Asshole DUmmy with horrible credit walks away from huge mortgage

[shadeaux]

 

frazzled  (1000+ posts)      Wed Sep-07-11 05:37 PM

Response to Original message

330. I hate to be the cynic in the room, but ...

 How do we know the OP is even telling the truth? What if he is James O'Keefe, pulling a "pimp walks into Acorn" stunt here? We know nothing about each other here: you don't know me either.

This may be a perfectly legitimate story, but it also could be a ruse to get reactions from people. Which we could then see published.

My reaction, if it is true? I don't think not understanding that with a conventional 30-year mortgage you pay mostly interest for the first years is an excuse for anything. That is not being tricked. That is not what the subprime scandal was about. This person was not a victim. They're not saying that it is mostly because of mounting medical bills (is he/she insured?--no? didn't understand you need to buy health insurance, too?). They're not saying they lost their job. Maybe this person shouldn't have bought the home; maybe the bank shouldn't have made the loan; maybe they got in over their head. I have sympathy that they apparently didn't understand a thing about home ownership. I'm sorry they had to declare bankruptcy. But I don't see this person as a victim. 

[Crazy Horse]

H5!  I too did a 100% loan, but got a fixed rate, 4.75, on a nice little house that needed some fixing up...oh I could have gotten a McMansion, half-million dollar home, but I figured, I don't even make a quarter-million dollars, why would I spend that much?? 

Don't you think if this dumbass "didn't understand what he was getting into," he should have WALKED AWAY FROM THE DESK.  He should have not signed until he DID understand?  Freakin' idiots! 

Hell I did 100% +3 on the VA, it's what was feasible.  I tried to get that 8k but wouldn't buy just to buy in time, 1 month later.  Thank god, as I was 1.5 percentage lower when I found this house.  Matter of fact this house was on the market less than 24 hoiurs before being under contract (included original and counter offers).  They never even got the sign in the yard.  

I read everything and when I got the "don't worry about it" I replied, "No, explain it"  Sounds like that's what frigginDUmbass should have done.

[cmypay]

Hell I did 100% +3 on the VA, it's what was feasible.  I tried to get that 8k but wouldn't buy just to buy in time, 1 month later.  Thank god, as I was 1.5 percentage lower when I found this house.  Matter of fact this house was on the market less than 24 hours before being under contract (included original and counter offers).  They never even got the sign in the yard. 

I read everything and when I got the "don't worry about it" I replied, "No, explain it"  Sounds like that's what frigginDUmbass should have done.

We ended up going with a conventional because we could get a better rate that way than with the VA.  What shocked me is we were pre-approved for $285,000! Looking at our finances, I could not figure out how the banks thought we could actually make that kind of a loan payment.  We found this one for $150,000 and it has character! Like yours, less than 24 hours on the market. 

My husband and I read every single word in the loan documents, asked for explanations, even asked for wording changes on things we disagreed with. There is NO WAY I would sign any contract without reading it

[Skul]

I seem to recall, that even if they walk away, they are still liable
for the difference of the remaining mortgage, minus whatever the "bank", sells it for.
Is that true?

[Tucker]

I seem to recall, that even if they walk away, they are still liable
for the difference of the remaining mortgage, minus whatever the "bank", sells it for.
Is that true?

For 10 years.

[USA4ME]

phrigndumass

Had to let the flood insurance lapse when I was on disability and put the house on the market. I figured there hadn't ever been a flood there, and I couldn't afford it, so I let it go. Bad move on my part.

Why would anyone buy flood insurance if their property isn't designated as being in a flood plain?  Might as well insure a dead horse.

Something fishy about the whole tale.

.

[Skul]

For 10 years.

Xnks, Tuck.

[Evil_Conservative]

It's nice to read shit like this while my husband & I are working hard to save up money for our down payment.  Thanks for making house prices just little bit cheaper and the loan harder to get.  We appreciate it. 

[Texacon]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1888526#1888538

phrigndumass  (1000+ posts)        Tue Sep-06-11 07:27 PM
Original message

In 6 years, I've paid $70,000 to my mortgage companies ...
 
And today I walked away from it all. I've moved out, left the keys and appliance manuals, turned off the power, and called the mortgage companies to tell them they better hurry up and insure the property and change the locks, because I've abandoned it. Oh, and I'm declaring bankruptcy for protection (partially due to the mounting medical bills, but mostly due to the mortgages).

Of the $70,000 paid to my mortgage companies in the last 6 years, only $2,000 went toward principal. The other $68,000 went toward interest. I don't feel one ounce of guilt.

There's no need to feel guilt ... I'm the victim. If guilt is holding you back from leaving an unfair mortgage situation, I urge you to look at how much you've already paid your mortgage company, toss the guilt aside and free yourself.

A huge weight has been lifted off my shoulders today.

Peace.

Sven

 

A huge, huge, HUGE thread I don't have time to dig through but what I've seen makes me ill.

KC

[Erasmus]

phrigndumass  (1000+ posts)        Tue Sep-06-11 07:27 PM
Original message

In 6 years, I've paid $70,000 to my mortgage companies ...
 
And today I walked away from it all. I've moved out, left the keys and appliance manuals, turned off the power, and called the mortgage companies to tell them they better hurry up and insure the property and change the locks, because I've abandoned it. Oh, and I'm declaring bankruptcy for protection (partially due to the mounting medical bills, but mostly due to the mortgages).

Of the $70,000 paid to my mortgage companies in the last 6 years, only $2,000 went toward principal. The other $68,000 went toward interest. I don't feel one ounce of guilt.

There's no need to feel guilt ... I'm the victim. If guilt is holding you back from leaving an unfair mortgage situation, I urge you to look at how much you've already paid your mortgage company, toss the guilt aside and free yourself.

A huge weight has been lifted off my shoulders today.

Peace.

Sven

No, you're not a victim.  You're the cause of the problem.  $70,000 of payments and only $2,000 of principle paid?  I'm calling BS on his numbers.

$70,000 of payments in 6 years is a mortgage of about $972.00 per month.  This may have been interest-only for 5 years or something stupid in which case he isn't the victim, he's just a greedy moron.  However, if it wasn't an I/O loan, the numbers just don't work out.  7 years ago, you could have gotten a mortgage at a 6% rate easily.  Lower 5's was more common.  If it was a 30 year fixed, he still would have paid more than $2,000 of principle in 6 years.  His numbers don't jive.

[Rugnuts]

he says hes paid $70,000 to his mortgage "COMPANIES"
if he refinanced say 6 times, once a year, he could be adding the closing costs into what he paid.

i know it looks like im sticking up for him, but im just saying its probably possible. but your right. it is his own fault for whatever type mortgage he agreed to.

[Erasmus]

he says hes paid $70,000 to his mortgage "COMPANIES"
if he refinanced 6 times, he could be adding the closing costs into what he paid.

i know it looks like im sticking up for him, but im just saying its probably possible. but your right. it is his own fault for whatever type mortgage he agreed to.

That's possible.  Or the mortgage was sold.  Even with refinancing, it would have to have been an interest-only loan, otherwise it would have been a relatively SMALL mortgage, not a "huge mortgage".