People cannot manage their own finances and overextend themselves

David Simons March 20, 2013 Great. First these people cannot manage their own finances and overextend themselves. Then they go bankrupt. Then I/We pay. THEN they go out and try again. And why are rates low? Because of us! What do we get? NOTHING. Just the satisfaction of keeping our commitments. 1 Reply

Perv Lil March 20, 2013 seems like this couple listened to another snake oil salesman, I mean realtor. 1 Reply

MrRight1 March 20, 2013 Why does the last guy have a 730 credit score less than 2 years after a foreclosure? 1 Reply

ned March 20, 2013 I know some people myself who had problems like those above, but each and every case, when you got right down to it, their mortgage was unsustainable from the get-go. As you read about the vast numbers of "boomerang buyers" encouraged by real estate brokers (like those mentioned above) to walk away from their homes, you have to realize that most are using their "one-time" life altering event as an avenue to dump their commitment, than get into another home. That is called a strategic default and articles such as this legitimize if not outright encourage that tactic. In the end, our economy needs homeowners to succeed, and thu,s most who defaulted on crappy loans will be forgiven at some point. But let`s not glorify them along the way at the expense of those who exercised common sense. 1 Reply

Dain March 20, 2013 Yeah, two years seems way to short a time if you went into foreclosure. But what it doesn`t mention in the article is that the FHA loan at 4% after three years is with just 3% down. INSANITY !! Wasn`t cheap and easy money with next to nothing down what got us into this mess in the first place. And the FHA is about to request a multi billion dollar bailout because of a sharp increase in defaults. Will we never learn? 1 Reply

Health1au March 20, 2013 Do you know how to read this: It says, "The Dumb Money Has Arrived." The smart money was here in 2009-2010 and got work done. The smart money is on the sell side now. 1 Reply

Health1au March 20, 2013 Yup. They`re back and they`re dragging their knuckles behind them. There`s no (new) housing bubble. Noooooo.... buy now or you`ll be priced out forever!! There`s never been a better time to buy!! Drive until you qualify!! BUY! BUY! BUY! Just sign here. Did you read all 118 pages? Sure you did... 1 Reply

Tom Evans March 20, 2013 It turns out that the people who bought homes at the peak of the bubble were playing with house money. If their property value had gone up great. If it goes down walk away, stick the mortgage holder with the loss and buy back a few years later when the prices have bottomed out. An almost no lose situation. So how is it that these evil bankers were taking advantage of people? The moral of the story is that when buying a home only make the minimum down payment. 2 Reply

rat13 Tom Evans March 20, 2013 "So how is it that these evil bankers were taking advantage of people" By falsely inflating a supply and demand market, by introducing $$$ into the hands of those who should have never been allowed to borrow - all in the spirit of making big bucks from origination. To h*ll with underwriting standards. That simple. 3 1 Reply

sunny5280 rat13 March 20, 2013 Is that what they`re doing now by offering financing for these people? 0 Reply

rat13 sunny5280 March 20, 2013 What do you think ? 0 Reply

sunny5280 rat13 March 20, 2013 You failed to answer my question. 0 Reply

rat13 sunny5280 March 20, 2013 More accurately, I chose - as always - to ignore it. 0 Reply

sunny5280 rat13 March 20, 2013 No, you did not ignore it. Ignoring it would be not responding to it. 0 Reply

BravoEcho240 Tom Evans March 20, 2013 Playing with "other peoples money." Will always have far reaching consequences. This is far from over. 0 Reply

Tlmccl March 20, 2013 Everyone deserves a place to live, whether one can "afford it" or not is irrelevant.. 0 3 Reply

Perv Lil Tlmccl March 20, 2013 how about I move into your house and take your bedroom. Why? Because it is the only right thing to do. 0 Reply

Mandor Tlmccl March 20, 2013 Me from twenty years ago would have agreed with you. Today, i`m older, with more gray than brown in my beard, and gray creeping into my hair. A lot less idealistic, a lot more jaded, having been taught some very nasty lessons by life. Perhaps everyone does deserve a place to live. But since this is the real world and not Lennon`s "Imagine", you`d better be busting your rump to make sure you can make your payments, whether they are rent or a mortgage. Some few of us will choose to donate what we can to those charities that we think do good, but it will never in a million years meet the need. So get working to make sure you don`t drain the charity resources away from someone else who truly does need them. 0 Reply

Scott L Tlmccl March 20, 2013 Well the problem is, they can`t just go live of the land and live in a cave anymore, Society does not allow that.... Perhaps you would prefer they all just eat a bullet, so they aren`t a burden for you? 0 Reply

JFCanton Scott L March 20, 2013 Not literally. Our standards don`t need to be as high as they are, though---not everyone needs their own place, for one thing. 0 Reply

Edward Ayres March 20, 2013 Jesus, after reading the judgmental and harsh comments in this thread it is easy to see why the financial class is so reviled. 0 1 Reply

BravoEcho240 Edward Ayres March 20, 2013 So wait,...which financial class are you speaking of? The class that created this mess or the class paying to clean it up??? 0 Reply

BravoEcho240 Edward Ayres March 20, 2013 It `tis what it is, brah. 0 Reply

March 14, 2013
One would think that if a lender is stupid enough to trust a credit dead beat a second time, well then the lender is taking all the risk. And, that naive lender will absorb all the losses when the dead beat defaults again. Ah, but thanks to Mr. Reward the Biggest Dead Beats of Our Society in Chief, not so. You the middle class taxpayer (The only people who have, now will, and forever more pay the burden of gov`t spending.) are the one`s that take the hit: 1) You pay outrageous taxes up front to fund all those "Mortgage Adjustment/Bailout programs". 2) You get slammed with an ever depreciating dollar, because the US gov`t has been printing over $16T in the last 50 years. Because, the gov`t cannot afford the luxury of these vote buying entitlements. So every staple you go to buy, becomes more expensive by the day. Yet, your pay check doesn`t keep up. 3) By moronically voting for these incumbents, election after election, you have guaranteed that your children will have a worst future than you. How noble of you. 0 Reply

Hard Little Machine
March 14, 2013
In two years 75-80% will go bust again. Bank on it. 0 Reply

Yen Whit
March 14, 2013
i`m one year into a 20 year mortgage fixed @ 3.99% however this mortgage initiated in 2005 with an ARM adjusted annually after 3 years at 6.875%...currently underwater owing close to 100 gees when the neighbors to my right, left, and immediately living across the street from me walked away. The homes (2 of them) sold for 13 gees and 22 gees respectively. Boy do i idolize this couple...silly of me not to take the plunge 0 Reply

rbuckfly1 Yen Whit
March 16, 2013
Take the plunge? You mean walk away? You bought it, you pay for it is what I say. No matter who walked away from their responsibilities, it`s good you hang in there. 0 Reply

March 13, 2013
I read comments and to me the issue is just business. If the system allows someone to foreclose and get loan in tow or three years then a wise business decision is to do it. Now do I understand people getting mad at the policy makers on how long one should wait YES. That being said someone who was foreclosed on and the system allows you to purchase again it makes good business sense for those who choose to do that. Opinions on right or wrong do not matter. Contact your policy makers and tell them your thoughts. John 0 Reply

Nathan Phoenix
March 13, 2013
All this does is make me feel like I made a huge mistake by "doing the right thing" and continuing to pay on a house that lost 60% of it`s value. If I`d walked away I could be getting a new house right now! 0 Reply

rbuckfly1 Nathan Phoenix
March 16, 2013
You DID do the right thing. You bought it, no matter what the value does. 0 Reply

comoncents7 March 12, 2013 Here is my plan and let me know what you think. And I`m dead serious. I bought a house in Florida six months ago, my payment is 1500/mo. I`m thinking about stopping making payments, you can live in your home for about three years in florida before you are evicted. I can save the 1,500/mo or 18,000/yr, which would be about $54,000 (nice little chunk of change). I might put this money in an off shore account or something to avoid big brother gettin their hands on it. The house is under my credit only so I can always get another mortgage under my wifes credit ( we r both nurses and make about the same money). So I wouldn`t have to even wait the 3 years. If it goes well I`ll probably due the same thing to her credit and then we will have $108,000 cash money. My credit score right now is about 780 so I figure heck I probably won`t even drop out of the 700`s. Someone please tell me where I`m going wrong here. 0 Reply

rbuckfly1 comoncents7
March 16, 2013
That`s called, "being a thief". You bought it, pay for it. Your responsibility no matter what. 0 Reply

zzbbe comoncents7 March 12, 2013 You don`t know right from wrong? It`s wrong to not pay your debts. But you will be doing to the banks what they are doing to you. It`s still wrong. 0 Reply

comoncents7 zzbbe March 12, 2013 I worked for Bank of America for 7 years, wrong isn`t in their vocabulary. It`s what is legal or illegal. Work the system or it will work you. 1 Reply

Drunk Richard March 12, 2013 This is ridiculous - maybe I should just walk away from my house and rent for a couple years 0 Reply

rbuckfly1 Drunk Richard
March 16, 2013
Again, you bought it, pay for it. Be a f`n grownup. 0 Reply

Toodle68 March 12, 2013 If you have the money to buy a new house, then you should be putting that money to pay off past debt associated with defaulting on the house. 0 Reply

lindseymori March 20, 2013 2 years after a foreclosure and you can go out and buy another house? Well, that`s just great. If you happen to buy at the top of the market, just stop making payments and buy your own house back after a few years at half the price. The taxpayers will pay for it. 0 Reply

sc2pilot lindseymori March 12, 2013 No kidding. Someone who makes such poor financial judgments should be banned from borrowing any money where there is a risk that the taxpayers might have to bail them out. That means no government guarantees for loans to prior bailout recipients. 1 Reply

YoJoeNoMo sc2pilot March 12, 2013 The same should go for the banks that lowered their underwriting standards by require little or no down payments, stated income loans and very low debt to income ratios. Have the banks paid for this bailout yet? Not even close. They paid $billions, but were responsible for $trillions in damages. 0 Reply

luckysteg March 20, 2013 I want to see an honest article on this whole fiasco. Everyone has extenuating problems. Most of these problems are self inflicted. More than half these people had a night on the town for free. I want an article to show what these people spent their money on. Look at this picture of this couple. Night on the town. I guaranteed they made out. Why not have an article that shows the real story. My brother in law for example. He squatted in a house for over 2 years. Looks like they will knock 400k off what he owes. He took all the equity out of his house to buy stuff. Didn`t have to give it back. Now price is lower and he is getting bailed out. Now he has plenty of money and is buying more stuff. Whats sick is we put up with this crap as if its standard behavior and its ok??? 0 Reply

Robert_Ore March 20, 2013 I`ll know better next time. Lesson learned. Next time, I`ll purchase the largest house I cannot afford, HELOC the driveway full of new automobiles, a boat, flat screen in every room, and vacations every year. Stop paying the mortgage and pocket the cash for the 3+ years it takes to foreclose, wait three years and purchase someone else`s foreclosure for half the cost of my original home with the cash I saved from not paying my first mortage. Moral Hazard anyone?? 0 Reply

baum33 Robert_Ore March 20, 2013 If it`s legal, then that`s all that matters. 1 Reply

iledolp March 20, 2013 Is that colorado? 0 Reply

MrRight1 March 20, 2013 Try renting or putting more money down next time. 0 Reply

capjack March 20, 2013 Look honey! Our pictures are on CNN!!..............As deadbeats. DOH!!! 0 Reply

Tlmccl March 20, 2013 When banks bundled mortgages backed securities and sold them on the world market and lost and we the people bailed them out, that`s called business. But, when my house loses value to the point that I`ll never make up my investment I`m called a deadbeat? Please.... 0 Reply

Tom Evans Tlmccl March 20, 2013 The banks paid back the money lent to them by the taxpayers. Do these people who are walking away from their mortgages plan to repay the banks for their loss? If not then you cannot compare the two situations. 1 Reply

Perv Lil Tlmccl March 20, 2013 that`s actually a form of quasi-socialism. 0 Reply

Mandor Tlmccl March 20, 2013 − Homes are not an investment, not unless you have enough money lying around to buy several at once. Whoever told you they were an investment lied, or at least misrepresented it horribly. Homes are only an investment in the sense that once you own them you no longer have to pay anyone rent. If you were looking to buy and flip, buy and flip, then you were conned. But as all marks of a con like to forget, it takes TWO for a con-man to work his schtick. Someone has to be greedy enough to fall prey to the get-rich-quick spiel.

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People cannot manage their own finances and overextend themselves

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