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  • Billinstuart
    replied
    Originally posted by LFBB View Post


    Not really true. Up until a few years ago I loved NJ, 4 real seasons, lots to do great opportunities. Many still love it here, they just think differently then me
    Gotta buddy who says the same thing. It's the rapid decline in the last few years (taxes, crime, taxes) which hastens the decline. Look at David Tepper,

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  • KMac
    replied
    Originally posted by LFBB View Post

    However suing a rock gets you pebbles. If you go BK you have nothing to take.
    Very true.. I actually got into an intellectual debate with a mortgage broker about PMI.. My point was simple: Why sue the home owner for something they do not have? Especially when the PMI covers the default? And, this is an insurance the mortgagor pays for.. So, the lender is "whole".. So, again, why sue?

    "Because that's the way it works"...

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  • LFBB
    replied
    Originally posted by Billinstuart View Post



    People live in Florida because they want to. People live in NJ because they have to.

    Not really true. Up until a few years ago I loved NJ, 4 real seasons, lots to do great opportunities. Many still love it here, they just think differently then me

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  • LFBB
    replied
    Originally posted by KMac View Post

    No, that is not correct. Even with PMI (Private Mortgage Insurance), which pays the original loan off in case of default, you still get sued.. LOL..
    However suing a rock gets you pebbles. If you go BK you have nothing to take.

    Leave a comment:


  • KMac
    replied
    Originally posted by SMLakeBoater View Post
    Short sale can also requires the current owner to sign a loan for the difference in the balance owed and what it was sold for. Further, any amount not made to pay, the IRS looks on as wages earned for the year, and adds to your gross income you need to pay taxes on.
    Yes, forgot all about the taxable income part..

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  • SMLakeBoater
    replied
    Short sale can also requires the current owner to sign a loan for the difference in the balance owed and what it was sold for. Further, any amount not made to pay, the IRS looks on as wages earned for the year, and adds to your gross income you need to pay taxes on.

    Leave a comment:


  • KMac
    replied
    Originally posted by Sans Peur View Post
    There is/was such a thing as a short sale. The bank will allow a sale for less than the amount owed. This was allowed during the 09 meltdown when house values dropped way below what was owned and people couldn't make their mortgage any longer. Some Banks were pretty hard on it and had requirements like proof of hardship letters, job loss and other things. They will hit your credit rating hard and then the credit card companies would fall in line and close those up without notice because of it.

    Even though it did help some people out, it spanked them pretty hard.
    ^^^THIS^^^... If the bank/mortgage holder agrees to the short sale, you SHOULD be able to walk away without being sued for shortfall.

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  • Billinstuart
    replied
    Originally posted by Sans Peur View Post
    There is/was such a thing as a short sale. The bank will allow a sale for less than the amount owed. This was allowed during the 09 meltdown when house values dropped way below what was owned and people couldn't make their mortgage any longer. Some Banks were pretty hard on it and had requirements like proof of hardship letters, job loss and other things. They will hit your credit rating hard and then the credit card companies would fall in line and close those up without notice because of it.

    Even though it did help some people out, it spanked them pretty hard.
    The mortgages are the bank assets. Deposits are a liability. A regulated financial institution cannot give away assets.

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  • Billinstuart
    replied
    Originally posted by Ahoy Vay View Post
    I think the issue may come from the non-bank mortgages. These companies do not have the same regulatory environment to deal with and much less govt oversight. The companies take on riskier credit and lower incomes. If we get to stagflation as many predict, things will tumble including the housing market. Non-bank mortgages make up about 70% of the lending.
    I think this market is very regional. City dwellers moving to the burbs. Burbs moving to safe, lower tax areas. The irony..the more expensive the home, the less likely to have a purchase money mortgage.

    Our market? Yankee retirees. Yankee upper executives working from home. Miami natives moving away.

    People live in Florida because they want to. People live in NJ because they have to.

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  • Sans Peur
    replied
    There is/was such a thing as a short sale. The bank will allow a sale for less than the amount owed. This was allowed during the 09 meltdown when house values dropped way below what was owned and people couldn't make their mortgage any longer. Some Banks were pretty hard on it and had requirements like proof of hardship letters, job loss and other things. They will hit your credit rating hard and then the credit card companies would fall in line and close those up without notice because of it.

    Even though it did help some people out, it spanked them pretty hard.

    Leave a comment:


  • noelm
    replied
    That sounds more like it, I got the idea from a TV "news" segment that kind of indicated cheap houses for sale that people had simply walked away from, and "suggested" that the owners were not responsible for the remaining debt.

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  • KMac
    replied
    Originally posted by noelm View Post
    Not too sure if I understand this correctly, but it appears that in the US, if you can't afford your house/mortgage you can just walk away and the bank sells it for what they can get, but you're no longer liable, is that right?
    No, that is not correct. Even with PMI (Private Mortgage Insurance), which pays the original loan off in case of default, you still get sued.. LOL..

    Leave a comment:


  • LFBB
    replied
    Originally posted by noelm View Post
    If you do so, then you are not responsible for your debt? what are the other ramifications of being bankrupt?

    No credit for 7 years.

    There are several ways of declaring BK here, I've never done any, but the most drastic is when you give up the house and lose your credit. Ways around this is while undergoing the BK don't pay your mortgage for the 2 year process and save all that money, @ $2,500 per month that's 60K you can put towards an owner financed house or some other loop hole.

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  • noelm
    replied
    If you do so, then you are not responsible for your debt? what are the other ramifications of being bankrupt?

    Leave a comment:


  • LFBB
    replied
    Originally posted by noelm View Post
    Not too sure if I understand this correctly, but it appears that in the US, if you can't afford your house/mortgage you can just walk away and the bank sells it for what they can get, but you're no longer liable, is that right?
    You have to declare bankruptcy as far as I know.

    Leave a comment:

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