Hey, you made a bad bet and you lost. You lied about your income and took out a no-down, no-doc, interest-only, teaser-rate, piggyback negative amortization loan (good god does anyone remember 30 year fixed?).
You bought a mansion you had NO BUSINESS living in at your income level, you bet prices would go up and instead they cratered, and now you can no longer make your reset payment.
Who cares!!! You're not the bagholder! Hedge funds, foreign banks, US taxpayers, insurance companies and people all over the world are! But not you, no way no how!!! Party time!!
So just walk away. Send in the keys. Jingle mail. Ah, the American Dream!!!
Since there's no such thing as personal responsibility, ethics or morals anymore in America, you get off scott-free. Just walk away, stop hemorrhaging cash, and try to keep as many of your ill-gotten gains as you can.
I hope you transferred some of your cash-out-housing-ATM-refi-loot to unmarked Swiss bank accounts. I hope you bought lots and lots of stuff that you can now put on eBay. And a few years from now, don't forget to pull the same scam again!
Sleep tight!
September 03, 2007
A HousingPANIC message to the failed Housing Gamblers of America: You made your bet, you lost, now send in the keys and run
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14 comments:
Why be in any hurry to leave???? Just cool it and live rent/mortgage free for several months or a year and see what the yo-yos in DC offer you as a bailout.
The bailout offers have got to get tastier as the election nears. Just chill.
HA!
Run?
The government will pass a debtors law where said people are drafted into the military. From "2005 real estate mogul" to "guarding barren Iraqi desert".
I mailed in my keys about six months ago. I have a trailor in the Sierras and 10 acres of land. I took all my money and put it into Canadian dollar accounts and Canadian travelers checks. I came out lucky and with no debt. My stress level is near zero, and my live is much happier. As FDR said "All you fear is fear itself". I was scared at first but very happy now. I'm going to look at a lot in Mexico next week, and I can build a nice place for about $50k, and the cost of living is cheap.
Mail in the keys! Free yourself from the system. Just drop out! It's fun!
There will be a DC bidding war for FB votes. Who can hand out more money to the flippers and liars?
again, don't forget the new bankruptcy laws written by banks that make lending to anyone with a pulse attractive. these home debtors are indentured servants for the rest of their lives. debt forgiveness is harder than before. it's not that easy to just walk away.
For too many people their houses are extension of their self-worth.
It will be *very painful" for these status concious, insecure people to give up what they feel
they absolutely need in their lives to be viewed as "successful".
kw southern ca you are exactly right. These FBs with their big egos are too busy working trying to pay the mortgage for a home they have no time to enjoy. And they will continue with the pain until the marshal comes calling. Then it really will be too late.
Hey Keith,
You got that jingle mail line from my previous post, didn't you? I think it's a catchy phrase we will start hearing more and more as the years go by. I think that while we may suffer something similar to a depression, long term tanking the dollar make foreign goods unaffordable, and we could soon be the nation of cheap exports, and that would create many new jobs. Come to think of it if we did merge our currencies with Mexico and Canada using the Amero similar to the Euro some good things may happen. We would have access to the natural resources of Canada, and a manufacturing workforce in Mexico. This could be the master plan of the government all along. I wonder what something like the Amero would do to Real Estate prices.
Bottom Feeder in Philly
I am guessing that if someone lied about their income and then defaulted on their mortgage they will be going to jail unless they give the appearance of being really stupid or not being literate in English. If your education level indicates you couldn't read your application the prosecutor will probably figure it was the mortgage broker that did the lying.
Anyone with a bachelor's degree or more had better start pumping iron or else flee the country.
At least - I hope there will some accountability where clear fraud was involved. Probably just wishful thinking, though.
i had a neighbor who put his house up for sale when his wife annouced she wanted to go to florida to live with the love of her life, her girlfriend. (kids in tow she split after one nasty argument all the kids walking to school and the nosey neighbors listened to.) the house had been on the market (while she was there) for a year the price was dropping like a golf sized hail. they were sure it would sell on the market for a day. i told them the market stinks are you sure (this was 2005 october to be matter of fact). they said yeah it'll move we have 2005sqft and 1/4 acre lot. lots of improvements it'll move. well you know the story it didn't. soon after the MRS. left and no one even bothering with the open house, the price went down to 450 to unload. it's a nice property. SUDDENLY, IT SOLD FOR 649,000. How could this be? from 450 to 649 my house is bigger and I have a decent lot, I should get 750 easy. fast forward the house is now abandoned. the next door neighbors cut the lawn so their house won't look so bad. the house is in foreclosure and signs are taped all over no trespassing. like people are going to stay away. so far no homeless people. no one ever moved in and my neighbor is gone new money probably spent faster than an addicted gambler at the horse races. Put it all on Lucky Lucy although she looked a little lame. That is what the smart people did long ago. All the people who split now won't be going with a pocket full of brand new dollars. they will just be leaving. uhauls in drive ways during the work week so the neighbors are at work and won't see them slink out, and leave an abandoned house thanks to the subprime mortgage. Some nitwit just bought a house around the corner. I hope he paid alot for it so I can still get more for mine. my house is twice as big as his. HA HA HA
Jingle mail- love it
I honestly don't know how people afford to live in those bubble cities, but in some places I think that buying is still attractive.
I bought a house in April in Nashville and my 30 year fixed is 840/month including my taxes and insurance.
I couldn't rent my house for that, it would be well over a grand in this area.
Folks if you are up-side-down on your mortgage there is some good news and a excellent reason to walk away as fast as you can before prices drop even more.
You can use the IRC Sec 121 exclusion for the cancellation of debt income (COD)!
So, it's OK! You'll be just fine and you can sleep at night knowing you don't have that toxic mortgage hanging over your head. But do it now before they change the rules.
Home-sale exclusion opportunity
There is one bit of good news for our hypothetical homeowner and others dealing with foreclosure-induced taxes. You can get out from under at least part of the IRS bill if you meet the homeownership tax-exclusion rules.
This popular tax break allows a single homeowner who sells his property under more favorable circumstances to exclude up $250,000 profit from taxes; the exclusion is $500,000 for married couples filing jointly.
The exclusion also applies in foreclosures. As long as the "seller," in this case the foreclosed-upon owner, lived in the home as his principal residence for two of the last five years, he also can avoid taxes on any capital gain profit, phantom or real.
Amazing isn't it that mortgage ARM resets will be coinciding with the Holiday Season giving "Jingle Mail" a whole new bit of scrooge based irony!!
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