all you need to do is stop paying, get foreclosure notices. Boom you get a discount. http://www.nytimes.com/2012/01/24/business/a-deal-on-foreclosures-inches-closer.html
I am not going to read the article and hope what you imply is wrong. I paid off my house over 18 years. I want my money back and I will live with a crappy credit rating for a few years, and enjoy the extra cash in the bank. While there are those who I have sympathy for as all went wrong after they bought a house well within their means, I have no sympathy for the dirt that bought houses well beyond their means and are crying about it now, and getting breraks from the socialist faction in our country who claim it's all the fault of the banks. Banks may have been complicient in a lot of this garbage, but people had to make the final call themselves. People had to sign the paper and when I signed ours I read everything and debated a long time if it was a good idea. I also brought 20% down to the table, and planned "what if" for times when finnaces were short. That is just basic common sense to me, but I guess when you have a governement that knows it can leverage more power by aiding people into more debt there is no hope and we become another failed country.
Obama is all about free ice cream. Everyone wants to vote for someone who will give them free ice cream.
The whole system has gone to shit. Banks and homeowners should have taken the loss. Most here advocate the Wallstreet bailout (with taxpayer money), but not the homeowner bailout (with taxpayer money). Two wrongs don't make a right, but the irony is glaring - use the peoples money to bailout the wealthy, but not the people.
Cal and NY AGs are holding out for the right to prosecute bank abuses without reference to this payout/principal reduction. No deal is going to get done without their signoff. This is, IMO, a pretty decent reason to buy a few long-term puts on the financial sector. The scale of abuse that has yet to see any prosecution at all is mind-bending.
When first thinking about this I had that tinge of resentment because I like most of you am a responsible informed consumer and only buy what I can afford. But then if you really think about it these people aren't really going to be any better off. The majority will still be foreclosed on, this in the end if it ever happens is really just cushioning the blow the banks will take when everything is finalized. So it seems to me it's a bank bailout out disguised as a way to help out the asshole that never mows his lawn.
I have been reading about this for days now, I tried not to post or comment on it because it really pisses me off that yet again they are trying to help out millions in foreclosure by giving them a reduction in their mortgage by as much as $20,000. Just goes to show you how bad the housing market is in along with the general economy, but they continue to just brush it off by continuing to think that handing out trillions of dollars is the answer, its not.....Just to let everyone know $20,000 is something, but not enough, I would say the million of those in foreclosure will still go into foreclosure because they are underwater for a lot more than just $20,000, for most its probably tens of thousands of dollars more, maybe even six figures plus. The reason why there hasnt been a bottom in real estate prices is because of these programs set in place, housing prices should be 40%+ lower than they are around the entire country, its just that they keep propping up this entire market that the real value of a house isnt showing yet. Flood the market with these foreclosures and stop bailing out millions and millions of homeowners so we can all take notice of the true value of the housing market....again where is the free market??????????????????????????????????? Where is it ??????????????????????????????????
You are right, these people arent going to be any better off. I would say out of the million households they think they are going to save maybe 20% will be saved the rest will still be foreclosed on.
I don't tink those folks deserve a 20k check towards their mortgage,but i think there was a full on move by the banks to sell as many mortgages they could,just get a signature,so they could be repackaged in a fraudulent credit default bond scheme where every mortgage was resold to multiple buyers not knowing these were bogus bonds,no titles for proof,instead of bringing these scammers to jail,they patted em on the head for shitting on the carpet,i think all the Dems and Reps,banks,fed,are aware of this ,whether in on it or not,it's the greatest hoax pulled off yet and if they get caught ,they would give the money back theoretically reversing this fiasco,fat chance,they have no intention of admitting to us the truth,if we don't vote them out this election we are done,if not already
It really does make you question the sanity of the whole situation. Buyers knowingly bought houses they couldn't afford, banks willingly lent them the money to buy these houses they couldn't afford, and the government encouraged banks to lend this money to buyers so they could buy houses they couldn't afford. I recall driving by a few sub-divisions being built pre-2007 and every house on the block was a McMansion-type house. You'd be hard pressed to find a modest, middle class-type house. What a crazy few years!