In general, “homeowners” of modest means who walk away from their housing debt are viewed as dead beats while the wealthy that do the same are presumed to be making a good financial decision.
In this way, a person’s prior economic status appears to influence the way others judge their actions and ultimately likely contributes to shaping the defaulters sense of their decision.
The wealthy likely, rationally, believe that walking away from a debt laden deflated home is the best financial choice that they could make while individuals of more modest means face more scrutiny and pressure to make good on their debts.
Meanwhile, in states in which non-recourse loans are the standard, mortgage debt is simply secured with the collateral of the home so while the banking industry and others with financial interests attempt to brand those that walk away from their loans (particularly those that can afford to continue paying) as “ruthless”, the terms of the agreement allow for the debtor to turn over the keys.
By contrast, consider what would be the outcome should the circumstances be reversed.
If economic conditions were strong and home prices were rising steadily and a homeowner were to experience some form of hardship leading to a loss of income and delinquency of their mortgage debt (even as little as 5% or 10% of debt remaining on the loan) the bank would eventually act in their best financial interest and take the home, stripping the homeowner of whatever equity accrued for in property... talk about ruthless.
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Stock Market is heading up, up, up!!! 159 pts and higher so far today. Get in and ride this next Bull Wave!!
ReplyDeletestock market is up to lower highs and lower lows, get out now and ride your wave, dont ride the wave of greedy and soon to be big losers.
ReplyDelete8:38 Quite funny that you want to be the first poster on each post. You're the first guy in the casino that stays the full night, then walks out in the morning bankrupt and completely broke with creditors and loan sharks waiting for him at his tent.
ReplyDeleteThe only way to put more Americans into a house IS to lower the cost of the house. Make them a penny. The whole scheme is revealed to be a lending scheme to benefit the BANKS and SPECULATORS. It blew up. Bankers are much easier to keep on food stamps. Let the banks collapse.
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