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What should happen to people who just stop paying but still live there?

http://finance.yahoo.com/news/Owners-Stop-Paying-Mortgage-nytimes-4276925797.html?x=0

A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by

 
sweet-a-kins

Asked by sweet-a-kins at 3:26 PM on Jun. 1, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
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Answers (48)
  • One reason the house is worth so much less than the debt is because of the real estate crash. But the couple also refinanced at the height of the market, taking out cash to buy a truck they used as a contest prize for their hired animal trappers. It was a stupid move by their lender, according to Mr. Pemberton. “They went outside their own guidelines on debt to income,” he said. “And when they did, they put themselves in jeopardy.”


    Sorry, I say toss them out on their asses. The reason they are in the position they are in now is because of their own bad decisions. It's easy to blame it on the bank, but they are mature enough to understand the terms of a contract and add that to the fact that they refinanced to buy a vehicle as a contest prize to give away. They obviously are careless with their money and expect everyone else to pick up the tab. They are thieves, IMO.

    QuinnMae

    Answer by QuinnMae at 3:39 PM on Jun. 1, 2010

  • sweet-a-kins

    Answer by sweet-a-kins at 3:27 PM on Jun. 1, 2010

  • It's basically a new kind of deadbeat thinking. Instead of trying to make payments, they just stop and figure on the fact it could take the mortgage company 6 months or more to actually kick them out.
    mancosmomma

    Answer by mancosmomma at 3:37 PM on Jun. 1, 2010

  • And more to the point, this part of the article is what leads me to say that they are thieves:


    The couple owe $280,000 on the house, where they live with Ms. Reboyras’s two daughters, their two dogs and a very round pet raccoon named Roxanne. The house is worth less than half that amount — which they say would be their starting point in future negotiations with their lender.


    “If they took the house from us, that’s all they would end up getting for it anyway,” said Ms. Reboyras, 46

    QuinnMae

    Answer by QuinnMae at 3:40 PM on Jun. 1, 2010

  • I don't understand how they think its OK to just stop paying and still live there and put money into vacations, dinners out their business etc...They are talking about the crash..well a part of our economy that is ailing is real estate...and its bad enough with people wgo CANT pay ....now it is further strained by people who CHOOSE to stop paying,,,

    sweet-a-kins

    Answer by sweet-a-kins at 3:41 PM on Jun. 1, 2010

  • A friend's brother did that. He was making enough to make the payments, but the property had lost value. So he stopped paying. He didn't save any money while he lived there rent-free, figuring he could move in with his GF once he had to move out of his house. GF kicked him out a few months later, and now he is homeless.

    What an idiot.
    mancosmomma

    Answer by mancosmomma at 3:50 PM on Jun. 1, 2010

  • I don't understand how they think its OK to just stop paying and still live there and put money into vacations, dinners out their business etc...They are talking about the crash..well a part of our economy that is ailing is real estate...and its bad enough with people wgo CANT pay ....now it is further strained by people who CHOOSE to stop paying,,,


    I rarely agree with you but I do on this topic. I read that article earlier and was floored by the entitled attitude. No doubt banks did some bad deals but no one put a gun to anyone's head and told them to take out a mortgage.
    momtolucas2002

    Answer by momtolucas2002 at 4:07 PM on Jun. 1, 2010

  • Completely agree with Sweet *ducks....:o)*
    mamakirs

    Answer by mamakirs at 4:12 PM on Jun. 1, 2010

  • Lots of that agreeing going on today. LOL
    mancosmomma

    Answer by mancosmomma at 4:26 PM on Jun. 1, 2010

  • Lots of that agreeing going on today. LOL

    ***
    ...slowly raises hand *gasp* in agreement with Sweets!!! (shivers) LOL :o)
    LoriKeet

    Answer by LoriKeet at 4:39 PM on Jun. 1, 2010

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