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Housing Crisis

My neighbor refinanced their house when the housing was good. They then used the money to build a new larger house. Now that their house is built, they have decided to just let the house across the street from us go into foreclosure. This makes me so angry because we were thinking about trying to sell our house and now with their selfishness, our home value will go down. My question is if there is a housing bailout are they going to be able to take advantage of that? If so that just seems so wrong to me.

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KathMW

Asked by KathMW at 7:49 PM on Nov. 7, 2008 in Politics & Current Events

Level 1 (3 Credits)
Answers (11)
  • They might want to be careful because they could wind up with a lien on the new house!!! The bail out isn't going straight to the borrowers at this time. It is just going to the banks. Nice isn't it?
    mamakirs

    Answer by mamakirs at 8:04 PM on Nov. 7, 2008

  • I really don't have a full understanding of that aspect of the bailout plan. I know that the idea of bailing out those bad mortgages has been floated, but haven't honestly kept up on it from there.

    That said, I can understand where you're coming from...there are five homes on our street that are now in foreclosure. We just moved out here a year ago, and would like to move back to our home state in approximately three to five years, but we'll have to see what that will do to the value of our home.

    That is a very selfish attitude on their part, though, to allow their home to go into foreclosure. My dad actually works with a guy who's doing the same thing.
    MammaMiaMA

    Answer by MammaMiaMA at 8:34 PM on Nov. 7, 2008

  • what should they have done? they didn't know how the market would end up and they just wanted bigger and better. thats what we hope to get out of our home when the market picks up again. hundreds of people have done this of no other choice. maybe they couldn't find a renter or felt not worth it. i think the bailout will only be for the banks. i don't think that they would be able to do it for every house cause they wouldn't be able to predict the amounts that will continue to come in. to many problems with that but with the bailout they could probably work their bank but sadly most people think they are stuck with what they signed when banks are willing to work out payments on a temporary basis.
    melody77

    Answer by melody77 at 9:15 PM on Nov. 7, 2008

  • They haven't even tried to get a buyer or renter.
    KathMW

    Answer by KathMW at 9:31 PM on Nov. 7, 2008

  • I think thats just stupid. In my opinion its people like that that have put this country where it is now. They borrowed against thier home, built a bigger- better one, and are going to let the previous one foreclose. Thats soo f'in greedy. I understand wanted newer, nicer things- but what ever happened to people stepping up and taking some responsibility for what they said they were going to do? I hear so much on hear that people "signed a contract, and need to uphold it" and they do! Why do people think they can just have these "Get out of Jail Free" cards!! Come on, they need to at least look for a renter or something before they just throw it to the curb for others to lose money out on.
    BabyBeans0506

    Answer by BabyBeans0506 at 10:28 PM on Nov. 7, 2008

  • Won't that hurt their credit? I don't know how mortgages work- but I know with a credit card, if you miss a payment on one card they could jack your interest rates up on a different card. That's sad that they are letting the house go.
    EricaAbbott

    Answer by EricaAbbott at 10:35 PM on Nov. 7, 2008

  • Well I do understand where you are coming from. I been there done that I did lose my house to foreclose. But I could afford the payments and the taxes I could not afford the insurance that went from 300.00 for house to 500.00 for flood to 6000.00 dollars three years later. When we try buying the mortgage out or short sell it, the lender won't not budge worth anything. They would not take our 100,000 for the house but two years later they sold it for 20,000. I bet they did try to do things to save their home however the mortgage company would not work with them. It sucks but I lost my house because of the masses of increase in insurance I could afford the payments that was no big deal.
    pandermom

    Answer by pandermom at 11:09 PM on Nov. 7, 2008

  • Aren't those people worried about their credit?! They can't just let their house foreclose and act like nothing happened. It will be a huge marr on their credit history.
    It will be like that Tide Pen commercial... where the stain is shouting while the guy is talking. Your neighbors will be somewhere in 5 yrs trying to get a loan, and despite all their talk, all the banker will hear is BLAH! BLURBEEPATHHHHUPT! Coming from their credit report...
    brandyj

    Answer by brandyj at 1:31 AM on Nov. 8, 2008

  • I had a friend who had a mobile home with land go to foreclosure and after the place was bought at a VERY low cost, the bank tried to go after him for the balance...I tell you, if they let this house foreclose they better NEVER getting credit for a bout 7 years!! NO ONE will touch them. Even utility companies can demand a security payment. They will SO screw themselves!!!
    WAganma56

    Answer by WAganma56 at 2:54 AM on Nov. 8, 2008

  • That doesn't seem like a smart move at all. What about their credit? They could have a lien as a PP mentioned -- on their new house. I hope they like the new house because they certainly won't be moving any time soon. I'm sorry to hear about your situation tho :(. Having your home values go down stinks. A home foreclosure on your record (whether you could help it or not) is a VERY HUGE THING.
    KnoxvilleDoula

    Answer by KnoxvilleDoula at 1:15 PM on Nov. 8, 2008

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