On a gloomy day with GM's woes, a bit of hope as stocks surge.

[greg334]

If I had done a max cash out refi I could have paid cash for another house even a better one then walked away from mine and left the morgage co holding the bag. Then go bankrupt and have no morgage at all.

OK there is a little thing called a disclosure of assets that is needed to be filled out and if you lie, you lose.

I know a few who did this and amazingly they got caught for some reason and the courts said "seizure of that asset to pay the creditors. oh and it is a felony so you get to another type of court"

See Doug the problem is if you know this happens, you should be p*ssed off so much you call the feds simply because it is you and your kids that is paying for all of it, not the banks or even the fed for that matter but you and your children.

What divides up the people in the parties is little things like that. Most of the people who work hard, will not turn the other way and play by the rules seem to fall on the right side of the aisle but the other side seems to like to cheat the system, even when they are part of the system.

 

[DougTravels]

I don't believe they broke any laws, 1 I know of went bankrupt he had to show that he had a house. When bankrupt they don't ususally come after your home unless it is an upscale home.

My point was just that many who "lost" their homes really did not.
Many owed far greater than the value of it and walked away.

 

[greg334]

I don't believe they broke any laws, 1 I know of went bankrupt he had to show that he had a house. When bankrupt they don't ususally come after your home unless it is an upscale home.

My point was just that many who "lost" their homes really did not.
Many owed far greater than the value of it and walked away.

When you borrow and then take the money and buy another home and then go into bankruptcy without saying you have thehome you bought with the money you borrowed, it is called fraud. Hiding an asset from the court is a no no because regardless bankruptcy is not there so you can run up the bills or buy thing when you borrow against another asset so you can run away. The court can and does take the assets away to pay the lender, it is part of their job to recover or arrange to recover as much as possible for the lender or debt holder.

Most of the people who have "lost" their homes have done so by being greedy, taking on the debt with ARMs and all kinds of screwed up loans. I am not speaking of the couple who struggle to make ends meet with their $65k home but the people who think the American dream is a 3000 sq ft home in a planned commubnity where you can't own a pickup, that is most of what the media and Obama are concern with. It always comes back and bites people on the a**. My sister-in-law is a perfect example, they bought a vacation home on an ARM and the interest rate increased to something like 12%. She is trying to pass the thing off as a regular home to refinance it and that is wrong. It is vacation property, it is used 8 weeks out of 52 because they work for DTE and get two months vacation.

 

[DougTravels]

From what I understand is they claimed the new home was their residence and claimed it as an asset. They will not take a modest single home in a bankruptcy.

My point was and still is that the number of people "losing" their homes is inflated. Whether they got a new home or moved into an apartment some simply looked at their mortgage being much greater than the homes current value and decided to walk away from it.

 

[greg334]

My point was and still is that the number of people "losing" their homes is inflated.

Yes I agree, and you are right. The root of this is greed Doug, when people could get into a 2500 sq ft $500k home for cheap, they got it thinking that the value never would go down and could sell at a profit. But if you look at housing pricing history, housing always adjusted itself and for 60 plus years it never had such a climb as it did since the mid-90's. People got greedy, that's all.....