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1
Posted on 6/16/15 at 12:37 pm to dat yat
It's the homeowner's fault. They signed the deal.
Now, we can attribute fault without attributing moral fault. Do I think you're probably at fault for taking on too much risk, a bad investment, etc.? Yes. Do I think you're some shitbag of a person? Not necessarily.
Now, we can attribute fault without attributing moral fault. Do I think you're probably at fault for taking on too much risk, a bad investment, etc.? Yes. Do I think you're some shitbag of a person? Not necessarily.
Posted on 6/16/15 at 12:41 pm to gorillacoco
quote:
Is it their fault that the home lost value? Do you think they owe the bank the full price of the home? Would you sit on a home like that for years to pay back the 60K loss you sustained?
its not their fault the home lost value.
yes, you owe the bank whatever you agreed to/on.
No, I'd cut my losses and chalk it up to experience.
Posted on 6/16/15 at 12:42 pm to TigerPanzer
quote:
Even with a foreclosure, my current credit score would be in the 700-750 range: good, or at least, good enough for me
Based on what?
I know I consider myself pretty much an expert in the FICO world. But I have never heard of a foreclosure only costing someone 47-97 points. Its generally closer to 200 points.
But don't take my word for it:
quote:
Experts estimate that a foreclosure will lead to a dip in your credit score of about 200 or 300 points. So let's say you had a near-perfect 800 FICO score pre-foreclosure; after the foreclosure, you might have a credit score that was more in the 600 or lower range, which is considered bad (FICO scores range from 300 to 850).
LINK /
Posted on 6/16/15 at 12:43 pm to Lsupimp
quote:
Were they ethical to walk away from ther mortgages? No.
Were they rational to walk away from their mortgage? Yes.
I'm no expert, but, I thought that walking away and letting your home go into foreclosure should be an option to be considered for every underwater homeowner?
If walking away is the best financial option, why not do it?
Posted on 6/16/15 at 12:44 pm to gorillacoco
Maybe people should stop looking at their home as primarily an investment.
Posted on 6/16/15 at 12:51 pm to gorillacoco
the market cannot be controlled...buying is like gambling in a way...mines underwater....just keep plugging away and hope that the market changes in your area...then get out..
Posted on 6/16/15 at 1:02 pm to gorillacoco
I'm 42 years old and our home, valued around $380,000, will be paid off this December. My wife and I made the decision 10 years ago to sacrifice now and get the thing paid off ASAP. I can't wait for the day to not have a house note.
Posted on 6/16/15 at 1:02 pm to Catman88
quote:
Based on what?
I know I consider myself pretty much an expert in the FICO world. But I have never heard of a foreclosure only costing someone 47-97 points. Its generally closer to 200 points.
When we did the deed-in-leui in 2012, my credit rating plunged from 800 to the 600s. Today, I've almost got an 800 with the DIL, so knock off 100 points for a foreclosure and I'm still at 700 or more. And of course, that extra 100 in credit points cost me $25K--for the lawyers and DIL payment to the mortgage company.
The only way I'm hurt is if I go to a bank for a loan on a house--
… which I have no intention of ever doing again.
Home owners--enjoy your home, hope you never get bit by the horrendous market that hit so many of us a few years ago … and I hope you make $$$$ on your investment in your home.
Signed,
Content to Rent
Posted on 6/16/15 at 1:02 pm to kilo1234
quote:
You pay so much in mortgage interest (and mortgage insurance, depending) over the years that "building equity" is incredibly misleading. Not to mention property taxes, homeowners insurance, maintenance, etc.
Buying a home is not an "investment", it's simply you buying a home vs. renting it.
You can't really say this without comparing apples to apples. Sure, you could spend a decent amount of money on taxes/insurance that you wouldn't by renting, but you're ignoring that renting means you're paying profit to your landlord. I pay less per month for my total mortgage payment than I could pay to rent a similar house in my neighborhood. So the only extras I'm really on the hook for is upkeep, and I'm OK with that.
To add to that, a professional athlete rented next door to my parents. The house he was in could be bought in the $375k to $400k range. His rent was $3200 a month. You could buy it and pay much less per month after factoring in insurance and taxes. And that doesn't take into account any equity (even the small bit you start building form day 1). The only thing that really hurts you is closing costs outside of the down payment, but sellers cover a chunk of that these days (most times).
Posted on 6/16/15 at 1:05 pm to RogerTheShrubber
quote:
Maybe people should stop looking at their home as primarily an investment.
Beat me to it. I bought the home I did because I wanted to raise a family in it knowing that in 20 years, I would own it and no longer have a mortgage. When investing in real estate, I take a completely different approach.
Posted on 6/16/15 at 1:07 pm to CajunAlum Tiger Fan
quote:
quote:
Maybe people should stop looking at their home as primarily an investment.
Beat me to it. I bought the home I did because I wanted to raise a family in it knowing that in 20 years, I would own it and no longer have a mortgage. When investing in real estate, I take a completely different approach.
truth
Posted on 6/16/15 at 1:08 pm to gorillacoco
Buy rims you can't afford? Trash.
Buy a house you can't afford? It could happen to anybody.
Spinners all day son!
Buy a house you can't afford? It could happen to anybody.
Spinners all day son!
Posted on 6/16/15 at 1:26 pm to CajunAlum Tiger Fan
quote:
Maybe people should stop looking at their home as primarily an investment.
Beat me to it. I bought the home I did because I wanted to raise a family in it knowing that in 20 years, I would own it and no longer have a mortgage. When investing in real estate, I take a completely different approach.
Bingo. My house is a home.
Posted on 6/16/15 at 1:38 pm to kilo1234
quote:
You pay so much in mortgage interest . Not to mention property taxes, homeowners insurance, maintenance, etc.
You pay all of this when you rent as well. It's not like your landlord is doing it to give you a break and he just eats these costs. He prices his rent to cover everything you just mentioned. Except most of it is higher because it's not considered his primary residence. Add to that the profit he is looking to make and you are in the hole more for rent than buying every time.
Now, I'm not saying renting is always the wrong option. Depending on your requirement to move quickly, high quantity of other debt, or other circumstances like that, then it may be smarter to rent. But from a purely financial standpoint, you cannot say that renting is cheaper because you don't have to pay for x,y,&z as a tenant.
Posted on 6/16/15 at 1:41 pm to TigerPanzer
quote:
simply walked away from the place
I know a couple that did this recently. They bought 2 new cars and stopped paying their house note. It was a great move for them, but somebody is going to pay for that mortgage and somebody being the customers at that bank.
Posted on 6/16/15 at 1:43 pm to CajunAlum Tiger Fan
Damn, I'm glad some other people see it the way I do.
Posted on 6/16/15 at 1:45 pm to HaveMercy
That couple has their priorities fricked up.
Posted on 6/16/15 at 1:47 pm to RealityTiger
He's saying they bought 2 new cars because they knew their credit was about to be shot for the next few years. Makes perfect sense.
Posted on 6/16/15 at 1:49 pm to gorillacoco
What is this thing you speak of?
Mortgage
Mortgage
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