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.

A HousingPANIC message to the failed Housing Gamblers of America: You made your bet, you lost, now send in the keys and run

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!

At this point in the housing crash, HP recommends everyone see "The Pursuit of Happyness"

Just read Casey Serin's latest post (he's alive) to get a glimpse how tough it's gonna get on a personal level for millions of people during the crash.

I also would like to point HP'ers to our official charity, the Denver Rescue Mission, which helps the homeless in foreclosure-central Denver Colorado. Please think about giving, even if it's just a couple of bucks.

The housing crash is here folks. There's no denying it. Lives will be ruined. Families will be torn apart. Crime will soar. The divorce rate will go through the roof. Bankruptcy will become a way of life. Neighborhoods will be decimated.

And the builders, mortgage brokers, bankers and realtors got paid all along the way. Never forget that.

Time for a homebuilder dead pool? "It's only a matter of time"

Any nominations?

I loved the website fuc&edcompany during the dot-com collapse. Time for someone to start one for the REIC collapse, even though mortgageimplode is doing a great job of it on the lender side.

The collapse of the subprime mortgage market may push some big U.S. homebuilders toward Chapter 11 beginning next year, according to bankruptcy advisers and lawyers who specialize in the real estate industry.

The weakest publicly held builders are staying out of bankruptcy by relying on the profits they made when sales boomed and on the public debt they sold in those years, said Ronald Greenspan, a lawyer and financial adviser to the creditors of four bankrupt subprime mortgage lenders. Homebuilders issued $3.6 billion in public debt in 2005 and 2006, though only $600 million of that comes due this year, Greenspan said.

``There is no sword over the industry's head yet,'' said Greenspan today at a conference of the American Bankruptcy Institute in Washington. ``That doesn't mean the industry is not wounded. Instead, the breaking point could come in 2008 or 2009.''

None of the major, publicly traded homebuilders have declared bankruptcy, though there are signs many are in financial trouble, Greenspan said, declining to name specific companies. The value of shareholder's equity for some companies equals or exceeds the value of the undeveloped land the companies have under contract, he said. As the housing downturn continues, that land will fall in value.

``You are going to see the smaller companies get bit earlier,'' Bruck said. By next year, or the year after, some of the larger companies will be forced to restructure as the housing crunch continues, he said.

``It's only a matter of time,'' Bruck said.