Maybe we should all stop paying our mortgages

[vinoveri]

http://www.bloomberg.com/apps/news?p...wBS8KYq8&pos=2

[don]

Re: Maybe we should all stop paying our mortgages

Feb. 25 (Bloomberg) -- The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.

What a hairball this would be! The banks' shadow inventory more than doubles the 'admitted' foreclose/MLS numbers in many areas. When half your street's in mortgage trouble, and gets a pass, how do you feel, sailor! And if this was anything more than a rubber stamping of foreclosure delay, what kind of new federal agency would it take to admin this colossal mistake.

“This is a problem of mammoth proportions.” Laurie Goodman, senior managing director at Amherst Securities Group LP in New York

You said it, kid :eek:

[cjppjc]

Re: Maybe we should all stop paying our mortgages

Well this makes it official. It is no longer wrong to stop paying your mortgage. I want to apologize right now for anything I had previously said on this subject.

Right and wrong have become such a fast moving target. When the history of this time is written, the authors will need to be very generous.

[phanatic]

Re: Maybe we should all stop paying our mortgages

The measures our politicians take to keep people in houses they cannot afford never ceases to amaze me. What I haven't figured out yet is why. Are they merely trying to buy votes (even though a good portion of the people would be better off allowing the foreclosure to happen) or are they trying to prevent a necessary correction in housing prices because that would destroy 1/3 of the FIRE economy? Probably the latter, but I'm trying not to be so jaded to believe that is the reason, or maybe I'm just being naive.

[sunskyfan]

Re: Maybe we should all stop paying our mortgages

I feel like such an idiot paying off all my debts, selling my house at the right time, getting out of the market when it was stupid to stay in, taking care of myself, paying my high health insurance premiums, and paying for my kids college. If I only knew right was wrong and down was up.

[MulaMan]

Re: Maybe we should all stop paying our mortgages

Stop paying your mortgage, live free for a few years, and then walk away.

That is what the smart is doing.

If I was a college kid, I'd purchase a condo near school, rent out a room to pay off my beer budget, and live rent free until the bank kicks me out, try to through collage rent free.

[cmalbatros]

Re: Maybe we should all stop paying our mortgages

On a personal note. I lost my job in November and am now to be 3 months behind in house payments, tried to get the FHA-HAMP modification to find, to my horror, that I don't have enough debt , DTI ratio below 31%, to qualify. Present income sources are not even considered thorough this "Fix" and being fiscally responsible doesn't count for squat, but being a consumer driven debt slave does. There will now be a way for banks to hold off on putting bad loans on their books and to legally "steal" homes and cash in the debt for full price (paid for with tax payer money) as not many people will get their loans modified. Was a TB&W loan now owned by BAC using "TARP" funds.

[audrey_girl]

Re: Maybe we should all stop paying our mortgages

is there a word in English or any other language that conveys the meaning of "insane" and "obscene" at the same time?

we could really use such a word at this time

[Sidewinder]

Re: Maybe we should all stop paying our mortgages

is there a word in English or any other language that conveys the meaning of "insane" and "obscene" at the same time?

we could really use such a word at this time

How about T A R P ?

[sunskyfan]

Re: Maybe we should all stop paying our mortgages

I think the term you are looking for is "perverted".

[don]

Re: Maybe we should all stop paying our mortgages

Sociopath does quite well in describing "we are a person" oligarchic behavior.

[ThePythonicCow]

Re: Maybe we should all stop paying our mortgages

is there a word in English or any other language that conveys the meaning of "insane" and "obscene" at the same time?

we could really use such a word at this time

thesaurus.com lists only one word in the synonyms for both insane and obscene.

That word is 'irrational'.

Somehow that word seems inadequate to this present task.

[Sharky]

Re: Maybe we should all stop paying our mortgages

thesaurus.com lists only one word in the synonyms for both insane and obscene.

That word is 'irrational'.

Somehow that word seems inadequate to this present task.

I like "irrational."

"Immoral" also works for me.

[zoog]

Re: Maybe we should all stop paying our mortgages

Some details on the eligibility requirements. Some of these things might be changed under the new proposal, this is the existing HAMP program.

Current housing expense-to-income ratio > 31% (as mentioned by cmalbatros). The program targets this ratio, e.g. if your current ratio is 45% they will try to reduce your monthly payment to achieve a 31% ratio. The payment is reduced by lowering the interest rate, with a minimum resultant rate of 2%. If your ratio is already less than 31% then you will not qualify.

If debt-to-income ratio > 55% you must enroll in credit counseling.

No minimum LTV ratio.

Maximum mortgage on 1-unit property: $729,750, 4-unit $1,403,400.

Must be owner-occupied, primary residence; not abandoned, vacant, or condemned.

Cash reserves < three times current PITIA (principal, interest, taxes, insurance, association dues).

Debt Coverage Ratio < 1.20 - DCR = Disposable Net Income / PITIA.

[reallife]

Re: Maybe we should all stop paying our mortgages

I stopped paying my mortgage in May 2008. Now I rent with cash. I recommend you all do the same. :rolleyes: