October 04, 2008

HousingPANIC Thought of the Day


Isn't it odd that everyone in government is talking about the importance of keeping "homeowners" in "their" homes...

When what the people are really thinking is - how fast they can get out of these damn things?

61 comments:

Anonymous said...

how true! interesting thought of the day!

Anonymous said...

YEAH, give them hope so they totally liqidate their resources hanging on and then slam them.
brilliant !

Anonymous said...

And the stupidity of it all is it's still going on! That $700 billion plus has been committed to the black hole of past sins. RATHER, it should be entirely used for infrastructure improvements and buildouts on a grand scale throughout the country. That would create millions of jobs and give people loads of income to spend.

Dan said...

Not only that, but 1/2 of those people are in homes that they can't afford anyway!

Why should *I* pay to keep a $13K/yr landscaper in a $700K home?!?!?!?!?!?!?!?!?!?!?!?!?!?!??????

The inmates are running the asylum.

Privatize the gains, socialize the losses.

Personal and social responsbility is officially dead in the U.S.A.

Andrew from Russia said...

IMHO "Struggling Homeowners" is a brilliant propagandist expression, Soviet-style. It's an eloquent call for sympathy blended with defense of "homeownership", all fit into two words.

keith said...

Homeowners generally don't struggle.

It's the homedebtors.

I wish the MSM or politicians would understand the difference.

Anonymous said...

I object to the notion that underwater homedebters should bail on their obligations. If this were to happen the entire economy will fall far worse then you can imagine. Look what it has done already.

We should promote the pride in ownership and stature of being a "homeowner".

As another benefit to us prudent savers, these people will be out of the system for quite a while as they struggle to make up for their past mistakes.

Anonymous said...

History will repeat it self . We did not learn from it. Are we now subjects not citizens? God help Us.

http://www.youtube.com/watch?v=fRdLpem-AAs

vanilla ice said...

"Homeowners generally don't struggle.

It's the homedebtors."

"Homedebtors" has yet to enter the vocabulary and yet to even be considered a concept except for HPr's.

Anonymous said...

Excellent point. Even if they rework the mortgage payments to an affordable amount, why would anyone want to coninue living in a home worth 60% of what they owe on it.

Anonymous said...

Everybody take your money out of the bank - Every Penny - Let them bleed.

Nick said...

I strongly differ with you Keith. I would stay "in my home" if the government lowers my mortgage to $250,000 to $300,000. I bought my townhouse for $399,000 and took out $420,000 in heloc equity (the banks were calling me and sending me letters BEGGING me, literally BEGGING me to take out a heloc loan after a heloc loan!). Thus if the government buys up/pays off my heloc loans and then lowers my mortgage, then I will be more than happy to stay. As of this October 15 it will be 12 whole months of not making a mortgage payment. I went to see Richard, my mortgage representative at Chase bank this morning and he told me that I should make a payment here and there. I asked him straight up, what will happen to me if I continue to not pay and he said "well eventually we will foreclose on your townhouse". I asked "why hasn't that happened so far?" and he replied "Nick, we have way too much inventory in our books, and we can't even get rid of/sell it away and thus we won't even think about taking over another piece of property". The real estate market is crashing folks and thus banks won't repossess someone's home (why take over a falling knife and the banks know it). Sooner or later HP'ers, the government will lower all of us Fucked Borrowers mortgages to "affordable" levels.

Democracy is nothing more than mob rule. Right now in America the inmates are running the asylum. The politicians don't give a shit about you HP'ers/Fucked Savers as witness the last debate in which both candidates for VP blamed the "big greedy banks" for people losing "their homes" and not the borrowers like myself!

Nick said...

Anonymous Dan said...

Not only that, but 1/2 of those people are in homes that they can't afford anyway!

Why should *I* pay to keep a $13K/yr landscaper in a $700K home?!?!?!?!?!?!?!?!?!?!?!?!?!?!??????

The inmates are running the asylum.

Privatize the gains, socialize the losses.

Personal and social responsbility is officially dead in the U.S.A.

October 04, 2008 3:55 PM

Dan, I hope you are right. I am a big fan of privatizing the gains and socializing all of the losses. Thanks HP'ers and Fucked Savers for financing my great lifestyle.

Yesterday night my wife and a bunch of friends went to eat at an upscale Indian restaurant and then we had expensive hot choclate at Ghiralldi on Michigan Avenue (each cup of gourmet hot choclate is about $6). Then we drank the night away. I still have $80,000 in cash from my last heloc loan I took out.

Nick said...

Blogger keith said...

Homeowners generally don't struggle.

It's the homedebtors.

I wish the MSM or politicians would understand the difference.

October 04, 2008 4:40 PM

Keith, I am a STRUGGLING HOMEOWNER and I deserve to be "helped". You HP idiots, don't you get it? Don't you see where we are headed?

k.w. - Southern Ca. said...

Excellent points.

Unfortunately, we see that the needs of the wealthy are given higher priority than what would benefit the nation as a whole.


Anonymous said...
And the stupidity of it all is it's still going on! That $700 billion plus has been committed to the black hole of past sins. RATHER, it should be entirely used for infrastructure improvements and buildouts on a grand scale throughout the country. That would create millions of jobs and give people loads of income to spend.

keith said...

Remember the trolls who said ipods were selling, so everything would be fine?

Or that there were people in the restaurants? Or that the car dealer lots were full? Or that real estate never ever goes down (early HP days).

I can't remember all of them but damn, looking back, sure is funny now.

If it wasn't so sad.

Anonymous said...

"St. Petersburg Police cutting up homeless tents"...

http://tinyurl.com/42qffr


"Ghost Town"...

http://tinyurl.com/4cv3gn



I will have to remember this one.

"Feeding The Homeless"...

http://tinyurl.com/3mppzs

Anonymous said...

And to think, we were trying to warn those folks not to buy, and all they did was sneer at us.

DOPES!!!

vanilla ice said...

"Right now in America the inmates are running the asylum. "

Nick, if you're trying to piss me off it's not working.

Anonymous said...

of course they want them to stay in something politicians have said aren't worth it, so that would be one less house on the minus side of the balance sheet and will give the banks more time to figure this shit out until that person goes off running for the hills. Just like they conned these people into buying these houses they are trying to con them into staying in them with their patriotic duty to help keep the country afloat and give up an extra grand a month and stay in a home not worth the extra grand a month.

Here in California the filipino's are wanting a stop the foreclosures campaign, and want some of that 700 billion to keep them in their homes because it's only fair that the government help them (and screw everyone else). They are so used to American's just giving them everything they have issues with the government not giving them part of that bailout money. They still have more gambling to do. (now you know why the casino's are closing)Here in my hometown they are second in line when it comes to home foreclosures, behind mexicans everyone else comes 3rd,4th,5th. Absolute greed caused this problem and humbleness is what is going to end it.

Batman said...

Keep em in those underwater underperforming assets (boat anchors) so they keep coughing up those payments. How else are you going to keep them transferring their wealth up the class ladder?

It worked to enslave the third world, why not try it to enslave your own citizens?

"Let me tell ya, them guys aint dumb..."

LibVet said...

For bailout to work, housing market needs to mend

By STEVENSON JACOBS, AP

NEW YORK - Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right?

Wrong. Experts say the most important thing that needs to happen before the $700 billion bailout even has a chance of working: Home prices must stop falling. That would send a signal to banks that the worst has passed and it's safe to start doling out money again.
http://tinyurl.com/4wtvpx
------------------

Home prices must stop falling? What is going to make that happen?

No one can force people to go out and buy these overpriced houses.

Locally, buying a house in my price range is a guaranteed $50k loser. I've got cash. I am NOT buying a freaking house now, thank you very much.

Granted, those of us who read the bubble blogs were light years ahead of the pack, but now the pack has caught up with us. How can they not with the news using words like Armageddon and Great Depression?

Don't forget, the Option ARMS people haven't gone belly up yet. Don't forget that there are a lot of would-be sellers out there who haven't even put their houses up for sale yet. There is going to be a tidal wave of houses coming on the market in the next 2 years.

There is no freaking way the housing market is going to "mend".

kilgore said...

If anyone here thinks it even matters what the gov does with these loans (lowers principal, forgives interest expense, keeps market artificially high compounding the proplem ect), then please read Wikipedia's excellent definition of credit default swaps. Specifically, reread the following sentences:

- "The market for credit derivatives is so large, in many instances the amount of credit derivatives for an individual name is vastly greater than the bonds outstanding."

- "The fund still faces counter party risk if the Derivative Bank becomes insolvent and cannot honor the CDS contract."

The government will be on the hook for 10s of trillions of dollars of derivative exposure before this is all over.

We are all so fucked. All of us. Not just the home debtors. All of us. It's just getting started.

Buy Gold!!!!!

Anonymous said...

"The Federal Reserve Corporation"

"Congressman McFadden (excerpted from a speech he delivered in Congress, 1934)"...

http://tinyurl.com/4aspwm

Anonymous said...

A good friend paid $400,000 for a 3 bedroom in Chandler , Ariz. in 2006....everytime I visit her she cries.
I feel awful for her.

Joe Lunch Box said...

To all the anonymous trolls who think they won the white trash lottery with this bailout-Have you read the 451 pages of the bill? Have you even listened to any of the talking points that the MSM was hammering all this week while doing PR to insure the passage of this abomination?

Obviously not because you seem to think the $700 billion is going to be used to take over the payments on your stucco and stick shitbox way out and gone in the deep, deep exurbs of BFE.

The bailout is part of an effort to keep the value of the assests in the toxic CDOs and MBSs inflated at bubble levels. This a blatant attempt to use tax payer money to defy reality and can not work for long but make no mistake the powers that be are going to do what they have to to make sure that you keep paying your bubble level mortgage at bubble levels even though your your beloved home now has a market value hundreds of thousands of dollars less than what you owe on it.

Understand this-You will be paying your over valued mortgage until you walk away. Wall Street, now with they full faith and credit (and police powers) of the Government of the United States of America.
And if you think you can just stop paying your mortgage and live rent free until you are foreclosed on and kicked out you really are as dull witted as your posts make you seem. The mortgage payments that you are not making will be tallied , totaled, compounded and laden with punitive fees and it will essentially be the Federal Government or rather Hank Paulsen's quasi government bailout squad that will be calling to collect the past due amount. I'm sure the IRS will be able to give them collection tips that would make the guards a Gitmo look like preschool teachers.
And when you think you're really winning the game because they are taking there time foreclosing, that is just them padding the account. As long as they legally keep you on the hook the more money they will get eventually. Once they foreclose the value of your house will mark to market so they are going to prop that value up for as long as they can. Even if you walk away they are not going to be in any hurry to cut you loose they will foreclose when they have recooped their loses.

Hank Paulsen did say that they tax payers might even see a profit from this bailout. Maybe he was not lying. Maybe this is how Hank is going make a profit on that $700 billion plus. Maybe you will one day realize that you are so screwed and there is nothing you can do about it. Maybe you will realize you are the bitch in this economic prison rape.

Thanks for doing your part to insure that the investment of my tax dollars will turn a healthy profit and also for doing your part to make sure the housing bubble has well and truly burst so that in a year or two I will be buying a house at a price that is based on real world fundamentals while you will still be paying your bubble mortgage.

Thank you so very much.

Anonymous said...

Silicon Valley Dispatches:

In 4 days 3 long-time Big Time legitamate car dealers vanished overnight like the $700 billion will next week.

147 jobs - POOF! History.

Welcome to the New Depression
brought to you by

Bushco-Cheneyburton
and

THE REPUBLICAN PARTY THAT WRECKED AMERICA.

Anonymous said...

I have a cousin who purchased a home in a low income neighborhood. He would not disclose how much he paid for his house. He bought his home a few years ago. His mortgage is 2,000. a month...He cannot afford the payments.
This neighborhood 10 years ago listed homes in the 60,000 range. Can you imagine what he paid for it.

Anonymous said...

Here is southern Nj, the houses are still priced over 200,000 for a modest tear down ranch.

Anonymous said...

"...I object to the notion that underwater homedebters should bail on their obligations..."

"...why would anyone want to continue living in a home worth 60% of what they owe on it..."


The bailout extends the tax exemption on forgiven mortgage debt through 2012.

How does encouraging people to walk away encourage them to keep paying?

libvet said...

"I have a cousin who purchased a home in a low income neighborhood. He would not disclose how much he paid for his house. He bought his home a few years ago. His mortgage is 2,000. a month...He cannot afford the payments.
This neighborhood 10 years ago listed homes in the 60,000 range. Can you imagine what he paid for it."

One day soon Tony Soprano is going to be there taking out the copper pipes.

Sorry, couldn't resist.

Anonymous said...

Watching the country being sold out like a cheap syphletic whore with AIDS this week, I got so angry at my elected "leaders" Feinstein-Boxer-Pelosi-Honda that I smashed my computer mouse in a million pieces out of disgust...

Stupid. Bad tempered, I admit it.

Went to Frys' to replace it. No one would lower themselves to answer any questions about a lowly mouse. Finally found the same model. Price $27.95.

Good Bye.

Stopped at an electronics outlet store on way home. Friendly ponytailed liberal showed me where they kept the mice. A large boxful of same model. Price: $2.95 each or 2 for $5.00.

KaChing. A little windex dust removal and there you have it.

Good Buy.

Retail I predict will be the next shoe to drop. Look for many vacant buildings that can be used to house the FBorrowers and idiots that jumped on the REIC bandwagon and are now destitute. A flood of business bankruptcy is on the way.

Merry Christmas, You're FIRED!

America is a failed experiment. The patient is about to be taken off life support and the organs donated to our friends in Asia and Europe.

DIE U PIGS

Anonymous said...

If the government or the Experts
would just realize that it was a speculative and debt mania ,or a leverage mania ,than they would realize that the gambling borrowers
can't be kept in their homes .

The last 4 years of the boom was more of a "speculative leverage mania ",than the advancement of
borderline borrowers becoming homeowner who didn't have opportunity before . The industry was trying to find and dummy they could find to keep the Ponzi scheme going . This was more of a Wall Street scheme than advancing home ownership for certain ethic groups .

Anonymous said...

http://www.youtube.com/watch?v=V9mZE74QI_s

Anonymous said...

Hey Nick...

While you enjoy spending what is left of your economic ruin on upscale Indian food and high priced chocolate, those of us who care about being responsible are reluctantly preparing for the day when people like you will be crying in the streets for food.

We won't feel sorry for you then, because we will remember how you disgustingly lived it up on the backs of others.

Someday soon you will be pining for the good old days when idiots like you thought that the world was your oyster. You and the sheeple idiocracy have been living a life of illusion. You are clearly not prepared for what is coming.

Welcome to the New Great Depression.

Peter T said...

If every homedebtor who can would bail, the financial system would collapse. So, foster their pride to be slaves to the mortgage and to work hard to climb out of the hole to arrive at zero. That is good for the fat cats, but it seems to be good for us renters, too. Don't rock the boat too much, just prevent giving significant taxpayer money to the mortgage slaves.

SeattleMoose said...

http://news.yahoo.com/s/ap/20081004/ap_on_bi_ge/financial_meltdown_credit

For bailout to work, housing market needs to mend
By STEVENSON JACOBS, AP Business Writer
1 hour, 22 minutes ago

NEW YORK - Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right?
Wrong. Experts say the most important thing that needs to happen before the $700 billion bailout even has a chance of working: Home prices must stop falling. That would send a signal to banks that the worst has passed and it's safe to start doling out money again.
The problem is the lending freeze has made getting a mortgage loan tough for everyone except those with sterling credit. That means it will take several months or longer to pare down the glut of houses built when times were good — and those that have come on the market because of soaring foreclosures — before home prices start appreciating.
Housing is a critical component to the U.S. economy and by extension the availability of credit. Roughly one in eight U.S. jobs depends on housing directly or indirectly — from construction workers to bank loan officers to big brokers on Wall Street. A turnaround in housing prices would boost confidence in the wider economy and, experts hope, goad banks into lending again.

Wait, we just gave up $700B and now we find out that the $700B will not work unless housing prices stabllize?

Where was this little detail when all the bailout cheerleaders were cramming it down our throats?

This is turning into a pig chasing its tail...deeper and deeper into the mud.

Mammoth said...

Hey nick, not to inflate your ego by addressing you directly, but while you have been out livin' it up, some of us smart HP'ers have been working hard to prepare for what's coming next.

Ever read the Aesop's Fable about the Grasshopper and the Ant?

-Mammoth

tater said...

This 700 Billion dollar giveaway/bailout bill ain't going to do squat for the average Joe.

I remember all this past week, every one of these pimps pushing this bill, was hollering about how their local constituents wouldn't be able to make payroll. Now, that the bailout bill has been passed, the new lies are driveled to the sheeple by their Washington D. C. masters: This bailout bill will not help you right now, because it will take months to get the 700 Billion dollars in the market. What your govt. is not telling you, is that when the 700 Billion dollars is finally sucked up by the toxic mortgages, you won't get a dime of extra credit, because This 700 Billion dollars is just a drop in the bucket, compared to the overall financial mess that we find ourselves in. It's just sad that the sheeple thinks it will work.

The ignorant sheeple thought that the govt. was going to instantly get their money flowing from the banks. I'll give them a secret that their govt. is not telling them: There is no change to your credit predicament; forget your lines of credit magically reappearing, cause the banks ain't givin' you shit - now or in the future.

Beancounter said...

All the cards are not on the table yet, folks. I worked the US Govt as a supplier for 30 years. To me, "Keep them in their homes" means forgive the interest but "allow" the homeowner to repay the principle over 30, 40 years. The Govt doesn't care about the indiviusal's. It's called indentured slaves. I also have a hunch that the amount of any reduced principle adjustment will be collected by the USG, if any capital gain is made, later, by the homeowner selling the property. This is just like depreciation recapture. So I don't feel that bad. The homeowner will be f$%^&d even worse by the Govt. The homeowner will still be required to pay his monthly PP and have no chance to make money on his shed, at the expense of the taxpayer. Homeownership will be a shelter not an investment. Plus the traceability of the transactions will be IRS controlled so the homeowner can't escape the so called reduced deal he entered. Once the deadbeat homeowners figure this out, they will bail because they are not going to tangle with obligations to the IRS. It's worse than Mafia. I'm just extrapolating the way the gov't and tax system has behaved for the last 30 years.

As a conservative investor, I am looking forward to watching the Casey Serins of the world pucker their exit holes to the point they explode.

Dummy Action said...

I think this "Nick" guy is a fake, a charlatan.

I don't think someone who behaves like that would be able to put together a legible post, and further I don't think a person like that would read a blog like this.

He is just another HPer trying to get a rise out of us, and get us mad. I do believe there are people out there that are that stupid and behave like this, but he is just to blatant.

Nice try dude, I called you out:

BULLS&#T

Miss Goldbug said...

I believe banks didnt want to work with any homeowner on the verge of forclosure because they were waiting for the bailout to happen. When this thing goes through, I think banks will throw everyone behind in their payments out on the street.

Banks arent stupid. They know time is money- reworking a mortage, when they dont even know where it is in the pile of toxic paper to begin with. Also, why would they reduce interest, or even principle only to have the homeowner forclose anyway...it would be fruitless for both parties.

Its easier for banks to wait, get the bailout, then forclose on behind payment mortgages.

Seems logical to me.

Anonymous said...

i buy this dream house selling for 35,000 and i break even from putting my money in banks that printed up 10, 20, 30, or 100 debt dollars indistinguishable from my deposited dollar when i deposited it and that were used to compete with my deposited dollar when it went house buying or bidding over the last 17 plus years..... and competed with other holders of these debt dollars at house buyings and biddings

wings said...

I read a post something to the effect of thank you!

Thank you for being Hank Pauson's biatch. Keep paying. The IRS is coming to get you. You will be raped prison-style and the IRS will BBQ your b-lls.

Yada, yada, yada!

Tell them all to shove it and make off for Vegas, Phoenix, Albuquerque, Arlinton, Texas or whatever.

Don't worry!

Just tell the government rats: KAGUNGA! And wave a big spatula at them like a lunatic.

Anonymous said...

yep..i have noticed the extra zero added on prices for a long time myself.....

Miss Goldbug said...

Anon said:"Silicon Valley Dispatches:

In 4 days 3 long-time Big Time legitamate car dealers vanished overnight like the $700 billion will next week."



in Friday's Alameda Journal paper the front page article was Good Chevrolet closed its doors without warning laying off 64 employees.

Toyota, here on the island is next. Other car dealers in Oakland & San Leandro have closed recently as well...

A carpet/flooring family owned business around for 40 yrs. shut down in San Leandro this summer without warning. My brother told me today, a friend of his, lost his job two weeks ago when the owner of a cabinet shop in San Leandro, again without warning, told him when he came into work he was closing up shop. The owner gave my brothers friend all the tools from the business - he worked there for the past 10 years. Now, he's surviving by working small, odd jobs.

It's getting really bad, and it's going to keeping getting worse and worse.

This bailout bill is farce.

Anonymous said...

to think i thought 700 trillion might havee built a mechanical fountain of youth building machine that reversed cellular age and stregthened cellular tissue....................

Miss Goldbug said...

Anon said:"Retail I predict will be the next shoe to drop. Look for many vacant buildings that can be used to house the FBorrowers and idiots that jumped on the REIC bandwagon and are now destitute. A flood of business bankruptcy is on the way."

Agree with you. I definitely see it happening here - all over the bay area. It's getting scary.

Miss Goldbug said...

http://www.youtube.com/watch?v=V9mZE74QI_s



Going to be a lot more of these around town...

Anonymous said...

IF everyone BAILS on their mortgage and file chapter 7 , the NWO-WORLD GREEDY RICH BAKERS WOULD BE SCREWED and that my friends is the WAY WE FINALLY TAKE BACK OUR COUNTRY from the greedy rich Bankers

Tokyo boy said...

Why would the gov't start lowering people's mortgages? Are they going to pay for people's losses from dot-bomb stocks, too?

Ross said...

People who say that the $700 Billion isn't enough might not be aware that this is a line of credit we're handing over to Ol' Hank Paulson. What happens if he goes over the limit? Do we get charged late fees and have the interest rate raised.

Will he have to sit on hold with US Treasury Customer Support for an hour while he tries to get his limit raised??

How the hell we can give one man so much authority?????

i've had it said...

HP'ers, if you think this bailout was simply to allow homedebtors to refinance their underwater loans or forgive some interest, i think you are very mistaken.

This bailout is going to allow homedebters to FORGIVE the difference between the price originally paid for the house and the price the govt sets to purchase the loan balance.

THAT'S THE BAILOUT!

In fact, it's already being done by banks, but just on a small scale. The Feds already passed a bill to forgive any principle that a borrower can't pay back to the bank. They will do the same with the toxic mortgages that they purchase...but it will be on a massive scale.

And it's not limited to $700 billion...it's unlimited; it's whatever the govt. thinks it needs to spend (i.e. print money).

Why is the govt. doing all of this?

1) keep people from being homeless (although we know they'll just go rent an affordable place)
2) keep State property taxes coming in
3) keep credit markets flowing.
4) keep the economy afloat

Nick is correct...the banks may simply stop foreclosing in the near future and just wait until Paulson buys up all their stinking properties and then they'll move on and put the past behind them. The Feds will then forgive large portions of the outstanding mortgage.

It's unfortunate but that is what this bill is all about...giving homedebters huge sums in loan forgiveness so they stay in their homes.

The price floor for housing could soon be set by Paulson's asset managers, not the free market (or falling market). Yes, prices will continue to fall for the time being but once the Treasury's asset managers start the valuation process that could be the end of the major declines.

Well, that's my thought process for now. The tsunami of alt a's and option arms starting late next year could change things however.

Anonymous said...

DEFLATION. Deflation all the way down the line. Of course the banks want the home owners to stay put.

Yeeeeee....HAW.

Anonymous said...

Remember the trolls who said ipods were selling, so everything would be fine?

Don't forget the Krispy Kreme trolls...bwahahah. Man, time goes by fast. It's been what...3 years already? We, old timer HP'ers, are getting nostalgic already and this thingy is not half way through yet.

I've been all cash for 1.5 years already, waiting for a 1987 type of $hit. It's coming, haven't been wrong so far and everyone around me thinks that I'm Nostradamus.

You should see my Business Finance professor's face when I told the entire class that everyone should be investing in gold; this in 2000. Gold was what at that time, $300 bucks? Then they really get spooked when I told them that, since Bush/Cheney had won, there would be a war and everyone should invest heavily in oil until they got out. Former students still email me up to this day for advice.
C'mon, it's so predictable. Really.

eric in vegas said...

"es, prices will continue to fall for the time being but once the Treasury's asset managers start the valuation process that could be the end of the major declines."

They may be able to keep them from free falling for a short time but they can't keep it from happening long term short of passing a law. Plus, the government is going to want a huge cut of any future appreciation and most people simply won't go for it.

Towjam said...

Anonymous said...
"I object to the notion that underwater homedebters should bail on their obligations. If this were to happen the entire economy will fall far worse then you can imagine. Look what it has done already."

They are bailing in droves. It shows no signs of slowing down. Just take a drive in most areas. Here (Central FL) I see new ones pooping up all the time.
Also if it keeps going this way we will all look back at this point in time as when things weren't so bad

Anonymous said...

Vanilla Ice:""Homedebtors" has yet to enter the vocabulary and yet to even be considered a concept except for HPr's."



Wikipedia is pretty fast to pick up on things. They'll have an entry for it soon - if it's not there already.

Miss Goldbug said...

"IF everyone BAILS on their mortgage and file chapter 7 , the NWO-WORLD GREEDY RICH BAKERS WOULD BE SCREWED and that my friends is the WAY WE FINALLY TAKE BACK OUR COUNTRY from the greedy rich Bankers"


How do you figure? If everyone decided to bail on their mortgages, government will come back again to the taxpayer for more money.

The more shoes drop - the more bailouts via the taxpayer.

Miss Goldbug said...

My condo neighbor is underwater. She lost her job and car, is now going through her stuff which are in boxes. I think she will just bail...

Via Yahoo forclosures, someone 4 doors down is also in forclosure.

A struggling 'homeowner' around the corner from me is moving out. Saw the U-haul truck out front yesterday. Three other homes in trouble on the same street.

Yahoo forclosures says there's 127 of them here in Alameda, I think it's more. Easy to see who is distressed in the neighborhood. The christmas lights, dead grass, unkept property is a big red flag.

Its happening all over, even here in the bay area.

Anonymous said...

Excellent point. Even if they rework the mortgage payments to an affordable amount, why would anyone want to coninue living in a home worth 60% of what they owe on it.

October 04, 2008 5:14 PM

======

Hey there moron: the rework includes cutting the mortgage down to 60%.