Use access key #2 to skip to page content.

Stop Paying Your Mortgage...

Recs

9

October 30, 2008 – Comments (9)

Why should you? Sheila Bair and Hanky Paulson are going to get you a worked-down payment plan with a taxpayer-soaking Federal guarantee.

Why honor your contracts when there's much more to be gained by being a deadbeat?

I imagine Bair and Paulson -- or rather, the unlucky Obama comrades who inherit this mess -- are going to find out about unintended consequences.

9 Comments – Post Your Own

#1) On October 30, 2008 at 10:12 AM, devoish (99.10) wrote:

Unintended? Hmmm...

Report this comment
#2) On October 30, 2008 at 10:16 AM, Zanibel17 (97.82) wrote:

Great Idea!

I have excellent credit (the most recent credit report I have puts me at around 790), so I can afford to take the hit on my credit.  I also don't need access to credit anytime soon.

If I don't pay my mortgage for six months I will save about $7200, then I can renegotiate the terms of my mortgage, roll my HELOC into my first mortgage, get a better interest rate, AND get a lower monthly payment.

Report this comment
#3) On October 30, 2008 at 10:49 AM, abitare (40.75) wrote:

Peter Schiff has writen about it here:

Just stop paying your mortgage

http://www.signonsandiego.com/uniontrib/20081010/news_lz1e10schiff.html

Report this comment
#4) On October 30, 2008 at 10:53 AM, amoldov (31.59) wrote:

That's right! Why bother to pay? Let the comrades do it ...

Report this comment
#5) On October 30, 2008 at 10:59 AM, tally2007 (69.49) wrote:

OMgosh. This whole country has been based on bad parenting techniques, with the Fed being the worst parent I've ever seen. We need "Super Nanny" and quick! By continuing to reward bad behavior and more than grandiose enabling, we may never get to a healthy place. And they just can't understand how the child was allowed to get out of control? Pleeease. I never did feel Mr. Greenspan was doing his job, which in my opinion was to be the voice of reason regarding our economy. Did he ever clearly state anything? No. Why did he talk in circles so that the average American couldn't understand a word he said? All of that ridiculous speculation on what he was saying was absurd. He knew what was going on and I venture to say that, yes, he is a smart man. Smart enough to stay in that job as long as he did, which now affords him a comfortable retirement. At the same time, he put the rest of us in severe jeopardy and many will lose their retirement. Way to go Greenspan. Aren't you a happy man? If only you'd had the guts to step forward and be honest, you could have been a hero. But then, you might have lost your job. Right? So where are you now, Mr. Greenspan?  "Good Grief" as Charlie Brown would say.

Report this comment
#6) On October 30, 2008 at 11:43 AM, BigFatBEAR (29.49) wrote:

Seems the idea is spreading like wildfire: http://market-ticker.denninger.net/archives/636-Stop-Paying-Your-Mortgage-Today.html

As for slinging mud at Greenspan, I honestly think that he was doing the best he could. Up until recently, he was thought of as the best Fed chairman in history. And realistically, you don't get to be Fed chairman without being a pretty damn smart and influential economist. If anything, I'm least mad at him - he's already come out and owned his piece of the puzzle, unlike most.

Ultimately I think that presidents, Fed chairmen, and treasury figures can only claim a small percent of the responsibility for this mess. Debt is a national, cultural problem - and until a sea change in our thinking occurs, expect to see more of the same.

Report this comment
#7) On October 30, 2008 at 12:10 PM, TMFLomax (28.82) wrote:

Yeah, we've got some real pervasive problems in attitude, what gets rewarded, and what doesn't. It's become pretty clear it's quite vogue that those who tried to do the right thing are supposed to support the dingalings who have made all the wrong decisions. It's outrageous and extremely dangerous.  

It's interesting, a friend of mine recently moved to Florida and claims he has run into an alarming number of people who -- that's right -- haven't been paying their mortgages and are just sitting around in their houses. I guess those of us who pay our mortgages and rents are just a bunch of suckers? Uh-oh, getting steamed again. ;) 

And I also am not too high on Greenspan these days. It doesn't add up to me that a smart guy who mentioned "irrational exuberance" during the dot-com bubble didn't do the same about what was going on in housing -- at the very least make some cautionary statements (that weren't delivered in riddle form, haha). It just seemed like common sense to me, if you watched what people were doing and listened to what they were saying, that it didn't sound like anything anywhere near prudence or a normal market. ("the only way you can get rich is through real estate!! I'm so RICH!!" hahaha) 

We need to quit acting like debt-fueled spending and continuous asset bubbles are the path to a "fundamentally sound" economy.   

Report this comment
#8) On October 30, 2008 at 12:59 PM, Imperial1964 (97.51) wrote:

Here's the thing with defaulting and renegotiating your mortgage:  If you're not careful, you might wind up refinancing your non-recourse purchase mortgage into a recourse mortgage where, if you are later unable to pay they could garnish your wages, other posessions, and force you into bankruptcy.

READ THE TERMS OF YOUR MORTGAGE CAREFULLY!

In fact, anyone thinking about such action should consult both a lawyer and a CPA.

Report this comment
#9) On October 30, 2008 at 2:04 PM, Zanibel17 (97.82) wrote:

Good advice, Imperial.  You're the voice of reason to counter the irrationality of people like me.

Report this comment

Featured Broker Partners


Advertisement