September 14, 2007

A Special HousingPANIC Message to the Toxic Mortgage Gamblers with 3% Teaser Mortgages Resetting to 10% - STOP STRESSING - WALK THE FU*K AWAY AND RENT


Remember in the movie Titanic, when the ship breaks in half and Leo and Kate rush to the top of the boat to give themselves a fighting chance, while others slide down into the cold waters below to their sure deaths?

We're to that point.

It's now every man for himself. Financial survival is the goal. Help the women and children if you can, but if you're dead, you can't be of much help.

And yes, I have a BIG problem with people who sign contracts and walk away from them. Or who borrow money and then don't pay it back. But we're to that point, and I'd rather see banks, hedge funds and corporations screwed over before I see real people take it on the chin. People gotta eat. And when your loan resets from 3% to 10%, you gotta do something.

So if you're a housing gambler or homedebtor who's facing the ARM-reset-disaster, stop stressing, and get ready to walk away if you can't refi. Don't forget to gut the house and put everything on ebay before you move.

And remember HP'ers that it was banker buddies Bush and Greenspan who gave these failed gamblers the green light in the first place.

37 comments:

Anonymous said...

What an a**hole kind of remark! Gut the place - so your motto is screw others as much as you can before you screw yourself? Nice way to live a life. I hope to hell you decided not to have kids with an attitude like that.
oh, by the way - thanks for posting this dissenting opinion of your screwed up values on your blog. At least you are open enough to hear reason.

Anonymous said...

Huzzah Keith!

I've been beating this drum for months. Leave, declare bankruptcy, get a fresh start. Hope you handle your second chance better than the first.

k.w. - southern ca. said...

Is what *others* think more important then making a better financial decision?

Rent *until* you can get control of your debt, then if going into debt again on a house is what is needed to feel complete, there will be plenty of lower-priced opportunities as time progresses.

Prices have a long, long way to fall until any significant house debting starts again.

Boy ... what a mess.

Anonymous said...

What's up with Senators Dodd and Schumer? They keep talking about a bailout! They wont let it go
even though the majority of the American public is against this!

They want the FHA to raise the loan guarantees to upwards of half a million dollars or more, depending upon the circumstances. This is just like the Amnesty bill that Americans were against but the senate and Bush just wouldn't let it go until talk radio and bloggers everywhere raised such a stink that it eventualy died down.

The same needs to be done with this talk of housing bailout. I am at my wits end!

Anonymous said...

From the TITANIC...to the POTEMKIN!!

MUTINY!!...........I love it!!

Anonymous said...

Pretty good advice. Some will balk and say that the right thing to do or the "moral" thing to do is to abide by your contract. So if payment goes from 1500 to 2500 suck it up and pay and too bad that the house is decreasing in value. Some poor bastards will eat rice and beans and keep on paying. Frankly, the "morality" of this is lost on me. It is a jungle out there. Who suffers more the stupid bastard who has to pay another 1000 per month or the Mozillos and denizens out there. F the mortgage guys

OwenF said...

at the same time cash advance all your unsecured credit and dump the funds into metal bullion

Anonymous said...

Why should taxpayers have to subsidize people who live in $500K houses? Not too long ago, only rich people could afford half million dollar houses. The past few years we had schoolteachers and coffe jockeys buying them by the dozen. It's time to end the insanity.

Tell Bush, Hillary, Schumer, Dodd and Obama to keep their greasy paws off our money. Let the Wall Street bankers who made tens of billions in bonuses the past few years bail out the flippers and deadbeats.

Anonymous said...

but don't we have a moral obligation to bail out those victims? i wouldn't want to be a selfish republican or libertarian and let all those victims lose their homes. we should all be good democrats and save the homeowners.

Stuck in So Pa said...

"Gutting the house and selling on Ebay" is happening right now! I don't do Ebay anymore because the starting prices and final bids have just gone crazy, but I still keep track of my favorite categories. Even allowing for the fall selling season (going into the holidays) the amount of stuff up for bid has skyrocketed, as has the selling prices. I figure either the pre-bubbles that sold out at the top and have plenty of cash or the FB's wringing that last HELOC out are the driving force.

Ebay, the next bubble? Remember they are not making anymore "stuff" for Ebay (at least no in the U.S., and certainly not quality.) Bid now or be priced out forever!

Anonymous said...

Agreed, the game is rigged anyway so this will be Karma to the banks and the markets, F' them....

Anonymous said...

Feeling good, just got a 16% boost in monthly income. 5.5% fixed in a stable area (3years ago) and a job that at the moment seems safe ( Naval Officer). Yeah I see more for sale signs around, but I heard no real panic yet. The guys that are going to get killed are the PolyHeloc crowd that kept taking and taking and saying "its free money" I would enjoy a real estate talk in a social setting, but its real quiet out there, still a few people I know are buying. Best of luck to everyone and take those rent to own rims and tires back, they are not a good investment!

Anonymous said...

Why should they? Just wait it out afew month until the bailout is finalized. Most likely what will happen is the loans will be forgiven up to the portion of the value. So if FB took out a $500K loan and his house is worth $425K, presto the loan is now $425K and will be fixed for 30 years at 6%.

borkafatty said...

Di Bush say on TV last night that Jobs were being created in Iraq...??

This president is way out of touch...Just like his Old Man was...remember when Bush Senior was walking through the Super Market, and he was at the check out counter, and was truly amazed at the bar code reader...Jobs in Iraq...Paleeese!

Oh and FB'S walk..no wait Run!!!

Mammoth said...

“This president is way out of touch...Just like his Old Man was...remember when Bush Senior was walking through the Super Market, and he was at the check out counter, and was truly amazed at the bar code reader”
---------------
Thanks, Borkafatty. Blew coffee out my nose after reading that reminder of loser Bush 1! What – didn’t this happen 15 years after bar code readers first came out?

Kinda like when a reporter asked Lamar Alexander (another republican), when he was campaigning for the presidential nomination years ago, how much a gallon of milk, a loaf of bread, and a dozen eggs cost.

The bozo didn’t even have a clue! This is just one indicator of how far out of touch this country’s politicians are. And they are supposed to be representing us?
WTF?

Try popping this question to any one of the presidential candidates today and let’s see what kind of an answer you get.
-Mammoth

Anonymous said...

Why do the women and children get saved? I mean, if you really think about it, they are probably less likely to make it in the world- the woman ends up turning tricks to get by and the kid gets put in an orphanage. In fact, it is probably more humane to just put their heads under the water.

babbleon said...

Great blog. All of these articles are making me wonder what the next great investment opportunity is going to be.

I sat back working my 9-to-5 and saved money during the dot-com bubble and the housing bubble that was fueled by the former.

I'm curious - where is the next bubble going to be?

responsible caveman consumer said...

What did bankers/loan originators think would happen when things get a little difficult for a borrow who they let buy a home with 0% down and financed closing costs????

Even with my primitive caveman mind it is clear what will happen.

turdly said...

I'd hire a known sex offender and not bat an eye. I won't hire anyone who has ever walked away from financial responsibility.

I employ or cause to be employed about 3000 people. I do not hire people with foreclosures. I do not hire people with a track record of not paying their bills. I do not own rentals, but if you have a foreclosure I'll all but bet that the security deposit and the rent will be at least 50% higher than for those people who do not have a foreclosure. It'll be as legal as a pet deposit and higher pet rent is.

So tell everyone to give up their future. Remember that those who walk away will make up about 3% to let's say 25% of their general peer group. I have a vast pool of labor to pick from without picking one of the foreclosure sucks.

They shouldn't walk away. They should sell the damn toys, get a second or third job and carry on as a citizen. I'm not the biggest employer out there, but I think just like they do.
One of my peers was walking down a hallway in his office when he overheard someone say they had bought their 4 year old kid the $500 desk at BabyGap. He fired the guy on the spot. While some of you are stupid, while some of you tolerate stupid, some of us aren't and don't.

Anonymous said...

Here's how the bailout should work:

1. Get rid of the Foreclosure/Short Sale debt forgiveness tax.

2. Make it against the law to put a bad mark on someone's credit rating for walking away from a house. The bank owns the asset and gets all the equity (or lack thereof).

Simple. Little guy learns a little lesson. Big guy learns a big lesson.

Anonymous said...

Another option aside from walking away might be to get rid of the combined $1000+ car/suv payments, get your s*** together, stop blowing your income on crap, and figure out how to net more money.

It doesn't help the rest of us when you screw everyone in your community. Grow up, pay your bills, and unload your unnecessary s*** before the other folks in your situation.

For those who haven't screwed up, check out Craig's list for the deals!

Anonymous said...

anon 9:55, were you sleeping when Bush gave the big press conference on supporting a bail out. I think Bush might be a Republican?

Anonymous said...

Well, I see your point, and don't
disagree...just how are they going
to rent?

You are broke enough to lose your house; not like you've been saving
for a move, right? You are in trouble
for a while financially, so basically
you are broke.

Landlords want good credit, first,last, deposit, pet deposit
of about 200 dollars (don't tell
me you didn't have a pet or two in
your "home of your dreams")..

And because of Children's Service
regulations, you have to have separate bedrooms for yourself and
children past 3 or so, separate
bedrooms for kids of different
genders past same age...

So a lot of families are going to
be moving in with family who already has a home, and if they
are in an apartment, lots of sneaking and hiding going on:
STRESS for everyone, especially
kids.

Those who can't make those kinds
of arrangements will live in their
cars, on the streets, or in shelters.

Do what you have to do people.
It isn't only excrement which will
hit the fan; illusion will and
reality will out.

Grandma PKK

Anonymous said...

next bubble is gold and silver stocks

turdly said...

Kieth you're the new Suzanne. You have researched and have told the sheeple that they can afford it. I can sse the blogs a year from now; 'but Kieth told me to walk away.'

We'll call you 'Ennazus' from now on. The antithesis of Suzanne.

But honey, Keith researched it and said we could walk away.'

Anonymous said...

"turdly said...
I'd hire a known sex offender and not bat an eye. I won't hire anyone who has ever walked away from financial responsibility.

I employ or cause to be employed about 3000 people. I do not hire people with foreclosures. I do not hire people with a track record of not paying their bills. I do not own rentals, but if you have a foreclosure I'll all but bet that the security deposit and the rent will be at least 50% higher than for those people who do not have a foreclosure. It'll be as legal as a pet deposit and higher pet rent is.

So tell everyone to give up their future. Remember that those who walk away will make up about 3% to let's say 25% of their general peer group. I have a vast pool of labor to pick from without picking one of the foreclosure sucks.

They shouldn't walk away. They should sell the damn toys, get a second or third job and carry on as a citizen. I'm not the biggest employer out there, but I think just like they do.
One of my peers was walking down a hallway in his office when he overheard someone say they had bought their 4 year old kid the $500 desk at BabyGap. He fired the guy on the spot. While some of you are stupid, while some of you tolerate stupid, some of us aren't and don't."

-----------------------------------

Are you for real? Your handle of Turdly must be very telling. You would rather hire a convicted SEX OFFENDER than a person with a forclosure. Well, I would love to be your corporate attorney, because I would have no end to work.

If your hiring practices are really this way, then you must have some pretty stupid employees. Lets do the math here. Hold on to an asset that is losing money by the day into the thousands, only to be a slave to an adjustable rate mortage to feed the riches of the Mozillo's of the world. That is not the type of person I want managing anything at my company other than maybe the kitchen. That is like saying that Bush is correct in continuing to let troops die in Iraq on a war that is obviously not going to bear any kind of fruit. I want an employee that can realize a loss quickly, cut the loss, and then move on.

Sounds to me like the best and brightest don't work for you. Please tell me what company you own so I can avoid that stock like the plague...

Wishing for sanity in Banking said...

"Anonymous said...
Here's how the bailout should work:

1. Get rid of the Foreclosure/Short Sale debt forgiveness tax.

2. Make it against the law to put a bad mark on someone's credit rating for walking away from a house. The bank owns the asset and gets all the equity (or lack thereof).

Simple. Little guy learns a little lesson. Big guy learns a big lesson."

I could not agree more. That would IMMEDIATELY shift responsibility back on the shoulders of the banks. Then they would have to reprice risk to account for the fact that THEY would lose big if they handed out money like water. All of a sudden, even the juicy profits of commissions and closing / repackage fees would be weighed against larger losses.

Let me add 3 more to the list.

3. Change the GAAP to make banks have to book ACTUAL profits and not imagined profits on interest that has not been paid yet.

4. Make off balance sheet CDO conduits transparent so they cannot be hidden from shareholders.

5. Make CDO brokers responsible to CDO investors for losses. They will not be able to shift risk without knowing it is a good risk.

6. Eliminate GAAP allowances that make it ok to "Mark to Myth" if they can't market a security. They would no longer offer products that were ridiculous if they had to disclose that crap was actually worth.....well crap.

This would OVERNIGHT make the industry reformed. It would temporarily cause more pain in the housing market, but would DIRECTLY effect the people responsible instead of enriching the criminals on the backs of the person shafted by the banks. Homedebtors would then have a once in a lifetime "reset button" where they could then purchase at much better price, and SOLID financing, or rent.

They need to also make the same rules for the credit card companies. This would again give them incentive to only make loans to people who they know are a good credit risk. Again, would cause some initial pain, but the long term health of the economy would be solid since growth would be actual growth and not sustained by low wages leveraged to high debt. This would also reform a lot of the hedge funds, since banks would not be willing to fund garbage hedge funds which then run up the market with their high leverage.

All around would tie our economy to real wealth instead of artificial leverage backed by worthless paper.

Anonymous said...

Get ready to write a check out to Jose the illigal immigrant strawberry picker who bought a $700,000 house. Those checks will go a long way to keep Jose in his comfortable mansion and give the Wall Street bankers a big bonus this Christmas. Thanks Hitlery Clinton.

AmazingRuss said...

I came pretty close to buying in 2004...not for investment, but because I wanted my own house. I think there are a lot of people out there that bought for that reason. Add to that the priced out forever panic, and I think its arguable that a lot of decent, normal people got sucked into this mess along with the scumbags. A little greedy...a little dumb...a little mystified by the arcane process...every story is different.

For DECADES, buying a house was the right thing to do once you reach a certain age, and this bubble went on for a long time, and fell during the period when I was supposed to be buying. It was damn hard for me to stay out during the run-up...despite my bullshit alarm ringing full blast. I'm an unconventional soul, too. The pressure on your average Joe that gives a crap what his peers think must have been enormous.

Everyone has their areas of expertise, and for the rest we are dependant on the expertise of others. A few of us were lucky in finding this blog. Many had only the advise of 'professionals'. We could see here how ludicrous the advice was, having it presented in context, but when you have no frame of reference, bullshit can go down pretty easy.

The flippers are going to walk. The bankers that made these decisions are going to take their bonuses and walk. Why the hell should the people that just wanted a freakin house to live in be enslaved for the rest of their lives? They'll get their credit trashed, and be broke for a few years. I think that's plenty of hurt to make them learn from the mistake.

The government doesn't need to bail anybody out...the invisible fist of the market will deal with the ultimate bagholders, the banks and the stupid CDO investors.

To current homedebtors, I echo Keith: Walk away your overpriced prisons people! The longer you hang on, the longer you are a slave. The government is not going to do anything but help you stay enslaved. The Fed cannot help you at all. You f*cked up, maybe got greedy, definitely got swindled, but you didn't hurt anybody that didn't have it coming. Learn your lesson and start rebuilding your life. You just participated in a 2 million car pileup, and some people were killed. It's done, can't be undone, so let it go.

congressman said...

When will the FB's start pimping their adolescent daughters out to make the mortgage payments?

Anonymous said...

I'm looking at this a totally different way.

FB's -- DON'T WALK AWAY!

Stay in your overpriced sh!tboxes and cash in every bit of savings you have -- 401Ks from work, pensions, everything -- just to stay in your house.

Why? Because then when you inevitably lose your home anyway, you will have nothing to fall back on and then this little financial lesson will stick with you for the rest of your miserable lives, and your's children's.

I want FBs to feel maximum pain. They had no skin in the game, and now we're supposed to feel sorry for them? As far as I'm concerned, I want them fighting tooth and nail to keep their homes, and spending every last cent to their name. Then they're free to mail in the keys.

Yes, I'm evil that way.

Anonymous said...

I say we should let the sheeple bleed to death, then pick apart their carcases to reap a handsome profit. This country is all about getting one over on the other guy. F*ck them before they f*ck you. It's a dog eat dog jungle out there. Go buy a gun today - it's your second amendment right. If someone so much as looks at you funny, make them eat lead. That's the only way this country's ever gonna be great again. Ron Paul for president!!!

Anonymous said...

"I want FBs to feel maximum pain. "They had no skin in the game, and now we're supposed to feel sorry for them? As far as I'm concerned, I want them fighting tooth and nail to keep their homes, and spending every last cent to their name. Then they're free to mail in the keys.

Yes, I'm evil that way."

-----------------------------------

Boy they have definitely opened the freak show today. You sir are just an old fashioned A$$hole.

I would never wish for anyone to be enslaved to crooks and swindlers. If anyone should experience this fate, it should be Mozilo and the other Wall Street hacks that caused this. I take no pleasure in seeing a family lose their home, and people like you can continue to spout off, but the old karma thing is a commin. You WILL get yours, so sit back relax and wait....

turdly said...

sex offenders tha are on the street are highly supervised. Many are just guys who were peeing n the street. I know of a springbreak city that tags young women as sex offenders for flashing.

As far as personal financial responsibility is concerned, if you have a foreclosure you can piss right off. I ate plenty of Ramen just so I could pay my mortgage and JCPenneys. I expect others to do the same. It's a moetarty consideration. Take the house out of it and call it what it is; a loan. No house is involved in the equation, a mortgage is all that's involved. If you went back on such a promise to someone that took such a chance on you, I won't emply you. Period.

No stocks, all owned by me. I live like my worst year, not my best. Lots of savings, not a debt in the world. Average wage in my town is $9.50 for a construction worker. I pay the secretaries $20ph and go up from there. I pay for the finest, I pay the finest , and I garner respect from the finest.
I haven't lost an employee to a foreclosure yet. They seem to listen when I tell them something. And I told them three years ago what would play out. Those on variables flipped to fixed last year. We don't have a single variable loan under my roof. Needless to say my company newsletters are not about the picnic or jamie's new grandson exclusively. They have stuff about mortgages, student grants, new laws that will affect you, how to budget....

Anonymous said...

Quote from Turdy:
#####
I'd hire a known sex offender and not bat an eye. I won't hire anyone who has ever walked away from financial responsibility.

I employ or cause to be employed about 3000 people. I do not hire people with foreclosures. I do not hire people with a track record of not paying their bills. I do not own rentals, but if you have a foreclosure I'll all but bet that the security deposit and the rent will be at least 50% higher than for those people who do not have a foreclosure. It'll be as legal as a pet deposit and higher pet rent is.

So tell everyone to give up their future. Remember that those who walk away will make up about 3% to let's say 25% of their general peer group. I have a vast pool of labor to pick from without picking one of the foreclosure sucks.

They shouldn't walk away. They should sell the damn toys, get a second or third job and carry on as a citizen. I'm not the biggest employer out there, but I think just like they do.
One of my peers was walking down a hallway in his office when he overheard someone say they had bought their 4 year old kid the $500 desk at BabyGap. He fired the guy on the spot. While some of you are stupid, while some of you tolerate stupid, some of us aren't and don't.

September 14, 2007 5:40 PM
Anonymous said...
#####

Turdy is a prime example of how stupid, ignorant, pompous-ass piece of shit the Americano is today. Honor yourself as a responsible citizen my ASS !!!! You damn fool-of-the-hill Americano white-trash-piece of shit...

turdly said...

wow, tough day at the shit eating job?

You got all of that from what I said. I'm white, and stupid?

How stoned are you? Get a job.
The foreclosure won't hurt you....

Am I stupid because I won't hire failures?

Anonymous said...

Pre-Forclosure Appliance Sale

http://fortmyers.craigslist.org/gms/423080764.html