"Strategic default" a griowning problems for home mortgages

If banks weren't trying to be so damn greed and would be willing to work with people more defaulting or abandoning wouldn't be happening so much. But the banks rule the U.S.
 
How should a bank work with someone? By reducing your mortgage payments to match the current lower value of your home? Then they'd be losing money. (assuming that's why the person is choosing to default, as opposed to simply not being able to afford the home anymore)
 
April23 said:
I was under the impression that a short sale was not as bad as a complete default on your credit. They put settle for less than the balance or some shizz.
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AND - once you agree to the short sale, you've also agreed that the difference between the amount owed and the sale price is personal income to you.

ie:

$300,000 mort
$225,000 shortsale accepted by lender

means you've just added $75,000 1099'd to your personal income that year that you owe tax on.
 
Sarcasmo said:
How should a bank work with someone? By reducing your mortgage payments to match the current lower value of your home? Then they'd be losing money. (assuming that's why the person is choosing to default, as opposed to simply not being able to afford the home anymore)
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They'd still be getting more money than if no one was giving them money at all on a place.
 
Amstel said:
AND - once you agree to the short sale, you've also agreed that the difference between the amount owed and the sale price is personal income to you.

ie:

$300,000 mort
$225,000 shortsale accepted by lender

means you've just added $75,000 1099'd to your personal income that year that you owe tax on.
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Not until the Mortgage Debt Relief Act expires in 2012...
 
b_sinning said:
If banks weren't trying to be so damn greed and would be willing to work with people more defaulting or abandoning wouldn't be happening so much. But the banks rule the U.S.
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they have loan modifications now.

problem is, people owe alot more than the house is even worth, so who wants to keep it?


also, banks aren't approving a whole lot of short sales right now. and even if they do, they can come back on you with a judgement for the difference between your loan and what the house sold for on a short sale...
 
plot said:
also, banks aren't approving a whole lot of short sales right now. and even if they do, they can come back on you with a judgement for the difference between your loan and what the house sold for on a short sale...
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Generally its written into the sale contract that they cannot, unless you're an idiot.
 
fly said:
Generally its written into the sale contract that they cannot, unless you're an idiot.
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i dont think you understand, the bank has you by the balls at this point. there's no negotiating... no 'writing addendums' to the contract. it's a yay or nay situation.

its not some magical way to screw over the banks.
 
plot said:
i dont think you understand, the bank has you by the balls at this point. there's no negotiating... no 'writing addendums' to the contract. it's a yay or nay situation.

its not some magical way to screw over the banks.
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This.
 
plot said:
i dont think you understand, the bank has you by the balls at this point. there's no negotiating... no 'writing addendums' to the contract. it's a yay or nay situation.

its not some magical way to screw over the banks.
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The hell they do. By that point your credit is already screwed. They can either accept the offer or own it. Which do you think they'd rather do these days?
 
fly said:
The hell they do. By that point your credit is already screwed. They can either accept the offer or own it. Which do you think they'd rather do these days?
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If I were a bank I'd go after obtaining a judgement to make an example. Sheriff sale's are fun.
 
ZRH said:
If I were a bank I'd go after obtaining a judgement to make an example. Sheriff sale's are fun.
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That's expensive and like the lottery tho...rarely will the bank get their money back from a person that does not have any.
 
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