Should we feel sorry?

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southoctracker_IHB

southoctracker_IHB

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<p>As a human being, it's hard not to feel bad for some people who didn't really pay attention, took bad advice to "buy" a property and are/will be losing their homes. I saw this posted on a seller's message board on another site, and wanted to share...it's ridiculous on so many levels. My emphasis in bold:





"I am really stuck in a bind here. Can someone give me some advice? I love my house and don't want to lose it, but I think I'd be stupid to keep it considering my situation. <strong>I live in Corona, CA</strong> 92879. There are <strong>currently 5 foreclosures on my block (not to mention numerous ones on surrounding blocks) all for about $100k less than what I owe</strong>. My problem is also that <strong>my rate will adjust</strong> come September, so I will be stuck with an adjustable rate and will have paid $43,000 in mortgage payments from today until then. I don't want to throw $43,000 in the trash and I don't want to foreclose. Should I do a short sale? I havent made a late payment yet on my mortgage. I was hoping though that the lender would rewrite my loan at the current value with lower monthly payments. is that common at all?"





Later, it is revealed that "I can't refinance because <strong>I did 100% financing last year to buy the home</strong> plus I have a 2yr prepay. "





It gets better (or worse, depending on how you look at it): "FYI: I am a <strong>wholesale mortgage AE</strong> and <strong>do not make what I used to anymore</strong>, so I currently <strong>can't afford my current monthly payment either</strong>. My savings is gone because of it."





To sum up: Someone <strong>in the mortgage industry</strong> took out a 100% adjustable loan to buy a house they obviously had no business affording. Now, they can't even afford the teaser rate, which is set to adjust upwards, and don't know what to do. Anyone else see a problem here?





Hard to feel any sympathy...</p>
 
This is why OC and RS counties are f'ed big time. So many of the residents are involved in RE and most of them got sucked up into the mania. They bought one, two, three houses. Sheesh!!
 
I have no sympathy at all for home debtors, credit card debtors, or any other debtor. Whatever happened to personal responsibility? Just because they will give you the money does not mean it is a good idea to take it. If I go down to Javier's tonight and get smashed and wrap my car around a tree or worse on the way home, would you feel sorry for me because I said "but gee, they kept giving me margarita's so I thought it was ok"...
 
<p>The "why pay $43,000 when I know I'm F'd next Sept" message speaks volumes to me of what we're going to see in the next few years, essentially everyone with an ARM, and certainly all option ARM's are in the same position right? And not even in the next few years. Today! Why pay for a loan I know I won't be able to afford when my rate resets and my payments jump? Just some food for thought on a Friday afternoon.</p>

<p> </p>
 
I think this guy has made up his mind all ready and is just writing about it to make himself feel better. He'll walk.
 
"<em>I was hoping though that the lender would rewrite my loan at the current value with lower monthly payments."</em>





I think this FB is speaking for the entire homedebtor community with that statement.





Think about this: All of these idiots put themselves into a piece of real estate that they had no right being in. They crowded out the more responsible among us to do it, and now they think they can just get the bank to rewrite the loan or forgive the debt or something that will allow them to continue squatting in our houses.





I guess I don't feel very sorry for them...
 
So I assume what this Guy is saying is "I joined the Navy to see the World....now I've seen it how the **** do I get out"?
 
<p>"I was hoping though that the lender would rewrite my loan at the current value with lower monthly payments. is that common at all?"</p>

<p>Amazing! I'm absolutely speechless. You could ask a 3rd grader if banks will just give you money <em>because</em> they are banks (where the money is) and they would give you the right answer. Practically the same question.


</p>
 
Here's somebody to be at least a little sorry for. He calls me to stretch out his foreclosure, which I only do if the bank is being unreasonable. The guy paid 325 or thereabouts to buy a house, which wasn't shocking at the time, put downpayment of 70,000, intended to live there, can't make the payments, and is trying to sell for $260,000, which is his mtg plus the brokerage commission. I rather think it was his life's savings. His broker seems to think that he can sell at $260,000. Maybe.



I feel sorry for him. I quoted a reasonable fee, which he probably doesn't have, so have no more gory details. He said he would call back. that means that he

doesn't have the fee. Nearly always.



Usually, I have somebody who is willing to refi, or the bank did something truly horrible, or money is coming in from a delayed probate, and the bank won't wait. Usually I won't just stretch it out because my fee is cheaper than a couple of months' rent.



I'm rethinking this. This part of my practice is only revenge on banks for doing such stupid things to buyers, at closing, tho I do make a little money on it. Now I'm thinking that I should in my small way punish them by delaying things in cases where I haven't previously thought appropriate.



Since they are trying to weasel out of any negative consequences.



I will mull the morality of this.
 
I'm sure this has been covered before, but does anyone know the credit implications of walking away from a primary residence? They can't go after your other assets right? Your credit gets slammed I would assume, but how much?
 
What is truly sad, is that this person is a mortgage wholesaler AE. Shouldn't someone in the business understand how the process works? Ugh... just shows how many incompetent people were in the business to make a buck.



It's sad to see people lose their homes, but I have no sympathy for them. It's sad when I lose $500 each time I go to Vegas, but you don't see the dealers dealing out sympathy cards to me.
 
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