Are homeowners purposefully missing payments to get a cut of the pie?

2008-12-11 21:43:58

#1

Harmor: Error_Name_Not_Found; +605|6853|San Diego, CA, USA

Are homeowners, who would not get any type of help if they paid their mortgages on time, purposefully going months overdue on their mortgages to have banks give them a piece of the bailout pie?

Are people willing to take a bankruptcy on their up-side-down homes (home they owe more than the current purchase price), instead of owing the bank $100,000 or more even if they sell it?

This bailout stinks...I'm going to have to pay for it.

2008-12-11 21:46:02

#2

Scorpion0x17: can detect anyone's visible post count...; +691|7070|Cambridge (UK)

From what I've been seeing on the news, I thought the problem was that this bailout money wasn't even making it that far, no?

2008-12-11 21:52:32

#3

Catbox: forgiveness; +505|7020

yes... what's the incentive to pay your mortgage if the govt is gonna send you a check to help pay it... people who pay their mortgage are getting the short end of the stick... hilarious if it wasn't so sad....

http://www.walletpop.com/blog/2008/10/1 … op-paying/

Last edited by [TUF]Catbox (2008-12-11 21:58:03)

Love is the answer

2008-12-11 21:55:05

#4

Kmar: Truth is my Bitch; +5,695|6905|132 and Bush

Scorpion0x17 wrote:
From what I've been seeing on the news, I thought the problem was that this bailout money wasn't even making it that far, no?

It's not. It is supposed to be used to secure new loans. The credit has been really tight due to the fact so many people have stop paying or are in default. It cost a bank over 60k to foreclose on a home.. and in this market they don't want it, it's flooded. You've got to miss about 6-10 payments now before you even see lis pendens. I've seen people buy a house, take a second, make no payments and split. The FHA guidelines are getting real strict.

Xbone Stormsurgezz

2008-12-11 21:58:38

#5

Scorpion0x17: can detect anyone's visible post count...; +691|7070|Cambridge (UK)

Kmarion wrote:
Scorpion0x17 wrote:
From what I've been seeing on the news, I thought the problem was that this bailout money wasn't even making it that far, no?
It's not. It is supposed to be used to secure new loans.

So in order to get some of the bailout money you have to take out a loan, not just withhold payment?

2008-12-11 22:01:54

#6

Catbox: forgiveness; +505|7020

now people are breaking into foreclosed houses in Fla and living there...lol
http://www.commondreams.org/headline/2008/12/08-6

they say they are desperate...??? So you get to break into someone elses property and squat there??

Love is the answer

2008-12-11 22:14:44

#7

Kmar: Truth is my Bitch; +5,695|6905|132 and Bush

Scorpion0x17 wrote:
Kmarion wrote:
Scorpion0x17 wrote:
From what I've been seeing on the news, I thought the problem was that this bailout money wasn't even making it that far, no?
It's not. It is supposed to be used to secure new loans.
So in order to get some of the bailout money you have to take out a loan, not just withhold payment?

There was other legislation passed earlier that was specifically designed to help stop foreclosure.
This is not these:
http://www.govtrack.us/congress/billtex … =h110-3648
http://www.govtrack.us/congress/bill.xp … ab=summary

Xbone Stormsurgezz

2008-12-12 02:26:05

#8

deeznutz1245: Connecticut: our chimps are stealin yo' faces.; +483|6797|Connecticut

I pay mine.

Malloy must go

2008-12-12 03:54:36

#9

san4: The Mas; +311|6992|NYC, a place to live

It's not just individuals who are rushing to suck at the bailout's teat--insurance companies are buying small banks so they can get in on the action.

Not to mention the illustrious, patriotic Warren Buffett--who bought a piece of Goldman Sachs not long before the government gave it $25 billion.

2008-12-12 05:11:01

#10

lowing: Banned; +1,662|6955|USA

you know the liberals are just loving this shit.

2008-12-12 08:01:39

#11

Braddock: Agitator; +916|6594|Éire

What a lovely big fucking mess we find ourselves in. I am thankfully not a home-owner yet but if my tax money was being sucked from me to bail out the very bank I pay my mortgage to then I suppose I'd be quite keen to get a little taste of the bail out 'action'... seen as it would be my fucking money and all.

2008-12-12 08:59:32

#12

ATG: Banned; +5,233|6833|Global Command

I do know of one homeowner who is going to default on purpose.
There have to be many more.

2008-12-12 09:54:19

#13

Pug: UR father's brother's nephew's former roommate; +652|6846|Texas - Bigger than France

Lots of people will. I remember someone on this forum saying they were planning to due to the inability to pay the variable rate mortgage. However, there is an option which is to declare bankruptcy instead. If you have a homestead exemption, if you default on your mortgage they can't kick you out of the house.

2008-12-12 12:59:22

#14

KEN-JENNINGS: I am all that is MOD!; +2,984|6936|949

Plenty of people are missing payments on purpose. It's not to get a "cut of the pie" so much as to get new rates and/or lower their mortgage. I'm fairly sure they know their credit scores will take a hit, but if it means paying $1k less a month many will probably take it.

Do you (Harmor) understand the idea of the bailout? The money is supposed to be allocated for new lending - to extend credit to those who are financially secure enough to buy homes (there are plenty out there), which in turn gives banks more revenue and helps offset the loans that are getting defaulted or risky. It (the bailout money) wasn't given to allow banks to lower mortgage costs outright. The problem isn't that people are purposefully defaulting to get an imaginary piece of the pie. The problem is that banks used the money (given to them to extend credit to worthy buyers) to purchase more assets, not solely to extend credit.

The only help people are getting (right now) in regards to their mortgages are from the lending institutions themselves, not the government. However from what I have been reading there are new conditions and ideas being thrown around for direct assistance to homeowners who are struggling to pay their mortgage.

And yeah, every taxpayer is paying for the bailout, not just you.

Last edited by KEN-JENNINGS (2008-12-12 12:59:59)

2008-12-13 09:23:07

#15

cpt.fass1: The Cap'n Can Make it Hap'n; +329|7000|NJ

The banks tell people to miss they're mortgage payments so they can help them.. It's a shame really, but what can you do?

The FHA Guidelines are getting alot stricter but in a sense that doesn't make any sense.. They actually need to Losen up on Guidelines for people to start qualifing again.. Reinvent a light doc loan for people who are self employeed and write everything off, and just well use common sense.

Bottom line is banks don't know what they're doing and it's making matters worse.. Even with interest rates as low as they are right now it doesn't help because everyone whose bought or refinanced in the past 4 years can't get their home valued at even close to the amount of money they owe.. So even if they have excellent credit and can prove that they can afford the deal, they're shit out of luck...

So we need banks to open up two options

1. Over 100% lending to people who can prove qualifications which problems are
a. they might be trapped in there home for a long time till they pay there mortgage down to a resonable amount
2. Forgive large chunks of loan amounts so people can Refinance or even sell there home..
a. the banks lose a large chunk of money on every home that's been overvalued in the past couple of years.. but at least we get movement
in money again..

Last edited by cpt.fass1 (2008-12-13 09:30:08)

2008-12-13 09:28:45

#16

usmarine: Banned; +2,785|7066

you bet your ass people are missing payments on purpose.

2008-12-13 09:30:51

#17

cpt.fass1: The Cap'n Can Make it Hap'n; +329|7000|NJ

usmarine wrote:
you bet your ass people are missing payments on purpose.

People are told by the banks if they're looking to a loan Modification to miss payments..

2008-12-13 14:02:58

#18

Scorpion0x17: can detect anyone's visible post count...; +691|7070|Cambridge (UK)

cpt.fass1 wrote:
usmarine wrote:
you bet your ass people are missing payments on purpose.
People are told by the banks if they're looking to a loan Modification to miss payments..

WHAT???

Banks are telling people to miss their payments?

Well, I guess it makes sense from the banks point of view - either they get money from the government, or they repossess your house.

2008-12-15 07:19:04

#19

cpt.fass1: The Cap'n Can Make it Hap'n; +329|7000|NJ

Scorpion0x17 wrote:
cpt.fass1 wrote:
usmarine wrote:
you bet your ass people are missing payments on purpose.
People are told by the banks if they're looking to a loan Modification to miss payments..
WHAT???

Banks are telling people to miss their payments?

Well, I guess it makes sense from the banks point of view - either they get money from the government, or they repossess your house.

well yeah but it's not so much that.. Banks don't want your house right now, they're not going to be able to sell it for the loan amount or really do anything with it.. But in the same sense banks won't work with you if you're not in default, so I've had 20 reports that bank reps have been telling people to miss the payment so the banks will restructure the loan.

2008-12-17 05:11:34

#20

Kmar: Truth is my Bitch; +5,695|6905|132 and Bush

Scorpion0x17 wrote:
cpt.fass1 wrote:
usmarine wrote:
you bet your ass people are missing payments on purpose.
People are told by the banks if they're looking to a loan Modification to miss payments..
WHAT???

Banks are telling people to miss their payments?

Well, I guess it makes sense from the banks point of view - either they get money from the government, or they repossess your house.

I can confirm this. I know people who have contacted their lenders about being late. Some of the banks have told them to call back when they get a few more payments behind because there is more they can do for them.

Xbone Stormsurgezz

2008-12-17 05:25:56

#21

Varegg: Support fanatic :-); +2,206|7114|Nårvei

Wtf?

Is the mortgage tied to the house and not the lender or am i missing something?

Where i come from the mortgage is tied to you personally and there is no way escaping it except bankruptcy and you really don't want that to happen because you'll never be able to borrow again after that ...

Wait behind the line ..............................................................

2008-12-17 07:32:07

#22

loubot: O' HAL naw!; +470|6882|Columbus, OH

I don't understand how people can advantage of a situation. These are the same people who go to the store, when there is a power outage or major storm*, and buys all of the batteries, bottle water, etc on the shelf and sells them to people for an excessive amount.

* fix typo

Last edited by loubot (2008-12-17 07:33:10)

2008-12-17 09:41:43

#23

Scorpion0x17: can detect anyone's visible post count...; +691|7070|Cambridge (UK)

Varegg wrote:
Wtf?

Is the mortgage tied to the house and not the lender or am i missing something?

Not owning a house I'm not 100% sure the exact ins and outs, nor am I even sure if it's the same in the states, but my understanding of mortgages in the UK is that they are secured on the house.

I.e. when you first buy a house, using a mortgage, you don't actually own it, you own the right to live there and call it your home, but the bricks and mortar pretty much all belong to the mortgage lender. Only when you've completely paid off your mortgage do you own the house. And, should you default on payments, the mortgage lender can then repossess the house.

2008-12-17 09:54:55

#24

SEREMAKER: BABYMAKIN EXPERT √; +2,187|6872|Mountains of NC

I just closed on my house on Nov 26th and then this rate dropping has hit the news, I wonder if I can refinance this soon

https://static.bf2s.com/files/user/17445/carhartt.jpg

2008-12-17 10:04:50

#25

ATG: Banned; +5,233|6833|Global Command

I have been going through loads of paperwork trying to get a mod.

They have been playing games and now they say they never received the paperwork. I have only been one month behind and for us it was mortgage payment or christmas.

So I guess christmas is back on and maybe they'll stop with the games in a month or two.

I am in a position that if they do not substantially rewrite my loan I will walk.

BF2S Forums Are homeowners purposefully missing payments to get a cut of the pie?

Scorpion0x17 wrote:

Kmarion wrote:

Scorpion0x17 wrote:

Scorpion0x17 wrote:

Kmarion wrote:

Scorpion0x17 wrote:

usmarine wrote:

cpt.fass1 wrote:

usmarine wrote:

Scorpion0x17 wrote:

cpt.fass1 wrote:

usmarine wrote:

Scorpion0x17 wrote:

cpt.fass1 wrote:

usmarine wrote:

Varegg wrote:

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