OFFLINE

http://www.comcast.net/video/million_dollar_foreclosures/1773457871/

So what do you think, is this a Failed Investment, or an Obligation that 'must' be repaid?

I don't feel that his staying in the home while refusing to pay his monthly payments is an ethical thing to do. But can you blame him?

OFFLINE

He entered into a contract with his mortgage holder to pay them in exchange for the loan.

Just because it went south doesn't relieve him of his responsibility.

(FWIW, I also own an "upside-down" home.)

OFFLINE

It's definitely an obligation that must be paid...he bought it when it was higher....so what that he lost money...that's HIS problem for buying such an expensive home!  I don't feel sorry for people who want to live "high on the hog" and then have issues.  

Scott...wth is an upside-down home????  When we bought our house....we figured we would purchase a home that would be able to be paid for with my hubby's income ONLY.  Because of that....we have always been on time/early with our mortgage payments.  This is how everyone should be purchasing any large ticket items.  

Having worked in banking (at the time in a department called RBD -- Reserve for Bad Debts) I saw firsthand, how many people would purchase a car/truck/boat/trailer way out of their price range, knowing that they would never be able to keep up with the payments.  Everything works out for about six months...then things get behind...and they default...and then the property gets repossessed.  The sad truth of the matter is that a number of these people are "lower class" and don't know any better.  So, after the property goes to auction (and the highest price is obtained) -- they figured they could wipe their hands clean of it. Unfortunately, then they would get a call from our department telling them that they still owed over $5,000 and didn't have the property any more.  

OFFLINE

You're "upside-down" when you have a mortgage that's higher than the value of the home ... I can't sell it so I have to keep it and keep my fingers crossed that the market recovers.

It's an artifact of the real estate balloon popping.

Thanks Barney!

OFFLINE

OFFLINE

I think its beyond ridiculous that he's been living there for two years without paying. Nobody forced him into that decision and he's certainly not the only person who's purchased a house and had the value go down.....just another person who refuses to live up to their responsibility and is finding any reason in the world to rationalize it.

...it makes my head crazy to think about this so I'm not going to anymore.

OFFLINE

I'm with you Wendy ... this makes me crazy !

How about the loans that that offered up to 120% of the value of your home that were popular several years ago ?  Yeah shame on the banks for sucking people into this BUT shame on folks for not putting pencil to paper and using some simple 2nd grade math.  Ummm, this does not compute.  

OFFLINE

One thing that gets me is; if this were merely a 40k home, the banks might not have hesitated at all to foreclose. I can understand the banks not wanting to foreclose on a million+ dollar home that they'll likely have to sit on indefinitely, but I think he's grossly abusing the system by staying there basically rent free. As far as I'm concerned, that's theft and he ought to face the crime accordingly. One thing I'm not sure of is; what all might be escrowed into the mortgage? So is he likely ripping off the insurance company too?

OFFLINE

Originally Posted by Scott Terry:

I absolutely can NOT stand this dude :/

That's all I'm gunna say!

OFFLINE

You guys are having a rough financial time in USA!

OFFLINE

Originally Posted by Emma Eldridge:
You guys are having a rough financial time in USA!

Sometimes I think financial hardships are far more difficult for the wealthy because they're not used to being poor or facing the threat of becoming poor, and so many of the poor are used to being poor, being treated like they're poor, and thinking they're destined to stay poor, so it's just business as usual for them.