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American dream part 2: Default, then rent. More anecdotal evidence of people willing to take the...

American dream part 2: Default, then rent. More anecdotal evidence of people willing to take the credit hit of walking away from a mortgage, in order to free up cash for day-to-day use.
Comments (11)
  • woollyB
    , contributor
    Comments (1019) | Send Message
     
    This is going to be one of the biggest stories of 2010.
    11 Dec 2009, 06:01 PM Reply Like
  • Jeff Nielson
    , contributor
    Comments (2464) | Send Message
     
    My understanding is that the credit rules are ALSO being altered to allow U.S. homeowners who do "short sales" to walk away with clean credit ratings - essentially allowing them to buy AGAIN the next day.

     

    As I just pointed out in a commentary, most U.S. home-buyers this year are doing so with ZERO down-payments ("The U.S. Government's Zero Down-payment Mortgages" www.bullionbullscanada...).

     

    So you buy a home with zero down-payment, do a short-sale and walk away - as soon as you get "underwater", and then buy ANOTHER house the next day (again, with zero down-payment).

     

    That's how you get a government-created housing bubble.
    11 Dec 2009, 06:35 PM Reply Like
  • Hyper
    , contributor
    Comments (60) | Send Message
     
    Obamanomics at work. Just think, 24 more months.
    11 Dec 2009, 06:46 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4009) | Send Message
     
    Meanwhile, Mike Shedlock reports that 20% of Federal Civil Service employees make over $100,000 a year, plus benefits.
    11 Dec 2009, 07:04 PM Reply Like
  • Need2Learn
    , contributor
    Comments (28) | Send Message
     
    Morons, you can't just blame O, this all started with Reagan, Greenspan, W., Rubin, and to be fair Clinton, and a bunch of others. This economy is not coming back. Apparently, some people in this country are in denial, and have no clue about world history. Just amazing that some people in this country, think things can always come back, that America is some how is entitled, and so on. How wrong these people are, how utterly spoiled they really are. Good luck folks...
    11 Dec 2009, 08:36 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    Government may be clueless but governments don't create bubbles. Where is individual responsibility
    11 Dec 2009, 09:50 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2878) | Send Message
     
    It's obvious that after banksters got their bailouts and bonuses, Americans no longer have any moral qualms about screwing the banks.
    11 Dec 2009, 10:24 PM Reply Like
  • zorrow
    , contributor
    Comments (846) | Send Message
     
    Sell GS, JPM, Societe General, Deutche Bank. Walk away from your mortgage; and vote out all Republican obstructionists and GS collaborators. Rid our country and the world of these gangsters.
    11 Dec 2009, 10:41 PM Reply Like
  • Mr. Ed, Jr.
    , contributor
    Comments (745) | Send Message
     
    Banksters, unions, Wall Street, bankrupt companies get bailed out with money from the account of "We The People"......They will all get to keep their homes and their stock options, benefits packages and golden parachute deals.

     

    The thieves who "represent" us in Washington will all land cushy jobs that require no work (at high pay) when they are thrown out next year. They are taking care of themselves right now, by selling out their nation's future. (Remember when they were briefed on the financial crisis by Treasury Secretary Paulson last year....and they rushed out to sell all of their stocks ? They were taking care of themselves then, too)

     

    Banks get almost-free money from the government (our money), then slash our credit, while hiking interest rates on credit cards to 29%, and increasing every fee they can think of. They turn down almost every citizen and business for credit, so they can hoard their profits for what they know is coming. Or so they can take that almost-free money and make more money from it by manipulating markets, driving up commodities, and generally giving us a good "rogering".

     

    If the screwed-over citizens now have to stop paying their mortgages to put a little away for the coming year(s), then they have to do what they have to do.

     

    We are witnessing the greatest theft of wealth in the history of the world. It is being done to us right in front of our eyes. It is amazing to me that millions of citizens have not taken to the streets, tar and feathers in hand. Perhaps it is because our government and our media keep lying to us....and we are inclined to believe....because we want to believe.

     

    But we are being lied to. The wealth of a nation is being squandered by our non-representing representatives in order to secure their own re-election or, at worst, a comfortable lifestyle after they are voted out.

     

    in the meantime, to those who have stopped paying their mortgages as they plan for their own survival....best of luck to you.
    12 Dec 2009, 02:26 AM Reply Like
  • Carlos Lam
    , contributor
    Comments (1306) | Send Message
     
    On Dec 11 10:24 PM dividend_growth wrote:

     

    > It's obvious that after banksters got their bailouts and bonuses,
    > Americans no longer have any moral qualms about screwing the banks.

     

    I'd argue that it shouldn't be a moral decision. Every mortgage has an implicit put option: you can put the house to lender and walk away, unless the note somehow forbids you from defaulting (I don't know how that would work).
    12 Dec 2009, 05:49 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Refreshing to see somebody that "Gets it" referring to Mr. Ed Jr. comments. Could not have said it better myself.
    12 Dec 2009, 09:18 AM Reply Like
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