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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What do you make of this?
I wonder what she will do when she gets a 1099 and owes income taxes for the entire loan amount that she walked away from
yes- this happens
and since they are married- they both will both be responsible for it
trust me- she will pay for this one way or the other
I doubt she will be able to pull this off
but just the thought of attempting it makes me sick- she should spend her time trying to figure out how to get out of this situation with out committing fraud- it can be done- there are other legit ways
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Posted 4/12/10 12:25 PM  |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: What do you make of this?
Posted by Tilde
Posted by MrsFlatbread
for people who have legitimate hardship, it is is understandable, but just b/c you don't want to pay...is just ridiculous....
I understand legitimate hardship but there are other ways to go about it. My parents had a mortgage they could afford.
Then, my dad got laid off.
Then, he could only find an entry level position at the airport.
So, they couldn't afford their mortgage any more. But they did what they could. They SACRIFICED and my dad has never been late on a single payment, something he takes great pride in.
And when they couldn't do it anymore - they looked into selling and starting over. DH and I bought the house instead but there was NEVER though of defaulting or any other scheme. And even though it turned out the way it did, I am so proud that my dad kept that house for 40+ years honestly, and with integrity!
Just playing devils advocate here-what if your family didn;t have that option? What is your parents had no children, no one in a position to do that for them. They could not afford it, and could not sell it since even if they did, they would owe more that they could get? What then? The OP's post is not a good example but there are people who are stuck in the position I described above with no way out. I have a two friends going through this right now. DH's laid off and reduced salary. Can't afford the mortgage anymore. One is in modification process. The other is doing a short sale...
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| Posted 4/12/10 12:36 PM |
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MC09
arrrghhh!!!!
Member since 2/09 5674 total posts
Name:
Me speaks pirate!
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Re: What do you make of this?
Posted by Tilde
I understand legitimate hardship but there are other ways to go about it. My parents had a mortgage they could afford.
Then, my dad got laid off.
Then, he could only find an entry level position at the airport.
So, they couldn't afford their mortgage any more. But they did what they could. They SACRIFICED and my dad has never been late on a single payment, something he takes great pride in.
And when they couldn't do it anymore - they looked into selling and starting over. DH and I bought the house instead but there was NEVER though of defaulting or any other scheme. And even though it turned out the way it did, I am so proud that my dad kept that house for 40+ years honestly, and with integrity!
Thank you Tilde! I couldn't agree more!
it's sad and disgraceful that some people don't feel like they have to work for the things they have... that they are just entitled to it
Message edited 4/12/2010 1:11:46 PM.
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| Posted 4/12/10 12:39 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: What do you make of this?
Posted by Beth
I wonder what she will do when she gets a 1099 and owes income taxes for the entire loan amount that she walked away from
I would imagine back property taxes too?
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| Posted 4/12/10 1:12 PM |
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GioiaMia
Let's Go Rangers!
Member since 1/07 14818 total posts
Name:
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Re: What do you make of this?
Posted by DRMom
Posted by Tilde
Posted by MrsFlatbread
for people who have legitimate hardship, it is is understandable, but just b/c you don't want to pay...is just ridiculous....
I understand legitimate hardship but there are other ways to go about it. My parents had a mortgage they could afford.
Then, my dad got laid off.
Then, he could only find an entry level position at the airport.
So, they couldn't afford their mortgage any more. But they did what they could. They SACRIFICED and my dad has never been late on a single payment, something he takes great pride in.
And when they couldn't do it anymore - they looked into selling and starting over. DH and I bought the house instead but there was NEVER though of defaulting or any other scheme. And even though it turned out the way it did, I am so proud that my dad kept that house for 40+ years honestly, and with integrity!
Just playing devils advocate here-what if your family didn;t have that option? What is your parents had no children, no one in a position to do that for them. They could not afford it, and could not sell it since even if they did, they would owe more that they could get? What then? The OP's post is not a good example but there are people who are stuck in the position I described above with no way out. I have a two friends going through this right now. DH's laid off and reduced salary. Can't afford the mortgage anymore. One is in modification process. The other is doing a short sale...
My parents were WAY into their mortgage at this point. So they could definitely sell, pay back the remainder of the mortgage and get something small.
I understand that people are in terrible positions right now. . . I don't think that scheming is ever the answer - it is just not how I would want to live.
Trust me, I have family members that are stuck in houses that they can't sell without taking a huge loss and they are barely making it - its a sad situation.
Message edited 4/12/2010 1:19:29 PM.
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| Posted 4/12/10 1:18 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What do you make of this?
Posted by Erica
Posted by Beth
I wonder what she will do when she gets a 1099 and owes income taxes for the entire loan amount that she walked away from
I would imagine back property taxes too?
yep- the bank will pay them- but then they will go after her
it's really not a cut and dry and the OP is making it out to be
it will make a huge mess out of your life- for years to come
also- once your house hits foreclosure- ALL YOU CREDIT CARDS WILL BE CANCELD-
if you really can't afford it- that's one thing but to put yourself in this situation- it will end up costing you way more in the end
I happen to know someone that is in this situation and he is even being sued by the HOA- he also thinks he will be able to buy another house soon- which is laughable
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| Posted 4/12/10 1:30 PM |
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Mrs007
Im obsessed w my lil man!
Member since 3/09 2528 total posts
Name:
K
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Re: What do you make of this?
Posted by Beth
but just the thought of attempting it makes me sick- she should spend her time trying to figure out how to get out of this situation with out committing fraud- it can be done- there are other legit ways
I know people who do this with EVERYTHING in their life. Credit cards, bank accounts, etc. And then they blame the banks for being the bad guys. No one told you to buy that house well out of your price range, or to max out 15 credit cards on unnecessary things. I really dont get it.
I used to work in foreclosures and some of the stories from some of the people were heartbreaking. The sad stories were a very small percentage of the houses we had in foreclosure.
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| Posted 4/12/10 1:36 PM |
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LeShellem
A new beginning
Member since 2/07 3600 total posts
Name:
LeShelle
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Re: What do you make of this?
Dh told me about his coworker who did this only he stopped paying his mortgage and amex card for six months. He then did call to say he couldn't make the mortgage and the refinance for him a lower amount. He did the same with his amex bil. Owed 20K and negotiated it down to owing only 10K, well he paid it outright because he wasn't paying his mortgage or amex bill. So his credit isn't great but reparable, he has money in the bank and he's able to comfortably pay his mortgage.
I personally would never do it, but I can understand why some people do do it. You really never know people's situation. Do people scam, absolutely but some people have no choice. We really don't know what the OP friend's situation really is.
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| Posted 4/12/10 1:50 PM |
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Annie91606
Brotherly love
Member since 12/07 1816 total posts
Name:
Anne
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Re: What do you make of this?
ITA with post of these posts.
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| Posted 4/12/10 1:58 PM |
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Annie91606
Brotherly love
Member since 12/07 1816 total posts
Name:
Anne
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Re: What do you make of this?
Posted by lululu
Posted by eddiesmommy
at the risk of being flamed for being honest.....this whole mortgage bail out thing and people like this PISS me OFF!
Its one thing if they lose their jobs, have some medical hardship and cant pay....I get that, and it happens, always has.
Its the new, lets bailout everyone who bought a house they couldnt afford. Who signed up for an ARM, and then went the rate went up and they couldnt afford it, they defaulted. When everyone was so obsessed with McMansions and bought homes they couldnt afford.
What ever happened to personal accountability. YOU took out the mortgage....YOU are responsible for it. I honestly, dont care what your bank told you, its your mortgage, your home, your money and YOUR responsibility to work out all the numbers and make sure you can afford it. I dont care that mortgage companies gave people mortgages who shouldnt have had one in the first place......these people HAD to know they were financially unfit to buy a home.
I bought during the bubble and my home is now worth SIGNIFICANTLY less than what we paid for it. Oh well......at least we took personal responsibility when we were buying it in the first place and ONLY bought a home we could afford. We didnt over extend ourselves. Could we take the easy way out and default just for the hell of it.....so we can take advantage of the burst and upgrade....we could. However, we WONT.
We bought a home we could afford, we were eligible for a traditional (not subprime mortgage) and thats what we did. We are responsible and will continue to be.
It p#sses me off to no end, that we the responsible home owners have to shoulder the burden for those who didnt have a pot to pee in but bought a house anyway.
Our house is worth less that it was when we bought, like I said, but you know what.....thats the housing market. It happens, suck it up and be responsible.
If I was as good of a write as you are, I could have written this word for word.
The bottom line is that people who do things like this are STEALING a major amount of money and they should be prosecuted.
EddiesMommy- your post was one of the best I have ever seen on LIF- and I agree with it word for word.
I also agree that what this person wants to do is a total disgrace. I equate it to the pieces of trash who commit insurance fraud or collect disability when they are perfectly capable of working. It hurts the rest of us who choose to live our lives in a honest fashion- and take our lumps when we make a mistake!
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| Posted 4/12/10 2:05 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: What do you make of this?
Posted by Erica
eh - I don't know about how righteous Americans were in the past. Robber Barons did worse.
of course, the only problem is these days everyone aspires to be a robber baron.
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| Posted 4/12/10 2:07 PM |
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CkGm
They get so big, so fast :(
Member since 5/05 13848 total posts
Name:
Christine
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Re: What do you make of this?
Posted by BJandDan
Posted by KLSbear
Posted by Christine
I think it's complete and utter BS. They CHOSE to buy a house at the price they bought it at and AGREED to make these payments. Shame on them.
I agree with this - shame on her. On top of it, your friend is an selfish, irresponsible idiot that doesn't care a bit about anyone but her self-centered little a$$. She made a commitment to her mortgage and now because she can't afford what she purchased she's screwing the lender and ruining her credit because it suits her selfish needs and she's screwing her neighbors and the rest of LI by adding to the foreclosures. If her DH leaves her or dies she's SOL with ruined credit and she'd deserve what she gets.
These two sum up what I think perfectly. She's a disgrace.
Every time I hear of someone else pulling this bull, I want to scream. Give me a break- the market had nothing to do with the commitment you made to buy your property. I bought at the height of the market too BUT I put 20% and didn't take a huge home equity loan to improve my house. I have been doing it the right way- by saving money and making improvements when I have the cash.
Just because you are a dumba$$ should not mean, I have to pay for your lousy mistakes!  
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| Posted 4/12/10 2:07 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: What do you make of this?
sad to say, I think there are a lot of people doing this, and I know some personally that are very well off, and banking their 4-6 K+ mortgage payments. aggravating
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| Posted 4/12/10 2:21 PM |
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CkGm
They get so big, so fast :(
Member since 5/05 13848 total posts
Name:
Christine
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Re: What do you make of this?
Posted by DRMom
Posted by Tilde
Posted by MrsFlatbread
for people who have legitimate hardship, it is is understandable, but just b/c you don't want to pay...is just ridiculous....
I understand legitimate hardship but there are other ways to go about it. My parents had a mortgage they could afford.
Then, my dad got laid off.
Then, he could only find an entry level position at the airport.
So, they couldn't afford their mortgage any more. But they did what they could. They SACRIFICED and my dad has never been late on a single payment, something he takes great pride in.
And when they couldn't do it anymore - they looked into selling and starting over. DH and I bought the house instead but there was NEVER though of defaulting or any other scheme. And even though it turned out the way it did, I am so proud that my dad kept that house for 40+ years honestly, and with integrity!
Just playing devils advocate here-what if your family didn;t have that option? What is your parents had no children, no one in a position to do that for them. They could not afford it, and could not sell it since even if they did, they would owe more that they could get? What then? The OP's post is not a good example but there are people who are stuck in the position I described above with no way out. I have a two friends going through this right now. DH's laid off and reduced salary. Can't afford the mortgage anymore. One is in modification process. The other is doing a short sale...
I think the difference is they have NO choice. Plus they are doing the responsible thing- getting a loan modification and doing a short sale are both responsible ways to handle their situations.
Many prayers and hope for better days for your friends.  
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| Posted 4/12/10 2:22 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: What do you make of this?
Posted by DRMom
Posted by Tilde
Posted by MrsFlatbread
for people who have legitimate hardship, it is is understandable, but just b/c you don't want to pay...is just ridiculous....
I understand legitimate hardship but there are other ways to go about it. My parents had a mortgage they could afford.
Then, my dad got laid off.
Then, he could only find an entry level position at the airport.
So, they couldn't afford their mortgage any more. But they did what they could. They SACRIFICED and my dad has never been late on a single payment, something he takes great pride in.
And when they couldn't do it anymore - they looked into selling and starting over. DH and I bought the house instead but there was NEVER though of defaulting or any other scheme. And even though it turned out the way it did, I am so proud that my dad kept that house for 40+ years honestly, and with integrity!
Just playing devils advocate here-what if your family didn;t have that option? What is your parents had no children, no one in a position to do that for them. They could not afford it, and could not sell it since even if they did, they would owe more that they could get? What then? The OP's post is not a good example but there are people who are stuck in the position I described above with no way out. I have a two friends going through this right now. DH's laid off and reduced salary. Can't afford the mortgage anymore. One is in modification process. The other is doing a short sale...
This is WHY the bailout program was done.
Because there are individuals who could not make it.
It's easy to say, find a job, sell your house.
I saw this couple on TV once and it changed my mind.
They wanted a small little house to grow their family. They bought their house at the top of the market with an ARM loan. NEVER thinking what would happen to the market and even if interests rose it could not be THAT bad. Well it did. They lived in AZ. Their mortgage went from $1400 per month to $2400 per month. INSANE for a lot of people with "average" income in that State. Then people started to lose their job because of the economy. The DH lost his job. The women was working 2 jobs. He could not find a job for other a year. They drained all their savings to keep paying for the house. They BEGGED the bank to help them refinance to a fix mortgage. They were declined because of the economy. That's when a few years ago, a lot of mortgage company were closing doors and the housing market crashed. They owed more thant the house was worth. They wanted to pay but could never pay almost double what they had calculated their mortgage would be per month. There were stuck. No more money. Drained all savings. Only 1 income. Could not sell the house. Market was overfloaded with houses for sale.
This is who the bailout was for.
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| Posted 4/12/10 5:00 PM |
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Re: What do you make of this?
I don't have time to read all the responses, but find this a complete disgrace.
DH and I are in a situation where our home has decreased in value.
He works in construction and hasn't gotten paid for a job in close to 3 months.
We take the money out of savings for the time being to pay our mortgage, knowing once he finishes a bunch of jobs we can put that $$$$ right back.
We also bought a home we could afford, while most other people we know did not.
I would have a hard time not turning in a person like that. It's just not right and so many good people are getting screwed over now because of people like this. As usual, the people who are intended to be helped out, are not. People find a way to continue to scam the system.
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| Posted 4/12/10 6:04 PM |
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Goldi0218
My miracles!
Member since 12/05 23902 total posts
Name:
Leslie
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Re: What do you make of this?
If people like this make it hard for DH and I to get a mortgage, I WILL hurt someone. Seriously. Nobody wants an angry PG lady on their hands.
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| Posted 4/12/10 6:12 PM |
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beautyq115
New Year!
Member since 5/05 13729 total posts
Name:
Me
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Re: What do you make of this?
I have heard of this. I would never do it. I can understand why people would do it.
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| Posted 4/12/10 7:35 PM |
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jps
LIF Toddler
Member since 11/09 435 total posts
Name:
Jennifer
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Re: What do you make of this?
disgusting.. 
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| Posted 4/12/10 8:01 PM |
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Jackie24
~We Did it~
Member since 7/06 6718 total posts
Name:
Jackie
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Re: What do you make of this?
Posted by smdl
This is WHY the bailout program was done.
Because there are individuals who could not make it.
It's easy to say, find a job, sell your house.
I saw this couple on TV once and it changed my mind.
They wanted a small little house to grow their family. They bought their house at the top of the market with an ARM loan. NEVER thinking what would happen to the market and even if interests rose it could not be THAT bad. Well it did. They lived in AZ. Their mortgage went from $1400 per month to $2400 per month. INSANE for a lot of people with "average" income in that State. Then people started to lose their job because of the economy. The DH lost his job. The women was working 2 jobs. He could not find a job for other a year. They drained all their savings to keep paying for the house. They BEGGED the bank to help them refinance to a fix mortgage. They were declined because of the economy. That's when a few years ago, a lot of mortgage company were closing doors and the housing market crashed. They owed more thant the house was worth. They wanted to pay but could never pay almost double what they had calculated their mortgage would be per month. There were stuck. No more money. Drained all savings. Only 1 income. Could not sell the house. Market was overfloaded with houses for sale.
This is who the bailout was for.
I have to say that hearing stories like this puts things into perspective.
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| Posted 4/12/10 8:56 PM |
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mommy2bella
Where does time go?
Member since 12/05 9747 total posts
Name:
Kelly
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Re: What do you make of this?
Posted by Blu-ize
I'm in the middle of a bad situation and the banks have turned me down for a modification. We are still pursuing it but we have a legit hardship and they still turned us down. So they are not necessarily just giving bailouts to anyone.
I feel ya girl. We have 4 violations found on a forensic audit of our loan and are s-l-o-w-l-y trying to get our house re-fi based on that. Last year I was out of work for the summer and DH herniated his two disks at the end of 2008 and hasn't been working as much, but they denied us because they weren't fully following the bailout plan...
we haven't been late on any of our bills but we have been told that it looks bad that we are on time...so yes, people are "off the record" advising people to be late or default on their loans. My mortgage company told me to call back when we were 60-90 days behind and they could help us!
we got totally screwed by someone who was "helping" do our modification. Wasted almost five months on that.
Now I make "too much money" freelancing for the bailout...everytime we call, we get a different set of responses and directions...SO FRUSTRATING.
I have an ARM that will reset in a couple of years...I didn't have family to help me purchase a house, but the tax man said if I didn't buy a house I would have owed Uncle Sam more money that some people make in a year back in 2007 based on what we were making. So I did. Then DH got hurt...I was naive at the time, but we didn't buy a house that was out of our price range either...
Every story is different, so not everyone looking for a refi or mod for malicious reasons...
But stories like the OP make me so mad...just people taking advantage of a program set to help people who really need it.
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| Posted 4/12/10 9:34 PM |
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