Comments on: More thoughts on short sale, foreclosure and bankruptcy

By: Stew

Stew — Tue, 02 Jun 2009 22:28:17 +0000

Guys, I understand you a little better now – if you look at today’s post, you see that my attempt to find a way to repay the money that I owed was not received well by my bank. They would rather that I default or foreclose because then their insurance kicks in!

By: Fernando Herboso

Fernando Herboso — Tue, 02 Jun 2009 22:25:23 +0000

When the banks act with the same moral standards as you are. . I will advise my clients to do just that. .for now?. .my take as a Realtor experienced with Short Sales with a current inventory of 30 listings. .
We will never see our home values again as high as 2005.. during our lifetimes. . .we have 3 times the amount of foreclosed homes waiting for their turn. . we have in same places in the US 1 out of 14 homes with a foreclosure notice!!
The banks have acted irresponsible and I feel at this point that if you qualify for a short sale.. you should take it and run!

By: Weekly Mashup, Memorial Day ‘09 | My Life ROI, Getting the Best Return On Life

Sun, 24 May 2009 16:03:22 +0000

[...] Little by Little: More thoughts on short sale, foreclosure and bankruptcy. I just had to comment on one of the statements that their are moral implications of not paying [...]

By: ABCs of Investing

ABCs of Investing — Thu, 21 May 2009 03:25:53 +0000

Stew, with all due respect I think you are crazy!

Mortgage companies make their money by estimating default rates and charging their fees around those data. Their business is based on trying to maximize profit by lending as much as possible but keeping the defaults to a level where they can make a good profit.

If a mortgage company gets greedy and lends to everyone then that strategy might do well (in good times) or very poorly (in bad times). A mortgage company that doesn’t take any risks won’t make much money because they won’t make very many loans – although their default rate will be quite low.

My point is that you are not “screwing” the mortgage company if they don’t get the full loan value back – of course they would prefer the full amount but that is just the way their business is – not every mortgage is going to be paid 100%.

If you make you and your family suffer to try to live up to a business contract then you are only hurting yourself – which I don’t think is very ethical.

By: Christian Personal Finance

Christian Personal Finance — Wed, 20 May 2009 15:20:40 +0000

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By: pligg.com

pligg.com — Wed, 20 May 2009 12:33:02 +0000

More thoughts on short sale, foreclosure and bankruptcy…

On the outset, I think it is important to state that I do not believe that the current financial pinch in which we find ourselves was the result of reckless spending or living above our means. It is true that my wife and I made some unwise decisions ea…

By: Abigail

Abigail — Wed, 20 May 2009 07:39:19 +0000

I just wanted to say thank you. Thank you for being open to other people’s ideas. Thank you for owning up to some of your mistakes — and for actually realizing that you have an obligation to your creditors.

It terrifies me how easily our society walks away from debt. In desperate situations, I guess I kind of understand short sales. But I don’t understand, I guess, why people don’t sell the homes, pay a huge chunk of the mortgage off, and then refinance to some low, monthly payment. There may well be practical concerns that impede this idea, but it’s worrisome that no one ever seems to even consider it.

So I just wanted to say that you’re doing a good thing by realizing the commitments you made, and by realizing that you need to try to honor them to the best of your ability.

By: Cascia @ Healthy Moms

Cascia @ Healthy Moms — Tue, 19 May 2009 22:57:53 +0000

I wish you the best of luck with your home. My husband and I tried to sell our house about a year ago by doing a short sale. Unfortunately id didn’t work because their just were not enough buyers around at the time and the few buyers that actually looked at our home either had issues with the house or the price. To make a long story short we ended up foreclosing. The day I packed all of my stuff to leave was the hardest thing that I’ve ever done. We made so many memories in that home and it was a great place to raise a family. I hope you don’t ever have to go through what we did.

By: Kristen

Kristen — Tue, 19 May 2009 18:37:40 +0000

It might be worthwhile for you to meet with a housing counselor. If you visit the web site for the U.S. Department of Housing and Urban Development (www.hud.gov) you can find a certified housing counselor in your area.

There is no cost for what is termed as a “foreclosure prevention counseling session.” The counselor could sit down with you, look at your financial picture and what you have going on with the mortgage and make some recommendations to help you decide how to proceed. The counselor would also have a better idea about how each of the options might affect your credit score. The counselors also have the ability to intercede directly with your lender to come up with a workout plan to help you avoid a foreclosure if that’s where you might be heading.

By: South Texas

South Texas — Tue, 19 May 2009 18:20:37 +0000

Have you considered a property management company? My neighbor uses one and they always have renters.