Comments on: Walking away from a home http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/ Strategies and coupons to save money on groceries, clothes, restaurants and more! Sat, 31 Jul 2010 08:26:01 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Robin@ILoveAGoodBargain.com http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1857 Robin@ILoveAGoodBargain.com Mon, 06 Apr 2009 17:32:50 +0000 http://www.bargainbabe.com/?p=1882#comment-1857 a few thoughts -- Melanny, MONEY is not the root of all evil, it's the LOVE OF MONEY. Big difference. Money makes life easier and more fun. Let's give it some credit (bad pun, sorry). I, like Julia, am a professional "frugalista", and I also got caught up in the Great Real Estate Debacle of the 2000s. (The 2 are not mutually exclusive.) I was excited after my first few flips and thought the market would continue and reinvested all my profits. I admit I got a little greedy, but I was not doing it to take advantage of anyone or anything, but to make a living and to help people have beautiful places to live. Like Julia's friend, I will probably have to declare bankruptcy so that I get a fresh start. I went through a major depression when I lost everything I own, so don't all think it's about taking advantage. it was a horrible time in my life, and the consequences will be with me for a long time. I absolutely take responsibility for my decisions and now at 53, I am starting all over. I learned a lot and will certainly be more cautious next time around. But if you never take a chance you never can win, and when I am at the end I will look back at my life and be at rest that I played full out! a few thoughts — Melanny, MONEY is not the root of all evil, it’s the LOVE OF MONEY. Big difference. Money makes life easier and more fun. Let’s give it some credit (bad pun, sorry).

I, like Julia, am a professional “frugalista”, and I also got caught up in the Great Real Estate Debacle of the 2000s. (The 2 are not mutually exclusive.) I was excited after my first few flips and thought the market would continue and reinvested all my profits. I admit I got a little greedy, but I was not doing it to take advantage of anyone or anything, but to make a living and to help people have beautiful places to live. Like Julia’s friend, I will probably have to declare bankruptcy so that I get a fresh start. I went through a major depression when I lost everything I own, so don’t all think it’s about taking advantage. it was a horrible time in my life, and the consequences will be with me for a long time. I absolutely take responsibility for my decisions and now at 53, I am starting all over. I learned a lot and will certainly be more cautious next time around. But if you never take a chance you never can win, and when I am at the end I will look back at my life and be at rest that I played full out!

]]> By: Alissa http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1856 Alissa Mon, 06 Apr 2009 17:25:35 +0000 http://www.bargainbabe.com/?p=1882#comment-1856 I guess I am in a similar situation to your friend, except I paid about 1/10 of what she did for her house. At the time I bought mine, it was cheaper than rent and it seemed like a good investment, but that was nearly 8 years ago and a lot has changed including property taxes that have increased at an astounding rate and a home value that has gone in the other direction. Hard to know what the wise thing is to do in this situation. I am presently trying to work something out with the mortgage company, but I'm not sure if it makes sense or if I am going to be throwing my money away if the value of my home continues to plunge. The alternative is to move in with my parents, which isn't something I am too keen on either. One thing is for certain, these are extraordinary times. I guess I am in a similar situation to your friend, except I paid about 1/10 of what she did for her house. At the time I bought mine, it was cheaper than rent and it seemed like a good investment, but that was nearly 8 years ago and a lot has changed including property taxes that have increased at an astounding rate and a home value that has gone in the other direction.
Hard to know what the wise thing is to do in this situation. I am presently trying to work something out with the mortgage company, but I’m not sure if it makes sense or if I am going to be throwing my money away if the value of my home continues to plunge. The alternative is to move in with my parents, which isn’t something I am too keen on either. One thing is for certain, these are extraordinary times.

]]> By: Janice S. http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1850 Janice S. Mon, 06 Apr 2009 13:41:44 +0000 http://www.bargainbabe.com/?p=1882#comment-1850 I agree with Chris C. When we bought our house in 2001, while we weren't pushed to get an ARM, we were told we qualified for a loan $100,000 more than what we knew we could afford. I think sometimes people let greed get the best of them. That and the "Look at the really expensive house we have." My husband is a plumber and he goes to plenty of expensive homes where the curtains are sheets and the furniture is lawn chairs. I agree with Chris C. When we bought our house in 2001, while we weren’t pushed to get an ARM, we were told we qualified for a loan $100,000 more than what we knew we could afford. I think sometimes people let greed get the best of them. That and the “Look at the really expensive house we have.” My husband is a plumber and he goes to plenty of expensive homes where the curtains are sheets and the furniture is lawn chairs.

]]> By: Chris C. http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1804 Chris C. Sat, 04 Apr 2009 19:19:35 +0000 http://www.bargainbabe.com/?p=1882#comment-1804 I wholeheartedly agree with J Wojcik and Elaine! I also see that there is "some" responsibility on the Financial Institution's side, as well. I too purchased a home at the height of the market, in Jan. 2006, but despite the fact that the mortgage lenders told us that we could get 100% financing and a loan at about $150K more than we were comfortable getting, because they could make the payments afordable by getting us an Interest-only loan, we did not. When we argued that we couldn't aford something like that because we couldn't aford the adjusted payments - they actually tried to tell us that we should be anticipating advancing in our careers and receiving larger incomes when the loans adjust. (By the way, I lost my job in November of '08, instead of an advance in my career.) I just refused to let them tell me what the future would be and looked at things pessimistically. The problem with all these forclosed or near forclosure homes is that so many people were hyped into the Optimism! Too many people were wearing the Rose-colored-glasses! I wish that more people could take responsibility for the fact that they made a bad choice and failed to predict the future, and face the results from their short-sightedness! I wholeheartedly agree with J Wojcik and Elaine! I also see that there is “some” responsibility on the Financial Institution’s side, as well. I too purchased a home at the height of the market, in Jan. 2006, but despite the fact that the mortgage lenders told us that we could get 100% financing and a loan at about $150K more than we were comfortable getting, because they could make the payments afordable by getting us an Interest-only loan, we did not. When we argued that we couldn’t aford something like that because we couldn’t aford the adjusted payments – they actually tried to tell us that we should be anticipating advancing in our careers and receiving larger incomes when the loans adjust. (By the way, I lost my job in November of ‘08, instead of an advance in my career.) I just refused to let them tell me what the future would be and looked at things pessimistically. The problem with all these forclosed or near forclosure homes is that so many people were hyped into the Optimism! Too many people were wearing the Rose-colored-glasses!
I wish that more people could take responsibility for the fact that they made a bad choice and failed to predict the future, and face the results from their short-sightedness!

]]> By: OCNanis http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1800 OCNanis Sat, 04 Apr 2009 17:57:53 +0000 http://www.bargainbabe.com/?p=1882#comment-1800 Oh my! What a backlash BB has received. Never the less the subject matter of the article is not really being dealt with. Her friend invested in a plan to turn a profit with no money down & expected to come out a winner. She along withe many others lost. It is that simple. Don't read more into to this folks. I am sure she & her friend are perfectly aware of what would be shared on the blog & don't think BB would post her insight in regards to the situation if she hadn't verbalized it to her friend already. That is what friends do. Tell you what you need to hear even if it isn't what you want to hear. Oh my! What a backlash BB has received. Never the less the subject matter of the article is not really being dealt with. Her friend invested in a plan to turn a profit with no money down & expected to come out a winner. She along withe many others lost. It is that simple. Don’t read more into to this folks. I am sure she & her friend are perfectly aware of what would be shared on the blog & don’t think BB would post her insight in regards to the situation if she hadn’t verbalized it to her friend already. That is what friends do. Tell you what you need to hear even if it isn’t what you want to hear.

]]> By: J Wojcik http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1780 J Wojcik Sat, 04 Apr 2009 06:18:55 +0000 http://www.bargainbabe.com/?p=1882#comment-1780 I agree with Elaine. It's the responsible people who are going to get stuck with having to help foot the bill for those whose greed was more than they could afford (ie your friend and the banking system). It's a shame that the responsible people are stuck and will not be getting a bailout from the system. As usual, those who are bad get rewarded with bailouts and forgiveness of loans, etc and those who are responsible are stuck paying the bill for them! It's a good thing you did not publish your friend's name or initials. Do they realize you were talking about them? I agree with Elaine. It’s the responsible people who are going to get stuck with having to help foot the bill for those whose greed was more than they could afford (ie your friend and the banking system). It’s a shame that the responsible people are stuck and will not be getting a bailout from the system. As usual, those who are bad get rewarded with bailouts and forgiveness of loans, etc and those who are responsible are stuck paying the bill for them!

It’s a good thing you did not publish your friend’s name or initials. Do they realize you were talking about them?

]]> By: Elaine http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1779 Elaine Sat, 04 Apr 2009 05:38:46 +0000 http://www.bargainbabe.com/?p=1882#comment-1779 Somehow, the concept of working and saving your money for a down payment on a house has gone out the window. Your friend (and thousands and thousands of others), along with the lending institutions, are part of the reason our economy is in such a mess. You, me, and the other responsible ones are left to foot the bill for the self-centered, irresponsible choices your friend and others have made. We all do stupid things, but your friend had to know she was taking advantage of the "system" and went ahead and did it anyway. No sympathy here. Somehow, the concept of working and saving your money for a down payment on a house has gone out the window. Your friend (and thousands and thousands of others), along with the lending institutions, are part of the reason our economy is in such a mess. You, me, and the other responsible ones are left to foot the bill for the self-centered, irresponsible choices your friend and others have made. We all do stupid things, but your friend had to know she was taking advantage of the “system” and went ahead and did it anyway. No sympathy here.

]]> By: fm http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1775 fm Sat, 04 Apr 2009 03:38:14 +0000 http://www.bargainbabe.com/?p=1882#comment-1775 I hope your friend knows and is okay with you posting this on your blog or your friendship may be very different in the future. I hope your friend knows and is okay with you posting this on your blog or your friendship may be very different in the future.

]]> By: Roscoe PC http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1769 Roscoe PC Sat, 04 Apr 2009 00:51:42 +0000 http://www.bargainbabe.com/?p=1882#comment-1769 I personally appreciate it when my friends are honest enough to tell me when I've gone off-kilter, but are nevertheless willing to lend a helping hand when I need it. We can't assume that all BB did was castigate her friend without offering some sort of comfort, if not outright sympathy. I personally appreciate it when my friends are honest enough to tell me when I’ve gone off-kilter, but are nevertheless willing to lend a helping hand when I need it. We can’t assume that all BB did was castigate her friend without offering some sort of comfort, if not outright sympathy.

]]> By: Julie http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1764 Julie Fri, 03 Apr 2009 20:59:44 +0000 http://www.bargainbabe.com/?p=1882#comment-1764 I think it's easy to place blame on the borrowers regardless of the situation, but what about the lenders and loan officers that offered products knowing these people couldn't afford it? I'm not saying borrowers didn't make poor decisions, but they aren't the only party involved here. It's not as easy as everyone thinks to contact the bank and have the loan modified. Millions have mortgage servicers that make more $$ when borrowers are late and they don't want to help. Then there is the brilliant product created by greed: bundling subprime mortgages into investment bonds. Try getting a loan modification then. It doesn't happen. Borrowers got excited about the inflated housing market and made poor decisions because crappy loan products were available, does this mean they are trash and not worth compassion? I don't think so. I think it’s easy to place blame on the borrowers regardless of the situation, but what about the lenders and loan officers that offered products knowing these people couldn’t afford it? I’m not saying borrowers didn’t make poor decisions, but they aren’t the only party involved here.

It’s not as easy as everyone thinks to contact the bank and have the loan modified. Millions have mortgage servicers that make more $$ when borrowers are late and they don’t want to help. Then there is the brilliant product created by greed: bundling subprime mortgages into investment bonds. Try getting a loan modification then. It doesn’t happen.

Borrowers got excited about the inflated housing market and made poor decisions because crappy loan products were available, does this mean they are trash and not worth compassion? I don’t think so.

]]> By: Marla Ellis http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1760 Marla Ellis Fri, 03 Apr 2009 19:42:25 +0000 http://www.bargainbabe.com/?p=1882#comment-1760 I have to agree with Mellany ~ I wouldn't want to be a friend of yours. Yes, she did something foolish, but in this time and situation, times are tough and your loss of sympathy for your friend isn't right. I have to agree with Mellany ~ I wouldn’t want to be a friend of yours. Yes, she did something foolish, but in this time and situation, times are tough and your loss of sympathy for your friend isn’t right.

]]> By: Roscoe PC http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1759 Roscoe PC Fri, 03 Apr 2009 19:20:16 +0000 http://www.bargainbabe.com/?p=1882#comment-1759 Mellany, It doesn't sound like BB's friend's situation is anything like yours. The friend bought more house than she could afford, gambled with a foolish bank's money, lost, and now everyone has to pay for her poor decision. No names were mentioned to protect the "innocent", so I see no harm in highlighting the case. Just my $.02. Mellany,

It doesn’t sound like BB’s friend’s situation is anything like yours. The friend bought more house than she could afford, gambled with a foolish bank’s money, lost, and now everyone has to pay for her poor decision. No names were mentioned to protect the “innocent”, so I see no harm in highlighting the case.

Just my $.02.

]]> By: Skip http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1758 Skip Fri, 03 Apr 2009 18:59:17 +0000 http://www.bargainbabe.com/?p=1882#comment-1758 Um... shouldn't your friend make some effort to contact her bank and set something up, instead of just stopping payment and *hoping* that the bank will contact them with a deal?? At the very least, her contacting them might prevent a ding from showing up on their credit reports for non-payment. Um… shouldn’t your friend make some effort to contact her bank and set something up, instead of just stopping payment and *hoping* that the bank will contact them with a deal?? At the very least, her contacting them might prevent a ding from showing up on their credit reports for non-payment.

]]> By: Diana http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1756 Diana Fri, 03 Apr 2009 18:30:29 +0000 http://www.bargainbabe.com/?p=1882#comment-1756 Sorry, but I have little sympathy for people who make such stupid, uninformed decisions. Interest only! No down payment? Too bad she didn't talk to her money-savvy friend, you, before she got into this. Sorry, but I have little sympathy for people who make such stupid, uninformed decisions. Interest only! No down payment? Too bad she didn’t talk to her money-savvy friend, you, before she got into this.

]]> By: Roscoe PC http://www.bargainbabe.com/2009/04/03/walking-away-from-a-home/comment-page-1/#comment-1754 Roscoe PC Fri, 03 Apr 2009 18:21:59 +0000 http://www.bargainbabe.com/?p=1882#comment-1754 Also realize that everyone will be picking up the tab if your friend ditches her house. You and hubby chose to be conservative (some would say _responsible_) with your choices, while your friend gambled and lost. The American taxpayers, who are helping to keep our banking and credit system afloat through this debacle, are subsidizing the bad choices of family, friends, and strangers everywhere. Yay! Also realize that everyone will be picking up the tab if your friend ditches her house. You and hubby chose to be conservative (some would say _responsible_) with your choices, while your friend gambled and lost. The American taxpayers, who are helping to keep our banking and credit system afloat through this debacle, are subsidizing the bad choices of family, friends, and strangers everywhere. Yay!

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