Quote:
Originally Posted by weatherboi
Most people in this country who are under water or are in foreclosure are so because of criminally over inflated market values, predatory mortgages and unethical credit card companies. All mostly directed by banks, mortgage companies, and their regulators. People were given the illusion that they were living within their means by people throwing misinformation in their faces about the state of our lands market values. I bought my house at peak market value in foreclosure. It is now worth less than that foreclosure price. That is under water and a bad investment on the banks part...not mine. I love my house but if I am overpaying for it what is the point??? The market may never bounce back to what it was. Many other fiscally responsible people have chosen to walk away because of this and I think about it too.
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The numbers of fiscally responsible (and always have been) people that are in this situation that are actually exercising financial prudence with walking out just as you say. I think that they will take the licks of a very poor credit rating over seeing (and feeling the effects of) what began as a solid financial choice fall apart due to unethical and unscrupulous lending practices.
As the mortgage situation began to hit the middle-class (of every color), what was really going on gained clarity. When buying a home, there are many factors that have been "smart thinking" in terms of investment. Everything from paying less per month than renting and having something to show for it as well as more disposable income, income tax deductions for mortgage interest paid that otherwise goes down the drain to just being able to have pets, maybe a garden if that is what you like or space for hobbies, etc. It also was a means to be able to turn equity into retirement funding for many- even at what used to be considered "usual & customary" accumulation of that equity throughout the term of your mortgage (not the criminally inflated rates prior to the bubble bursting). Home ownership is not for everyone, but for many, it was a wise choice.
Being in the situation you describe and watching for the point at which your mortgage goes "upside-down" due to what the entire mortgage/banking/investment industry was doing is just the breaking point for many people. The anger is rising. And it should rise. And we all need to stand together and protest and not distinguish between those that might not have had "perfect" credit rating histories or even cut it a bit too close in trying to own a home.
If wages had been increasing at a fair ratio to the
"1%" of the wealthy over the last 3 decade, those people would have been fine and enjoyed the "fruits of their labor" which they deserved like anyone else.
We need to dump the stereotypes of the "sub-prime" mortgagee and take aim at the structures of the real problems that impact us all- shoulder to shoulder. When everyone gets ahead, we all do. One accident or major illness, a child diagnosed with cancer, a parent having a stroke is often the difference for someone going from homeowner one month to foreclosure the next. And that consequence ripples out to us all.
Hell yes, I can see getting to the point of saying the hell with it, I’ll cut my losses and start anew. Eventually, credit scores rise and we can pay down debt. Although, I have to say at the age of 60, I feel that my choices are more limited than someone lets say in their 30’s. They have the time to recoup their losses and start anew.