Comments on: How mortgage default could get much worse http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: clbemail http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15724 Wed, 09 Jun 2010 19:40:28 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15724 One thing to note here is the NFCC is stuck between what its backers want and what’s in the best interest of consumers. Like Fannie and Freddie being stuck between their mission to help advance home ownership and effective due diligence and balance sheet management. I totally agree that in some cases a family’s safety, security and long-term financial health are better served by walking away but how does an organization like the NFCC make that kind of statement and survive the political fire storm that would surely follow. I think the mortgage default crisis will get worse, and I sympathize with the NFCC.

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By: PaulV http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15704 Wed, 09 Jun 2010 13:05:49 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15704 Your analysis is absolutely correct. I am one of those who has been frugal, paid bills on time and never extended myself financially. I personally lose because of the bank bailout and because of the reckless use of one’s house as the ATM machine by many. However, on a purely logical basis I could not understand why people do not walk away from an underwater mortgage. It is really no different from a stock option. You have an option to buy the house at the end of 30 or so years. If you do not exercise the option, it is no sin. The one’s at fault really are the people who are willing to sell me the option with very low price. They should pay the price. It is true that if everyone followed this, we have a disaster– However, I agree with you that the false morality play is a temporary fix. People will wise up and those who wise up early will benefit more. At my “personal” cost. However, this is what logic dictates. I was surprised that there is almost a conspiracy of silence on this in the newspapers.

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By: Benny_Acosta http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15703 Wed, 09 Jun 2010 12:38:02 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15703 Loaning money at interest has always been a bad idea. The housing market is no different. Right now I’m upside down on my house by a couple of thousand. If all I had to pay back was the money I borrowed then it wouldn’t be so bad. But even after taking my tax dollars just to stay alive, the bank still wants me to pay interest on a house that isn’t worth what I owe. The tax payers helped out the banks, but the banks don’t care about helping their customers at all.They only care about the interest. The care nothing for serving the community.

I wouldn’t mind refinancing but there are so many scams out there that it’s not worth the effort. But if my house payment began to interfere with the needs of my family I’d have no problem dropping this house like a bad habit. Usury as a legitimate business practice must come to an end. Everyone will be much happier for it.

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By: yr2009 http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15702 Wed, 09 Jun 2010 12:38:01 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15702 The Hope and the Hype

What’s keeping those underwater mortgagees paying is Hope –
The hope that their property will regain its past value.
What’s keeping this hope alive is Hype – The notion that an economic recovery is underway, and things will get back to the way they were before.

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By: befair http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15701 Wed, 09 Jun 2010 11:57:13 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15701 A mortgage is a secured loan. The bank makes an agreement to loan you money for a profit and take your property if you fail to repay them. If the property is worth less than the loan then walk away. The bank takes a risk for their profit. Any moral persuasion to keep paying an underwater loan is just bank propaganda.

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By: jajanssen http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15696 Wed, 09 Jun 2010 10:31:53 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15696 Are you serious?, just because you can loan something doenst mean its a smart idea to do it. You can all blame the banks but in the end it was plain greed on both sides.

thanks your brother for me, thank god he is enjoying life.

also defaulting on the banks and letting them all fall would cost more then keeping them alive.

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By: ptribe77 http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15690 Wed, 09 Jun 2010 08:00:25 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15690 I’ve changed my mind on this whole issue over the last year. I did condemn people for defaulting on their mortgage, huge houses that were way more than they needed. Now my brother has done the same thing and I took a step back. What if YOU had to make the choice between a mortgage payment on a money pit or being able to put food on the table and enjoy life? He chose to take the FICO hit and downsize and is much happier for it.

The only reason it all still makes me mad is that our idiot politicians keep giving the banks our money instead of letting them eat it. They should be the ones taking the hit, it was their choice to lend, not the taxpayers.

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By: Abbyjacks http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15684 Wed, 09 Jun 2010 03:49:39 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15684 Lets quit rewarding bad behavior (people that over extended themselves). Lets help the Americans that have lost their jobs and have been out of work for a long time. Not these people with no money down and living in a house they should never have been put in in the first place.

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By: breezinthru http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15683 Wed, 09 Jun 2010 03:49:28 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15683 The MBA (Mortgage Bankers Association) weren’t bashful about short selling their national headquarters in Washington DC in February of 2010.

They encourage mortgage holders to be stupid, but when they disregard their own obligations it’s just a business decision.

http://dailybail.com/headlines/delicious -irony-mortgage-bankers-association-mba- dumps-headq.html

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By: CDNrebel http://blogs.reuters.com/felix-salmon/2010/06/08/how-mortgage-default-could-get-much-worse/comment-page-1/#comment-15677 Wed, 09 Jun 2010 00:00:09 +0000 http://blogs.reuters.com/felix-salmon/?p=4173#comment-15677 wow no comments after almost 5 hours! must really be leaving people in stunned/scared silence…

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