walk away from your mortgage

[jk]

website of the week:

http://www.youwalkaway.com/




edit: i found this in a comment on russ winter's blog. now i see it at barry ritholz's and apparently mish is on it too.

[metalman]

Re: walk away from your mortgage

website of the week:

http://www.youwalkaway.com/

edit: i found this in a comment on russ winter's blog. now i see it at barry ritholz's and apparently mish is on it too.

cute! cuter if they'd seen it in detail coming four years ago. the late arrivals to the scene don't get it. ask them, what next? deflation they say. always the same WRONG thing. what a pack o' total asshats. entertaining, tho.

i can't believe how spot on steve forbes has been. maybe ej can interview him.

gold $924. i want to know which funds are buying. no way joe sixpack is moving this market. he's broke. poor bastard, joe. no money. stuck with debt... no $$$ to buy gold or anything to keep his savings from going up in smoke. oh, ya. i forgot. he doesn't have any savings.

wonder who he's going to vote for? probably some asshole who will screw him even more than all the other assholes combined.

[dbarberic]

Re: walk away from your mortgage

website of the week:

http://www.youwalkaway.com/




edit: i found this in a comment on russ winter's blog. now i see it at barry ritholz's and apparently mish is on it too.

Amazing....

If people in mass start walking away, the losses in the mortgage market become "real". It is a lot easier to hide the problem as long as you can convience people to stay put and continue making adjusted payments. However, once they stop completely, it is a classic "break in the chain of payments" that Dr. Michael Hudson talks about.

[grapejelly]

Re: walk away from your mortgage

In states with non-judicial foreclosure, like California, they cannot come after you if they foreclose. They have to take what they get.

But the second mortgages have been written with no equity and they are not foreclosing. That leaves them with "one remedy" left -- they can sue you in court up to four years later for breach of contract.

I expect hundreds of thousands of these lawsuits to be filed.

Walking away in this situation has its risks.

[bill]

Re: walk away from your mortgage

Will walking away in large numbers trigger a “short refinance?”
If Itulip gets a winner http://www.itulip.com/forums/showthread.php?t=2247 it may just work.

http://biz.yahoo.com/brn/080117/24211.html?.v=1

Will your lender let you do a short refinance?
Thursday January 17, 6:00 am ET
Holden Lewis

[swgprop]

Re: walk away from your mortgage

But the second mortgages have been written with no equity and they are not foreclosing. That leaves them with "one remedy" left -- they can sue you in court up to four years later for breach of contract.

I expect hundreds of thousands of these lawsuits to be filed.

Walking away in this situation has its risks.

I Disagree. In the current environment lenders and servicers are being vilified for the housing "crisis" for just following SOP - foreclosing when the payments stop coming in.

If they were to begin aggressively pursuing deficiency judgments where allowable it would be a public relations nightmare - and would undoubtedly incite legislation to extinguish it as an option.

Additionally, as dumb as you may think lenders/servicers are, they generally are not going to throw good money after bad. The ROI on pursuing judgments against defaulted homeowners simply won't pan out.

More likely once the security instrument on the second is wiped off title by the foreclosing senior, the still intact debt will be farmed out to collection agencies. The defaulting borrowers may be hounded but probably not sued.

[Slimprofits]

Re: walk away from your mortgage

"Walking Away" was covered by 60 Minutes this past Sunday:

http://www.cbsnews.com/sections/i_vi...ml?id=3756665n