalena Isabella
Reply With Quote
  #7  
September 8th, 2011, 11:28 AM
Platinum Supermommy
Join Date: Sep 2005
Posts: 8,989
As someone who fought to keep her crappy, tiny, underwater home last year because I was unemployed for 1 year & got slightly behind in my payments, I think this is so wrong! I could have walked & man it was tempting but I fought & fortunately my mortgage company re-financed me. And while I'm paying more for my house than it's worth, it's still my house & the right thing to do.
__________________
Kris

My 2 miracles: Lucinda & Noah
Reply With Quote
  #8  
September 10th, 2011, 07:37 AM
New Mama's Avatar Platinum Supermommy
Join Date: Feb 2008
Posts: 7,967
When DH lost his job and got a new on 18 months later out of state, we did everything we could to NOT let our house foreclose. We had to pay rent in our new town and make mortgage payments all on one salary (since I had to quit MY job so DH could start his). It was tough and the bank didn't want to help AT ALL.

We finally decided after paying our mortgage over a year we'd have to foreclose, we just couldn't keep making the payments. We didn't make one payment and the house sold (so we went back and paid it a month late). That ONE month of paying late hurt our credit and one bank told us it would make it difficult to be approved for a home loan in the future (Although several others told us it would not). I can't IMAGINE walking away in good circumstances...how you would EVER be approved for another home loan?

I think it's a crappy thing to do and morally wrong if you don't have a good reason to walk away.
Reply With Quote
  #9  
September 10th, 2011, 08:18 AM
Fluffy Baby's Avatar Platinum Supermommy
Join Date: Feb 2007
Location: SW FL
Posts: 8,785
I think it is morally wrong for people to do only because they are underwater in their homes.

Everything that is going on in our country, I am starting to think I like renting... lol
__________________
Leann <3 Hector
My trio: Alyssa 7, Tristan 4.75, Gavin 1.5

I am a mixture of all that and a bag of chips... IJS



Rest In Peace Jennifer <3



Reply With Quote
  #10  
September 10th, 2011, 08:19 AM
Quantum_Leap's Avatar frequent flier
Join Date: Mar 2009
Location: Seattle area, Washington
Posts: 9,746
Quote:
Originally Posted by MommaBee View Post
Well people don't want to loan to you if you went into forclosure, so that is kind of stupid. My parents' neighbors went into forclosure (not by choice) and no one would give them another loan. So now they're renting to own a house and the only reason they got that is because it's a small town and they've known eachother for years. So they got lucky.

I understand that this is hard economic times. But this isn't going to be better for them in the long run. They should try to sell their house and get a cheaper one. Sucks, but forclosure isn't the answer if you can still pay your mortgage. Where I live it's very hard to get a bank to give you loan even with great credit. No one wants to do it because you can lose your job just like that and it happens all the time here.
They're planning to move back in with their parents. They ARE having trouble paying their mortgage, but not because either of them lost their jobs, just because they have bad spending habits and a bunch of credit card debt. And I'm pretty sure that if they tried to put their houses on the market, they would sit there for months and months if not years.
__________________

Thank you to the SSMC makers for my beautiful siggies!

(x2)(x2)(October 2011)
Reply With Quote
  #11  
September 10th, 2011, 08:33 AM
BittyBugsMama's Avatar Mega Super Mommy
Join Date: Apr 2011
Posts: 1,317
Our two options are pay the mortgage or walk away from the house, we can't sell our house.
__________________
~Alicia~
Reply With Quote
  #12  
September 11th, 2011, 07:40 AM
mayandsofiasmommy's Avatar Platinum Supermommy
Join Date: Aug 2007
Location: CA
Posts: 12,545
First, NO mortgage companies will even talk to you about modification until you have missed quite a few payments. So in order to even go that route, you have to take a chance. Second, most of the time, mortgage companies really DON'T want to work w/ you. They generally have crazy things that will qualify you for help. Most people fall into the category of the banks NOT helping. I do not feel sorry for banks at ALL. They have been preying on people for years. They do not pay taxes. I'm done with feeling sorry for ANY corporation. People do what they need to do in order to survive and so what is BEST for their family.
__________________

Reply With Quote
Reply

Topic Tools Search this Topic
Search this Topic:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -7. The time now is 05:02 AM.



Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0