 |
Business Directory |
 |
|
|
|
|
|
|
|
Coupons |
|
|
|
|
|
|
 |
Classifieds |
 |
|
|
|
|
|
| | Author | Messages | |
thick
Posts:615
 | | 09/03/2008 10:34 PM |
 Alert | | While I personally would not casually walk away from a home and trash my credit just to go to a ball game, I can understand someone making this informed decision if it's what's really best for their family. What I find despicable is flat out defaulting on the loan and pocketing the money until the bank evicts you. That is just dishonest, and in my mind stealing. | | | |
|
| | asugrl
Posts:700
| | 09/04/2008 1:04 AM |
Alert | Posted By gizmo on 09/03/2008 10:09 PM Posted By asugrl on 09/03/2008 6:47 PM
I hope you can pay cash for everything from now on, and don't need to get a loan anytime soon. Have fun. Isn't it best to only pay cash for everything anyway? Seems to me like the safest route to take in buying anything is if you can't afford to pay for it with cash, then don't buy it! This would stop alot of the dumb decisions that folks are making these days. By the way, I am not a proponent of walking away from a house. I am just stating the laws of Arizona and the federal government. Its nice when folks have all the info in hand before they make decisions. Its also fun getting you folks stirred up. Its fun and thats the way I roll. I am referring to getting a car loan, mainly. And while it is best to pay cash, it can be very convenient to be able to have a decent car that you can pay for monthly without a terrible interest rate. Not everyone can save up $10,000 cash for a car, so when you do need a new one, it is convenient to have decent credit. The same goes for school loans, without which some people would never be able to afford an education. | | | |
|
| | LeonPotter
Posts:622
| | 09/04/2008 7:03 AM |
Alert | I don't think NOT getting a long is a terrible thing. Cash is the way to go. Afterall, the idea is to repay plus interest. If one could only wait, the money they would have been spent could be saved EARNING interest, then used to make the purchase when all the funds are available.
I don't believe one needs student loans to get an education for the reason I stated above. Nothing says one can't save(earning interest) then pay or pay as you go.
I won't be taking any student loans for my children. I'm completely against them taking on student loans or any loans. They know that now. Doesn't mean they won't have opportunites for education. To the contrary, they'll have a can further their education without being burdened with the debt that would be waiting for them. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
|
| | asugrl
Posts:700
| | 09/05/2008 3:13 AM |
Alert | | That's great, but that requires you having money to save to earn interest from. My parents did not, and I applied too late for scholarships. I would have had a full ride due to my grades in high school; in fact, ASU would have paid me monthly to attend, but I didn't apply until the last minute, so all the scholarship money was gone. I found it much harder to get one during college. Trust me, I am kicking myself for it now. However, a student loan is far from the worst debt you can get into, and I am just stating that ruining your credit, however little you use it, is never a good thing. | | | |
|
| | LeonPotter
Posts:622
| | 09/05/2008 8:06 AM |
Alert | Posted By asugrl on 09/05/2008 3:13 AM
That's great, but that requires you having money to save to earn interest from.
That's exactly my point. Save the money. The common idea is one needs a loan to do anything. The cycle of borrowing IS the hurdle. Break the cycle of borrowing and make it a cycle of saving, the difference is tremendous. I have CHOSEN to break the cycle. Anyone can do it. The temptation of having something now or the fear of never obtaining it is overwhelming, however it is MORE costly and adds unnecessary risk. Thus, financial independence is harder to obtain if obtained at all. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
|
| | itsadryheat
Posts:255
| | 09/05/2008 3:32 PM |
Alert | Not that this is the case here...but, when did we become a nation of entitlement. Everyone feels like they are entitled to something or other that they didn't work for or earn. I admit, I have fallen into that trap too. But, there are a lot of people who cannot go to baseball games, football games, or have do fun things...their children go to the local schools, can't join band, can't play in a sport, because there just isn't any money to do those things, yet, they perservere. I don't get it.
And wha a life...wouldn't you be afraid that every time you opened the door the sheriff would be standing there? Who said it take a year for a foreclosure to go through? This may be true, I don't know...but what a life to live. | | | |
|
|  |
OldTownCopa
Posts:63
| | 09/05/2008 11:52 PM |
Alert | On average, at least in Maricopa County, it takes about a year for someone to be evicted from their home due to foreclosure. There has to be a trustee's sale (which essentially removes the homeowner's name from the deed and replaces it with the bank's), then the bank sends you a notice stating that the sheriff's department will be arriving on a specific date, which then means you have to vacate the house before that date.
Foreclosures have a very specific and tedious legal process that has to be completed first before the homeowner is evicted. Once the trustee sale has occured, eviction usually comes a few months after that. You know when your eviction date is, so there's no wondering if the sheriff will be waiting at your house when you get home from work. They won't be there until the very end. | | | |
|
| | NY2Copa
Posts:144
| | 09/06/2008 8:41 AM |
Alert | | Want to go to sporting events and not break the bank??? How about the football games here at our high school? You'll support the H.S. and get your football fix without spending a ton of money for tix and gas. Then after football there's basketball and so on. It's fun, for a good cause and may be a good comprimise to stay in your house and adjust what you consider "funny money". We are on a "Pay off all debt" 5-step plan .... I'm not saying it'll be a quick thing, because our plan includes our mortgage ... but that is our goal. It may be a better option than walking away when it's not absolutely necessary. Instead of brand new clothes we go to SAVER'S and buy name brand stuff for literally a fraction of the cost. Lucky Brand jeans for $12.99, GUESS shoes for $5.00 .... And the money for our purchases goes to charities like breast cancer foundation, Big Brother's Big Sisters (etc.) I'm just saying there are ways to get the "fun fix" and "shopping fix" without charging and going into debt and maybe even do some good. | | | |
|
| | Hunter
Posts:121
| | 09/06/2008 9:13 AM |
Alert | | I love that the OP posted this but has not come back to explain further or anything since. | |
"Nobody cares if you're miserable, so you might as well be happy" | |
|
| | NancyReagan
Posts:52
| | 09/13/2008 8:33 AM |
Alert | The original poster will be in for a big surprise if he goes this route. His mortgage company will foreclose 3-6 months after he stops paying. A couple months after that, they will EVICT him. So he won't just have a foreclosure on his credit, he will have an eviction as well. And the bank will ask for rent (at about $30/day) for every day the original poster lived in that house and didn't pay. Plus court costs. His second mortgage company can also exercise their option to sue him civilly for the amount he owes on that note. Once they get their judgement, they can garnish his wages and/or bank account. Still want those season tickets? | | | |
|
| | Azgram01
Posts:285
| | 09/15/2008 6:42 AM |
Alert | Before making that kind of decision, talk to a real estate attorney and a tax consultant so you know what the consequences and liabilities will be.
Laws are not the same in all states.
Don't rely on information you get on this forum for such an important decision.
| | | |
|
| | OldTownCopa
Posts:63
| | 09/15/2008 8:15 AM |
Alert | I've honestly never heard of an eviction appearing on a credit report. Doesn't seem like the type of thing that would go on there.
I've also never heard of a bank asking for rent money, either. Banks aren't really set up to collect rent, and enforcement would be nearly impossible with the huge numbers of foreclosures across the country.
And I think an earlier poster mentioned that Arizona is a no-fault state (something along those lines; I realize no-fault is a divorce term). Essentially meaning that banks are not legally allowed to go after AZ residents who default on a mortgage (first, second, whatever). The only recourse banks have is to foreclose on the home, and take it into their possession. Done. That's it. No lawsuits, nothing. In other states, I'm sure the law is different. But not in Arizona.
And the time frame on the foreclosure process I gave is relatively accurate. It'll be almost a year before you need to vacate the house. | | | |
|
| | NancyReagan
Posts:52
| | 09/15/2008 8:42 PM |
Alert | I personally know people who have been foreclosed on. They left the house long before the auction date, but the mortgage company still pursued a forcible detainer (eviction). They asked for $30 a day from the date of auction (7 months after last stopped paying) until the date they filed the forcible detainer (2 months after that).Plus court costs. They got their judgment from the court. If you google Arizona foreclosure law, yes, you will see in Arizona, the bank cannot go after you for a mortgage. But for a HELOC, they can. And they will. They get a civil judgment. It was not a year from when they last stopped paying, either. The original poster will certainly be in for a big surprise if he goes this route without consulting a qualified attorney- or does not conduct any small amount of research on the subject . | | | |
|
| | NY2Copa
Posts:144
| | 09/15/2008 8:57 PM |
Alert | | Finally .. a reliable source .... what is a HELOC? | | | |
|
| | LeonPotter
Posts:622
| | 09/15/2008 10:58 PM |
Alert | Posted By NY2Copa on 09/15/2008 8:57 PM
Finally .. a reliable source .... what is a HELOC?
Home Equity Line Of Credit
| |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
|
| | puppyluv
Posts:15
| | 09/16/2008 11:02 AM |
Alert | | Each person's situation is different. But I really wish people who make posts as fact would state their sources or their credentials on the topic. | | | |
|
| | OldTownCopa
Posts:63
| | 09/16/2008 11:21 AM |
Alert | We went through a foreclosure, so that is the experience I am speaking from.
Having a HELOC and then going through a foreclosure would produce an entirely different experience than the one we had. NancyReagan is very much correct on having to repay a HELOC since it's a line of credit as opposed to a simple mortgage. Does the court make you pay back the amount of the HELOC loan and nothing else?
And the time frames can vary a little depending on how "on the ball" your bank is/isn't. But if you know your house is getting foreclosed on, then you shouldn't wait around for someone to kick you out before finding another place to live. | | | |
|
| | Boysz5
Posts:25
| | 09/27/2008 7:47 AM |
Alert | Based on the recent re-sales in our development, we are over 100K upside down on our home. Until now we have always kept up with our mortgage payments. It seems they have taken away every incentive avail for people to try and keep their homes until the market turns around vs. walking away. In order to hold on to our home until the market turned around, we were looking at renting our property out. Our plan was to rent this property out and buy another closer to work and within a better schooI district. We had a pre-qualifcation letter from a lender until the 19th when the requirements changed. It seems that renting this property out to buy another is not even an option now. Because of the change in loan qualifications, you can no longer count rental income to qualify for a 2nd home. Only exception to these guidelines is if you move out of state. We understand there are people who have bought 2nd homes and let the other go back to the bank, but that was not our plan. So.....we called our lender yesterday to see if they would be willing to streamline our mortgage based on the current value and we were told ABSOLUTELY not. The only way a lender will do anything is if you fall behind on payments and at that point they may lower your interest rate or negotiate a "short sale" amt. Basically, what this means is people like us are stuck here --potentially for many, many, years. Why try to ride it out we ask ourselves? It will take a long, long, long time for us to recover the 100K we have lost. | | | |
|
| | DaybyDay
Posts:314
| | 09/27/2008 10:13 AM |
Alert | Gosh, seems a little hopeless.
Why would any of us bother under these circumstances? | | | |
|
| | AZnitro
Posts:85
| | 09/27/2008 10:53 AM |
Alert | Guess I was smart and did not buy a mammoth of a house. I bought a house that was what my family needed and we could afford and not much more. Sure I would have loved to have a bigger house and a 3 car garage thats than my 2 car I have now. I am sure I have lost value in my home since last december however I did not buy my home thinking I will sell it in a few years. I heard of people paying 50-60K more than I paid for my home in a short period of time before I bought my home. I made a commitment to my family and to my lender that I would repay this loan good bad or otherwise, hell I lost my job within 30 days of closing and moving into my new home. I am getting sick and tired of people whinning about the situation they put themselves into I am sure they thought everything was going to go perfect for them well guess what you need to adapt and overcome. I could have taken a loan out for the new pool and backyard and to fill my house with nice new furniture and and fancy stuff we all what for our new homes but things need to be done in moderation. How many of these forclosed home has a 25K pool in the backyard? I have a friend that is looking into buying a forclosed home in the area and there are a ton of them with pools and built in BBQ's firepits and all sorts of other things that are not really needed. add these extras to a ARM or a HELOC and its financial suicide. just my 2 cents too bad its only woth a fraction of that because other people are not responsible enough to follow through on obligations | | | |
|
| |
| | You are not authorized to post a reply. |
|
| |
ActiveForums 3.6 |
|
|
|