This is the Mother of All Moral Hazard.
It makes zero financial sense to pay your mortgage in America today.
Wow.
Seriously, it makes ZERO financial sense to pay your mortgage.
But be careful homedebtors. You're likely even better off not paying, but then when they finally get around to foreclosing, just turn in the keys. Because their new terms may look better, but they're probably not. You'll still owe way more on your home than it's worth.
Read the fine print this time. And the bank is not your friend. They just want you to keep paying on your debt bomb, some how, some way.
JPMorgan will modify troubled WaMu home loans
People falling behind on Washington Mutual mortgage payments won a three-month reprieve on Thursday, when WaMu owner JPMorgan Chase said it will modify terms on an estimated $70 billion in loans to 400,000 families over the next two years.
People falling behind on Washington Mutual mortgage payments won a three-month reprieve Thursday, when WaMu owner JPMorgan Chase said it will modify terms on an estimated $70 billion in loans to 400,000 families over the next two years.
The New York-based bank, which bought WaMu after the Seattle thrift failed last month, will delay foreclosures for 90 days while it rolls out a wide-ranging effort to lower interest rates or postpone principal payments for eligible borrowers.
November 01, 2008
With banks lowering interest rates and modifying terms, plus all the government loot to come, why would ANY person in America pay their mortgage bill?
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10 comments:
That's why I don't have a mortgage. Mortgages are for suckers.
Keith,
Why aren't you linking to articles like this from Naomi Klein?
http://tinyurl.com/58bupe
Well, HP is about over, anyway.
Hey HP'ers/Fucked Savers, I told you time and again and again that this would happen! My mortgage will soon be lowered and my credit card debt too. You HP'ers are so screwed! I am laughing my ass off.
If you are still paying your mortgage, then I applaud you for doing the right thing. You should be commended. Because people like me need people like you. Thanks a bunch HP'ers and Fucked Savers.
I'm laughing, cackling, shaking and trembling on the ground in joy.
Ha, ha! Yay!
See my winglets flap furiously fast and friendly at the free-form free fall from the farthest reaches of fiscal sanity.
I writhe blithely in opulent morning dew drops and bathe in the first lambent rays of golden dawn sunrays...for free!
Who needs a mortgage? The communists and their fellow traveling freeloaders like B. Hussein Obama the crypto Marxist Muslim?
America is so on the precipice...
Kagunga!
"Frank@Scottsdale-Sucks.com said...
That's why I don't have a mortgage. Mortgages are for suckers.
November 01, 2008 10:06 AM"
The cuckoo clock bird emerges. How was house arrest?
sweet my first is wamu second chase...
Nick:
Do you really think that the bankers aren't going to screw you too?
Do you think that when your mortgage gets "modified", it won't be to the banks' advantage, just like everything else so far has been to the banks' advantage?
Keep thinking that, because you'll get bent over worse than anyone.
Remember, the government didn't end up buying most of the MBS: the "bailout" is sending most of the money directly to the banks, who still hold them -- or are scooping them up for pennies on the dollar from the suckers they sold them to.
Here's what I bet will happen: since you can't or won't pay, your loan will get "modified" to a lower principal and lower interest rate...and made into a recourse loan that is not dischargable with the house sale- just like student loans.
You won't have a choice whether to pay it or not. Look forward to carrying that debt for the rest of your life.
Just like the bank "bailout", this homeowner "bailout" will get rammed through very quickly with no discussion. Obama is in their pocket just as much as the Repubs.
Better make that short sale quickly.
yea, aren't they being such nice guys ;)
beware. it is probably better just to turn the keys in and walk away.
What is wrong with the existing house.
http://sfbay.craigslist.org/
forums/?ID=106505929
i might join the rest of you and give my place back to the bank and buy a new one. this is a sick real estate market.
Anonymous Anonymous said...
Nick:
Do you really think that the bankers aren't going to screw you too?
Do you think that when your mortgage gets "modified", it won't be to the banks' advantage, just like everything else so far has been to the banks' advantage?
Keep thinking that, because you'll get bent over worse than anyone.
Remember, the government didn't end up buying most of the MBS: the "bailout" is sending most of the money directly to the banks, who still hold them -- or are scooping them up for pennies on the dollar from the suckers they sold them to.
Here's what I bet will happen: since you can't or won't pay, your loan will get "modified" to a lower principal and lower interest rate...and made into a recourse loan that is not dischargable with the house sale- just like student loans.
You won't have a choice whether to pay it or not. Look forward to carrying that debt for the rest of your life.
Just like the bank "bailout", this homeowner "bailout" will get rammed through very quickly with no discussion. Obama is in their pocket just as much as the Repubs.
Better make that short sale quickly.
November 02, 2008 2:06 AM
Anonymous Anonymous said...
yea, aren't they being such nice guys ;)
beware. it is probably better just to turn the keys in and walk away.
November 02, 2008 2:44 AM
Do you really think the government will allow the housing market to deflate? Of course not. It is against their interests. Thus the government will do whatever it takes (including destroying the wealth of Fucked Savers and creating hyper-inflation) to reach their end goal. The government will then bail out credit card debt and student loan debt. Book it!!!!
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