The arguement that you've suffered losses and are trying to recover them is not a justification to not honor a contract that you signed. That kind of logic could be turned around on you and the bank could decide to raise your interest rate so that they can recover their losses from other clients. Wouldn't you feel violated in that situation?
Plus, as others have said, there is no guarantee that you'll be able to renegotiate with the bank and if you can't there's a high probability that your credit will be so damaged as to prevent you from securing alternative financing, so you very well could lose the house. What if your investments in the stock market also fall? There's no "sure thing" in this economy.
A society with no morals is no society at all and there is a level of moral conformity that is required for society to function. If you're looking for suggestions that fall outside the realm of what is contractually and ethically the right thing to do then you should look to a forum that is not comprised of mostly professionals that are bound to follow those rules.
The fact that you condemn first and don't give anything more substantial than a 'you will be judged' points to a MAJOR issue in the financial structure of the housing market in general.
This point bears discussion, the spastic reaction here reflects poorly on those that took it, this was offered up as a discussion point but judging from the reaction, it's apparently going to be more than a discussion point in the months to come.
If the information isn't there, then that's a point that should be brought up, if this offers a viable solution for homeowners who are trying to recover their lost savings in their homes which they bought in a time of hyper housing inflation, without having to give them up, then as unpleasant as it is, it should be discussed.
I appreciate those that stand upon a moral platform and use it as a basis for their work and their life, what I find hypocritical is those that use it to push others into conforming to their rationality for the current housing situation, or that they use it to condemn others.
We have ALL contributed to this current situation, whether agent, buyer or broker, and full disclosure of all options, however distasteful, is the only way to move forward.
1. Solid credit will be gone if you quit paying the mortgage.
2. It also depends on how much equity you have in the homes. Are the homes upside down?
3. If you have two homes one must be a homestead and the other a rental?
4. Have you looked into doing a short sale on one of them?
It is like a tar pit and you need good stepping stones.
What is your GOAL and why?
I am in Rotary International and I use their 4 way test in everything I think, say and do.
The test is:
1. Is it the TRUTH?
2. Is it FAIR to all concerned?
3. Will it build GOODWILL and BETTER FRIENDSHIPS?
4. Will it be BENEFICIAL to all concerned?
Always do right. This will gratify some people and astonish the rest.
There is no pillow as soft as a clear conscience.
"Live a good honorable life. Then, when you get older and think back, you'll get to enjoy it a second time."
If you are having a true problem I will help you but not to take advantage of the system.
You ask the question behind the question for most people who own a house right now. What stops you from doing this is your integrity. You agreed to repay these mortgages regardless of the "political environment".
You need also keep in mind that the law still allows banks to seek deficiency judgements under specific circumstances. You will also need to show financial hardship to "restructure" your mortgage. While at face value it sounds like a plausible plan - once you dig into the details you will find that it isn't as cut and dried as you think.
Since you appear to be in a good financial situation I assume that you've acted prudent in the past with your money and are frustrated with those who have acted imprudent being bailed out of their bad decisions. The problem with society is that for it to function, we must rely on others. If the government "lets the chips fall where they may" we will all suffer from a much deeper recession/depression... I don't know many people that said they did well in the 1930's...
I sincerely hope that you'll take the ethical and moral high road and continue to be a responsible member of society... while you may feel alone in this you are not... the vast majority of us all continue to do the right thing even though it seems like quite the opposite.
Not sure how the bankruptcy laws work when/if you are married, so you might have to get a "divorce" first to make things work.
Isn't America great? With more people like you, we can milk this situation for all it's worth.
Just curious...is this what you would ask if your kids knew what you were doing?
What if God knew what you were thinking of doing?
By the way, may I have the address of your properties?
I believe the fundamental idea behind these "stimulus" packages is to help people in need and to get our economy back on track.
A couple other things for you to consider are:
If you stop paying your mortgage your credit will be affected plus you will probably incur some additional penalties or late charges. In addition, what if when you go to "restructure" your mortgage the lender isn't willing to do that or meet the terms you want? Then what could happen? Is the risk worth the reward?
In Richfield (it appears where you are from) in 2002 the median sold price was $180,500 at the end of 2008 it was $185,500 a gain of $5,000. The median peak in Richfield was 2006 $223,750. The average were a little different but similar. I have heard before that from the 1950â€™s through the 2007 the average increase in the price of The Metropolitan area has been 5%. Real estate number one is a place to live and is a long term investment and should be viewed as such. A home purchased should be lived in for at least five years because just to cost to buy and sell a home is around 10%.
I have said for a number of years the long term credit market is broken, cars, houses and big ticket items. It assumes that we all have consistent income and jobs like 40 years ago. It is no longer true today. I have consulted with many clients on job transition. The long term credit market should allow for a provable hardship say loss of income, medical problems, etc. It should then allow a 3, 6, 9, 12 month moratorium on payments. It would then roll the missed payments interest into the long term loan. If this had been done in the past we would have a very small problem instead of a very large problem.
I my humble opinion the underwriters that certified the mortgage pools were A rated are the most of the problem. Bad and good were in the same pool. The good ones refinanced over time and the bad ones couldnâ€™t so what was left were the bad loans in the pool. This has been piling up for many years.
A raising housing market covers a lot of sins, fraud, and equity taken from homes that should not have been taken. Keep up with the Joneses. When the market dropped most (not all) of it was exposed.
I have never sold a home to a buyer without first doing a market analysis so it was a right price in the current market at that time. I never recommended a buyer finance with an adjustable rate unless they really wanted to. I educated them on each different mortgage they considered. With my client and ONLY DID WHAT IS IN THEIR BEST INTEREST not mine. I lost clients (income) because an inspection found a problem and we cancelled the purchase agreement. The home sold to someone else. I always used the most experienced vendors in inspection, warranties, title companies and mortgage. They had many options to choose from. I would not do anything that was in even the gray areas.
Under state law we have a Fiduciary duty to the client we represent. We are required by state law to owe these duties to the client, Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care and Accounting. If you want more information on Fiduciary duty please let me know I can send anyone a PDF.
I am not looking for any business but I am trying to change the world for the better one person at a time. I work on improving myself. Here is something I use everyday of my life.
And acceptance is the answer to all my problems today.
When I am disturbed, it is because I find some person,
place, thing, or situation -- some fact of my life --
unacceptable to me.
Nothing, absolutely nothing happens in God's world
Until I can accept life completely on life's terms, I cannot be happy.
I need to concentrate not so much on what needs to be changed in the world as on what needs to be changed in me and my attitudes.