Foreclosure Fallout: Upside-Down Homes

This guy from Keller Williams is exactly what is wrong with this whole mortgage industry. The guy says "people need unload them before hurricane season" what he is reallly saying is ..let me list your property so that if someone is interested I can make a commission. If you are upside allot on a property ask yourself what is more important. Have a foreclosure or be upside down for 200,000. Remember if you have a first and second mortgage and you are upside down, the second mortgage will probably get nothing if you are foreclosed. My suggestion. stop paying the second mortgage and then when they contact you, tell them to eat 90% of the principle. at first they won't want to do it, but if you stick to your guns they will have no choice. Do this it works and stay away from advice from Mortgage people like Keller Williams (after all isn't companies like them that created this problem!!

Welcome to reality. This over inflated housing bubble had to bust. This lady bought a modes home for a mere half million dollars. I am sure the sellers at the time walked away with 200, maybe 300 thousand in profit. This lady probably had that...I am gettin a deal attitude and was ready to sell to the next SUCKER for 650 Thousand. Welcome to reality....you cant sell hovels and caves for the price of castles. Sooner or later somebody had to stay STOP, YOU ARE OUTTA YOUR MIND. This lady found out the hardway. Then, she gets this negative equity loan....and has 4,000 dollars of interest monthly. If she can afford a $3,000 dollar mortgage, she could afford a moderate priced home with a normal principal and interest mortgage, standard conventional , BUT NO...she has to have a half million dollar home she can brag about...not for what it looks like...for what she paid...oh yeah...i can see her now...Oh, i got my home for only 550....OOOHHH, AAAAHHHH, OOOOOHHHH, you bought a rinky dink shack for a half million bucks.....and now you are stuck because no one out there is stupid enough to pay you another 100 thousand over what you paid. Your home is currently valued at 380 Thou....then thats the real value....deal with it. But, if you still insist on paying far too much money for something that has a false value...I have this 1984 Chevy Camaro you can have for a mere 20,000, I know its probably worth..oh...300, or 400 dollars...but for you....you can pretend its a classic car and brag to your idiot friends that you paid $20,000 dollars......dont you just feel so important....maybe one of your friends is equally stupid..and will pay you 25thou for the car...and you idiots can keep re-selling and keep asking for more...till somebody says...STOP.

Please note....you didnt lose any money...the value of the home is what somebody says it is......unless the money is cold hard cash...you are not losing anything.....the value of your home has been adjusted accordingly....you overpaid..because you are a fool. The Keller Williams guy, says to UNLOAD THE HOME...which means...he wants you to sell...to some other fool who thinks they will be getting a deal, and he gets a commission.

YOu have not lost any money, cause you are making payments on your NO MONEY DOWN MORTGAGE. You didnt pay cash....so you have lost nothing.

Now, about that Classic 84 Camaro, I will give you a deal....take out a home equity line...for a mere 10K, and its yours.....the rust and bald tires give it that...classic feel.....all classic cars leak oil....just remember...you are gettin a deal

The country will never rebound from this. I see most everyone just leaving and mailing the keys to the bank. Since the banks are not lending then there is nothing more one can do except leave.

Joe, I'm very afraid you're right.
Plan for the worst case scenarios.

Quit blaming banks and mortgage companies,they didn't put a gun to your head!.
There's no such thing as "predatory lending" - there's only ignorant borrowing.
Why on earth would someone spend 550K for what is probably an average home?
The only reason would be that they were speculators - and I don't have much sympathy because they knew the game would end when the music stops.

This is a great news ad for short sell Miami.

And upside down home owners need to stop saying they are victims. They made a choice. No one put a gun to their head. They made bad decisions.

The same thing happens with credit cards. People get them, run them up buying crap and than complain that they have to pay the money back.

howcouldyousaythat, i agree with you when you say you dont feel bad for people who made poor decisions. my brother gambled on the market like the rest of them and had to foreclose on one of the properties he invested in.
i dont feel bad for him either. you play you pay.
but i will say this, someone needs to be bailed out somewhere. this problem is much too large and nationwide to not do something about it.
simply out of my own self-preservation i know something needs to be done or this economy will be falling to its knees in a deep terrible collapse and i will be paying for it regardless of the fact i made all the right decisions.

Why did she have to buy a $550K home? Does she have 6-8 kids that require a home with a lot of space and bedrooms? It was clear she couldn't afford her home in the first place or she wouldn't have needed a special negative equity loan for it. I also purchased my dream home here in South Florida....for half the price of hers, and only 1100 square feet. Why is it my dream home? Because I can afford it with a traditional loan and still be able to put money away for retirement. Sometimes we really need to rethink our dreams and accept that if your dream home is something beyond your financial means...it's time to sit down, put on your 'grown-up' hat, and set your dreams a little lower.

Everyone is so quick to rush to judgement. We were paying 3000/month rent for a three bedroom/1 bath house (2 parents-3 kids). (and that was cheap for any size house) We bought a house, I was employed, paying 3100/month, (not much left over in either house), then the company I worked for lost their main contract...now I drive school buses...that doesn't pay the rent nor the mortgage. Jingle mail to the bank. After trying for two years to refinance, etc, the bank said no. Now that we are out, two years behind in the taxes and insurance... the banks want to deal...hmmmm

george-m,
If you didn't have much left over after paying your rent/mortgage, then you shouldn't have bought a home.
It's called being financially responsible.
It never occured to you what would happen if your job situation changed?
You knew you would be in trouble if you lost your job, but took the risk anyways.
Why not, RE only goes up, right?
Too bad, soo sad.
Now quit complaining and go wait in line with the rest of the losers for the eventual government hand-out.

This is what happens to people when they want what they can't afford. Everybody wants the big house , the great car but they just can't afford it. Now they want to blame others and the truth is that it is no one's fault but their own. You can't have it all.

sae,(guess what that stands for)

jenny, if you consider 3 BR/1BA eatin kitchen with one family room a big house, wow !! I don't consider my 1992 Toyota Corolla a "great car". I don't consider getting our family clothes at the Goodwill a luxury.

yes, we took the risk, anyone buying a house does. From your line of thinking, for anyone who has a job that is needed to pay for the house, they are financially irresponsible if they depended on that job for the house..... We could afford when we bought...that's why we bought. You people who are sooo righteous obviously have never had anything go wrong in your lives...obviously you must be perfect, NEVER making any mistakes.(i've owned 8 houses, selling them then moving to the next as I was transferred) I'm not complaining. I'm just stating facts. as far as a government handout, I'm not waiting for that...the deal is done, the bank has the house, and I've moved on.

ES

Something doesn't add up here. Monthly interest of $4,550 on a mortgage of $590k?! That's 9.25%!

hmmm!!! Ms Davis, this is your best option. www.youwalkaway.com

Marina Davis is a parasite who is stealing from tax payers, workers, and savers via bailouts and hyperinflation.

She's basically renting a house and using our money to subsidize her rent. She isn't losing $1,700 a month. Her bank is losing $1,700 a month. She'll just walk away when the bank stop paying for her luxuries.

If it was just the bank, I'd say screw them. Let them pay the consequences for their bad gambles. Unfortunately, the banks don't get fukced, they fukc you. The banks will get bailed out by the government who will pass the bill on to you, me, and our children via higher taxes and hyperinflation.

What will happen to good old Marina? She'll have a foreclosure on her credit report for 7 years. She'll rent for a couple of years, maybe even the full 7. Then she'll buy the same house or an equivalent one for less than a quarter of the price she previously paid. She'll come out ahead. It's you and me who are fukced.