The Coming Second Wave

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saxplayer00o1's picture
saxplayer00o1
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that1guy's picture
that1guy
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Re: The Coming Second Wave

None of this is surprising to me. I was home (Vegas) this last Nov-Dec, and many areas are like ghost towns...my old neighborhood included.

 

On a side note, that article talks about reprocussions of a hit on your credit, and collections. Frankly speaking, although it may be an annoyance, collectors can only go so far when it comes to getting money. This is maginfied when there is nothing to take, AND one make the apperiance that they are trying to may, even if it is 20$$ a month.

I can also safely say if i was more then 50% underwater on a home (which i am not) i would STRONGLY consider walking away too.

 

Mike

Johnny Oxygen's picture
Johnny Oxygen
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Re: The Coming Second Wave

I think its strange that so many people seem to wrestle with the moral or ethical concerns of this issue. Do they think the banks are wrestling with the morals and ethics of what they do? Wake up! The whole thing was designed to take advantage of you.

Is it morally  wrong to shaft a loan shark?

G-Money's picture
G-Money
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Re: The Coming Second Wave

Another interesting side note is the cottage industries popping up to take advantage of the growing number of foreclosures. I just saw this company the other day - http://www.walkawayclean.com/Home_Page.html. Basically they are playing on people's guilt when walking away from a mortgage.

Go away from; conscious mortgage default; however distinguished from typical walk-away, rather than careless abandonment of property, greatest possible property value is maintained through responsible engagement of property managers, causing the least negative impact on the community.

So basically you contact them when you want to "walk away clean" and they will manage the property for you out of benevolence. They charge no fee but do admit that:

Our revenue sources may range from referral fees paid by service vendors (e.g. repair and maintenance services) to leasing and sales revenue from the properties we manage and care for.

Now I don't know how they would make money by bringing in people to perform maintenance/repairs, and I don't know how they could take any of the sales revenue (since the house now belongs to the bank). So if you read between the lines, there business model is pretty much:

1- Tell us when you're gonna abandon your property

2- We'll lease the property if we can (doesn't matter if we can't since we're not paying anything anyways) and keep the rent

3- The bank will eventually come knocking and kick out the renters - but that could take months, if not years

4- Repeat

gregroberts's picture
gregroberts
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Re: The Coming Second Wave

"I think its strange that so many people seem to wrestle with the moral or ethical concerns of this issue. Do they think the banks are wrestling with the morals and ethics of what they do? Wake up! The whole thing was designed to take advantage of you.

Is it morally  wrong to shaft a loan shark?"

I believe that if you make a contract with anyone including a loan shark and they keep to their side of the contract that you are morally responsible to keep your side of the contract whether verbal or written. Just because some people choose to act unethically does not mean that you can too, some people believe that it's okay to murder people does this mean that now it's ok for you too? Each individual makes their world in their own image, if you are honest, respect contracts, and keep your word you will be able to look in the mirror with pride and not be ashamed. The old saying "that you can't cheat a honest man" is true, a honest man knows that things can't be too good to be true and that the person trying to sell this idea is dishonest.

Now the govt is another story, criminals/politicians make laws to rob the citizens of their wealth so they can live on easy street, here are the creatures you should rail against because you have no choice here, you have a choice with a bank or a loan shark or any private business to make a contract.

pinecarr's picture
pinecarr
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Re: The Coming Second Wave
Johnny Oxygen wrote:

I think its strange that so many people seem to wrestle with the moral or ethical concerns of this issue. Do they think the banks are wrestling with the morals and ethics of what they do? Wake up! The whole thing was designed to take advantage of you.

Is it morally  wrong to shaft a loan shark?

...and hence my belief, "Treat others as you would be treated.   Until they mess with you!"

PacoAhlgren's picture
PacoAhlgren
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Joined: Feb 18 2010
Posts: 8
Re: The Coming Second Wave

I love the fact that the government encouraged residential lending. No, wait. The all but imposed it. What do you do if you want votes? Give people stuff. What do people want? Well... a house would be nice.

And now it's a moral problem if these people just walk away? The whole thing was a house of cards to begin with; you can't blame anyone from cutting their losses and walking away.

People talk about what a free market we live in. This market is about as free as an animal in a zoo. The manipulation and politicization is absolutely abominable. I don't see why anyone suffering from a capital loss WOULD stay in his or her home.

Paco Ahlgren

www.BottomViolation.com

The Evolutionary Ape's picture
The Evolutionary Ape
Status: Bronze Member (Offline)
Joined: May 31 2009
Posts: 62
Re: The Coming Second Wave
gregroberts wrote:

"I think its strange that so many people seem to wrestle with the moral or ethical concerns of this issue. Do they think the banks are wrestling with the morals and ethics of what they do? Wake up! The whole thing was designed to take advantage of you.

Is it morally  wrong to shaft a loan shark?"

I believe that if you make a contract with anyone including a loan shark and they keep to their side of the contract that you are morally responsible to keep your side of the contract whether verbal or written. Just because some people choose to act unethically does not mean that you can too, some people believe that it's okay to murder people does this mean that now it's ok for you too? Each individual makes their world in their own image, if you are honest, respect contracts, and keep your word you will be able to look in the mirror with pride and not be ashamed. The old saying "that you can't cheat a honest man" is true, a honest man knows that things can't be too good to be true and that the person trying to sell this idea is dishonest.

Now the govt is another story, criminals/politicians make laws to rob the citizens of their wealth so they can live on easy street, here are the creatures you should rail against because you have no choice here, you have a choice with a bank or a loan shark or any private business to make a contract.

This captures only part of the story.  Say that loan shark starts to go broke and the cops give him a free pass to break into your home and steal your t.v., furniture, and valuables.  Now would you pay him back? 

Let's not forget some of the same banks that own these homes people are walking away from are same bank that started out with a $700 billion dollar that has ballooned into well over a trillion dollar bailout of our tax money.  I don't know about you but I never signed a dotted line to give that money over.   We're paying them back, and the people that are still honoring that contract are paying them back and then some.  Hell even their children's children get to pay them back.

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