Stop paying morgage?

[SilverStone05]

Sahtt says what I say on this forum all the time but with so much more poise and eloquence. Kudos, consider running for office.

Agreed.

I'm still trying to learn how to write with tact.

I can speak tactfully.....but can't seem to get it right on paper.

 

[Big_D]

There is another word for this: Stealing.

Why cant people freaking live up to their obligations?

This whole thing is f###ng ridiculous.

It would be like me buying a stock, and if it goes down, renegotiate with the exchange to get my money back.

P.S. There were many people who made the bet, and made a ton of money, either by flipping the house, or just simply doing a cash out refi. Now, the shit hits the fan, and people walk. They take the risk for the upside, but dont want to face the downside. To all that do this, F### YOU.

Wow, Is it really necessary to use such language to get your point across?
I understand and agree with your sentiment but I really think you should reconsider your post.

Anyway, I agree that one should always live up to their obligations unless they simply cannot afford to and then they should suffer the consequences.

 

[VampNSXX]

Ok....sorry to go off topic but you did post a pretty controversal topic on a public forum. And to answer your question, your credit will be screwed for atleast 7 years. Most credit card companies will cancel your cards and I can't fathom living only on cash/debit cards - that alone would stop me from screwing my credit. (Years back I worked as a Collection Agent, so I am very versed on how this all works) Even if you do get credit in the next few years, the terms are alway going to suck. High interest rates, large down payments on any loans, low credit limits on credit cards. Also, many employers check credit reports, so it can even stretch into your career. Hopefully that was the "answer" you were looking for?

that is what I wanted to know. For me I dont use credit cards ever the way I see it and it has worked for me is if I dont have the money then i cant afford it. The only loan I have now is my house loan. All my cars are payed for and they were payed for with my hard earned money not out of my house like most people have been doing. Trust me I am all for doing the right thing but when you have to pay a morgage and rent in another state money starts to get a little tight.

 

[steveny]

that is what I wanted to know. For me I dont use credit cards ever the way I see it and it has worked for me is if I dont have the money then i cant afford it. The only loan I have now is my house loan. All my cars are payed for and they were payed for with my hard earned money not out of my house like most people have been doing. Trust me I am all for doing the right thing but when you have to pay a morgage and rent in another state money starts to get a little tight.

Do you know if your loan is a recourse loan. If it is the bank may take your cars to satisfy the difference between the loan amount and what they get for your house.

 

[VampNSXX]

You think the economy is fucked up now?? Wait until more people who lack the responsibility to actually PAY BACK the money they were lent, default on thier obligations...

You BLAME the greedy people for getting us into this situation....Maybe you should put the blame on those who are truly responsible....THOSE THAT LACK THE RESPONSIBILTY TO DO THE RIGHT THING!

It sounds like you have the money but dont want to pay for a depreciating asset...isnt that GREED??

Sell, take the loss and move on...or are you bitter your "bet" didnt turn out the way you expected??

I have been doing the "right thing" all my life. So dont even start with that. Look I have no one to go to if I make one mistake. I dont have momy and dady to help me out or some one else. I was homeless at one point and worked my ass of for what I have so dont go there because you have no idea.

 

[VampNSXX]

I guess I am the odd man out.

When I bought my house , I bought what I could afford at the time. I worked my butt off to pay it down as quickly as possible. Working MAJOR amounts of overtime , sometimes putting in 12-16 hour days 6-7 days a week. Some months I had 2-3 days off for the whole month. Drove some very crappy beater cars , saved what I could. Took a lot of ribbing from my co-workers about the cars I drove while they all had new cars. Some of my co-workers were buying new cars every 18 months while I was driving a 20 year old beater. Did not have much of a social life. Luckily my girlfriend at the time was sympathetic and understood what I was trying to achieve. My only other thing my money was being spent on was my 401k. It was tough for sure but I did it.

I was able to pay off my house in just 12 years instead of 30. Cracked open my first bottle of Dom Perion (sp) and shared it with the neighbor as I burned a copy of the mortgage. That was a day I will always remember.

A couple of years after paying off the house I went out and bought something just for ME. The NSX. All those co-workers who ribbed me about driving crappy beaters now were in awe as I had the nicest car out of 1350 employees.

Then , a whole bunch (353) of us were laid off as our jobs went to Mexico. THAT got interesting as I watched most of my ex co-workers scramble to try to fight to keep their heads above water and fight to keep their new cars and houses with little equity. I decided to take the full six months of unemployment and get trained to pursue the profession that I am currently doing. I had never really used unemployment because I always would find a job quick rather than collect so I felt that I was about due to use it and got training.

I bump into some of my ex co-workers now and then. Almost every one asks me the same question " Do you still have the NSX ? " Yep. The looks I get from that response is priceless.They all had to sell their toys and new cars and are now driving beaters.

With the mortgage crisis it has only gotten worse for them.

Sad , but true.

Live within your means. My favorite quote ' It is not how much you make , it is how much you keep. '


I guess I have a different value system than most of my generation. My value system was shaped by people a little bit older than my generation and understood hard times and how to not get caught in the trap that a lot of people are in right now.

Yes , I still have the NSX. I am currently debating to sell it and the house to buy a bigger house. ( But not too big )

The time is about right to do this. Then after the dust settles , I can get another NSX when the finances are right.

that is what i was trying to do. I actually payed down about 150k in about 3 or 4 years. every bonus went to paying it down. But like I was saying I had to move for my new job and its hard to pay all this money every month. If I would have not been laid off my old job I would not even have a problem since I would not have to pay a extra 1500 on rent every month plus other stuff that comes up.

 

[Dtrigg]

I have been doing the "right thing" all my life. So dont even start with that. Look I have no one to go to if I make one mistake. I dont have momy and dady to help me out or some one else. I was homeless at one point and worked my ass of for what I have so dont go there because you have no idea.

I certainly don't know the facts regarding your situation and I don't pretend to. That being said, if I found myself in a situation like yours, I would get a second or third job, cut my lifestyle to the bare bones, sell my cars and get a beater, and any other assets I had, move to a cheaper apartment, etc. Anything to maintain your mortgage until you find a renter or sell your house. I would avoid walking away at any costs. Have you considered getting a job where your house is located? That way could move into it a pay the mortgage. I wouldn't be driving a NSX if I couldn't pay my mortgage. Please understand, I am not making value judgements about you, only trying to put myself in your situation.

Just my two cents. Good luck.

 

[VampNSXX]

Do you know if your loan is a recourse loan. If it is the bank may take your cars to satisfy the difference between the loan amount and what they get for your house.

I don't know to tell you the truth. Were would I find that info? do I call the loan company? Plus I am just asking since its getting tight right now I will consider leting it go once shit hits the fan but till then I am jus going to stop buying stuff that I like and dont really need.

 

[VampNSXX]

I certainly don't know the facts regarding your situation and I don't pretend to. That being said, if I found myself in a situation like yours, I would get a second or third job, cut my lifestyle to the bare bones, sell my cars and get a beater, and any other assets I had, move to a cheaper apartment, etc. Anything to maintain your mortgage until you find a renter or sell your house. I would avoid walking away at any costs.

Just my two cents. Good luck.

I don't think so. If I worked more I would have a 24 hour shift and that is not going to happen.

 

[docjohn]

Vamp,good to see you staying in this thread:smile: Seems to me renting your house is a good stop gap measure.Next would be to renegotiate your mortgage terms with your lender.What would be your out of pocket if you had to sell and pay off the loan balance.

 

[Ko-nsx]

Im not sure about you guys' friends and family situations but most of the people i worked with in the past, bought homes primarily for the school systems. In STL, living in the city was very affordable, no trash bill, low water bill and lower RE taxes. If you wanted your kids to get a decent education, the county schools were much better than the city schools. So the majority of the people i know that seemingly,"bought houses they couldn't afford", did so for better schools for their children, better neighborhoods, etc.

The cost of living in the city was cheaper but the cost of private school was normally the DP or 20% of a home in the county. So the situation is
1. but a nice home in the suburbs for my family sake?
2. stay in the city and pay for private schools, but deal with the riff-raff of city living?

Maybe some saw this coming, but most people i know unfortunately don't have the financial prowness to be ahead of the tide. Having a trade i have been fortunate enough to have a comfortable income, but i know plenty of college grads that are savy and make good decisions, but when you have NO money coming in, what are you to do?

Vamp, i have noticed that many lenders will help you with loan modifications, but you have to be at least 2-3 months behind(crazy ain't it).
so you basically have to destroy your credit to get some help. Renting is an option as well.

Good luck with everything:smile:

 

[steveny]

Having a trade i have been fortunate enough to have a comfortable income, but i know plenty of college grads that are savy and make good decisions, but when you have NO money coming in, what are you to do?

what does someone do? They use the money they made and saved while they had a job, unless they pissed it away and lived like the sun would never stop shining. those who save for a rainy day are truly savvy and make good decisions.

 

[Daedalus]

Generally if you purchased the home as a primary residence and did not do a refi on the mortgage, then it is a non-recourse loan. If you have ever refi'd then it is probably a recourse loan.

Keep in mind there may be tax implications with any foreclosure, loan mod, debt forgiveness, etc. The laws have changed in the past few years, and I don't know what the current status is. At one point, all outstanding debt at the time of foreclosure was considered taxable by the IRS. In other words, if you owed $500k, and then went into foreclosure and the bank sold the house for $300k at auction, you would be liable for taxes on the $200k difference. Luckily for all the deadbeats (no offense to you and your particular situation ), lenders have the option but not the obligation of reporting these amounts to the IRS via a 1099, and very few reported. So technically the taxes were owed, but the IRS didn't know anything about them. Again, the tax laws have changed, so look into it. Also, states have their own laws and may treat the balance as taxable as well, regardless of what the IRS does. Finally, there's nothing to say that the IRS and/or the states won't start digging into this mess later and levy back taxes on people. Think how screwed up budgets are and how short governments are on money. I think the only reason they haven't done so is they don't want to waste time trying to squeeze blood from turnips.

 

[eddiensx]

remeber, if the house was your primary mortgage, you may not have to pay tax on the funds your lender 1099's you. You are allowed 250k in cap gains tax free if you are single and 500k if you are married, and lived in the house 2 out of the last 5 years. so there would be no tax due.

I suggest that you tread very carefully. I have been making a large mortgage payment on a hluse I used to live in for 2 years. I have relocated 2500 miles away, and most people can't get a loan to purchase my house, so I get to throw away 5k every month on the mortgage. I have been doing that for the last 2 years. I think I will try to rent it out if I can't sell by January.

 

[Daedalus]

remeber, if the house was your primary mortgage, you may not have to pay tax on the funds your lender 1099's you. You are allowed 250k in cap gains tax free if you are single and 500k if you are married, and lived in the house 2 out of the last 5 years. so there would be no tax due.

You're confusing tax on a gain (not an issue here) with tax on a forgiven debt. A quick Google shows that currently there is no federal tax due on the forgiveness. This will change after 2012. And again, states have their own tax laws.