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Debtor's Dilemma: Pay the Mortgage or Walk Away - WSJ.com
A recent study from the Federal Reserve Bank of Richmond found that under-water borrowers were 20% more likely to default in a state where mortgage lenders can ...
http://online.wsj.com/article/SB126100260600594531.html
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Mortgage loan - Wikipedia, the free encyclopedia
A mortgage loan is a loan secured by real ... existing seller's loan, the buyer can consider assuming the seller's mortgage A ... to the United States, but overall default ...
http://en.wikipedia.org/wiki/Mortgage_loan
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Strategic-default rate still high, despite drop - MarketWatch
The strategic-default rate fell to 17% by the second quarter of 2010, the most ... The higher costs of strategic mortgage default May 18, 2011
http://articles.marketwatch.com/2011-06-24/finance/30712034_1_strategic-default-strategic-default-mortgage-rates
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Strategic Default | Should you stop Paying your Mortgage?
The Strategic Mortgage Default System is the only comprehensive system to highlight all the issues you need to consider in order to decide whether to stop paying your ...
http://www.strategicloandefault.com/
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Reasons to Consider a Strategic Default | Foreclosure Defense ...
Top 3 Reasons to Consider a Strategic Mortgage Default. Reason No. 1: It makes financial sense. The CEO of Citibank's mortgage unit estimates that one in five homeowners ...
http://www.tampaforeclosuredefenselawyer.com/Foreclosure-Defense-in-Tampa/Reasons-to-Consider-a-Strategic-Default.aspx
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Strategic Default Gaining in Popularity | AOL Real Estate
Forty-eight percent of homeownerssurveyedsay they would consider a strategic default ... account and is given to the homeowner when he pays off the mortgage ...
http://realestate.aol.com/blog/2010/12/27/strategic-default-gaining-in-popularity-banks-in-denial/
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A Consumer's Guide to Mortgage Refinancings
Your lender will consider your income and assets, credit score, other debts, the ... Shopping around for a home loan will help you get the best financing deal.
http://www.federalreserve.gov/pubs/refinancings/default.htm
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The Morality of Deliberate Defaults | The Agonist
Over a quarter of American homeowners owe more on their mortgage than their home is worth. In some bubbly markets like California, three out of four homeowners are ...
http://agonist.org/numerian/20091004/the_morality_of_deliberate_defaults
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Determine Whether a Mortgage Default Makes Sense Before ...
When weighing whether to default on a mortgage, borrowers need to consider the likelihood of their needing credit in the fairly near future. A default will ...
http://ezinearticles.com/?Determine-Whether-a-Mortgage-Default-Makes-Sense-Before-Walking-Away&id=1946634
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Fraud/Deliberate Default (no intention of paying mortgage ...
Fraud/Deliberate Default (no intention of paying mortgage) This is a discussion on Fraud/Deliberate Default (no intention of paying mortgage) within the Debt ...
http://www.worldlawdirect.com/forum/debt-collection/50263-fraud-deliberate-default-no-intention-paying-mortgage.html
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The FICO credit score and strategic default - Examiner.com
The FICO credit score and strategic defaultExaminer.comOne of the distinguishing factors between a strategic default and other mortgage defaults is that the strategic default is a deliberate business decision. The homeowner has the ability to make payments but simply decides not to because the property ...and more »
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Retirees' Number 1 Dividend Strategy - Seeking Alpha
Retirees' Number 1 Dividend StrategySeeking AlphaMortgage real estate investment trusts (mREITs) offer retirees 15% dividends. The mREITs' balance sheet possess US Federal Government implicitly guaranteed Treasury Bonds. I ask retirees to consider investing a small allocation in this sector for their ...and more »
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Gary Ablett Sr lashes out at Westpac over civil action against him - Herald Sun
Gary Ablett Sr lashes out at Westpac over civil action against himHerald SunAFL great Gary Ablett Sr has launched a stinging attack on Westpac, saying the bank was "clearly out to slur my reputation" by launching civil action over an alleged default on his mortgage. He said yesterday the bank's Supreme Court statement of claim ...and more »
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Book Review: Thieves of Bay Street, by Bruce Livesey - National Post
National PostBook Review: Thieves of Bay Street, by Bruce LiveseyNational PostLow interest was the double whammy to honesty, for it drove retired people to seek income from ever riskier investments, such as mortgage derivatives, created an environment for Ponzi schemes to flourish and made it easier to borrow money to buy stocks ... -
Turn for worse sank Genworth IPO - Sydney Morning Herald
Turn for worse sank Genworth IPOSydney Morning HeraldMONTHS before Genworth Financial shelved its Australian sharemarket listing due to pressure on quarterly earnings, the nation's biggest mortgage insurer posted a 35 per cent surge in its full-year profit, latest accounts show.and more »
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The Fed's Jelly Donut Policy - Huffington Post
The Fed's Jelly Donut PolicyHuffington PostBart gets into trouble very quickly and defaults on his loans. Lisa decides she can't afford a mortgage until rates fall. And Maggie, who's been helping out Bart with some of his expenses, believes that she'd make money if she grew the business, ...and more »
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How Did the Democrats Manage Not to Pass Foreclosure Reform? - KQED (blog)
How Did the Democrats Manage Not to Pass Foreclosure Reform?KQED (blog)The six bills would require more rigorous documentation on the part of banks when foreclosing on properties; prohibit foreclosure when the homeowner has filed for a loan modification; impose a fee on lenders every time they file a notice of default; ...and more »
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What's Hidden in Obama's 'Julia' Campaign - U.S. News & World Report (blog)
What's Hidden in Obama's 'Julia' CampaignU.S. News & World Report (blog)The fact that the Obama campaign chose to tell her story in highly stylized graphics—not with live actors, "Harry and Louise" style—was a deliberate choice. It allows the campaign to convey much more partisan information than a 30-second ad, ...and more »
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Abbatiello offers personal opinion piece -- What did city/BOE know about ... - Oak Ridger
Abbatiello offers personal opinion piece -- What did city/BOE know about ...Oak RidgerThe existence of this $16 million shows that there is plenty of cash available to pay the current default mortgage note if the desire was there to pay this debt. Comment: Unfortunately, spending any of the city funds now will create a future shortfall ...
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Treasury postpones decision on floating interest rates - Reporter Online
Treasury postpones decision on floating interest ratesReporter OnlineThese would be like an adjustable rate mortgage, except for sovereign debt, wherein interest rates would adjust over time instead of being at a fixed rate. For now, the Treasury is saying it needs more time to study the issue before coming to a final ...and more »
An Example of Deliberate Default of a Mortgage
Job creation in the U.S. has been very slow for the past several years, and unemployment rates are high. In fact it has been reported that since the recession officially ended, there are currently about a half-million fewer jobs in the country than at the time the recession ended 19 months ago. Lots of people have become unemployed, and many of these could not make their home payments and had their houses foreclosed upon.
Another tactic has emerged recently that is making the numbers of foreclosed homes go even higher. Some people who have a job and who can afford to make their house payments are deliberately halting their mortgage payments and allowing their homes to go into foreclosure.
These are people in places like Las Vegas or Phoenix, for example, who bought properties at the height of the housing bubble and who have seen the value of their house drop substantially.
Why would a person with a good job who can afford to make his house payments just stop doing so and let the property fall into foreclosure? The answer is that in places like Phoenix, Arizona or Las Vegas, Nevada, where prices increased the most during the bubble, home values have in turn dropped by large amounts. The average in those areas is in the 50-60% range and is sometimes higher than that. So the home owner now owes substantially more on his mortgage than the property is worth.
The people in this situation clearly made a poor financial decision. Such a person was interviewed on a national TV show recently. He lives in the Phoenix area and bought a house in 2006 at about the peak of the housing bubble. He has a mortgage with a balance of about $260,000, but his house would only fetch $140,000 if sold today. He is thus about $120,000 under water and wants to get out from under this debt. Although he still has a job and could make his house payments, he has stopped doing so. He plans to live in the home without making payments until his family is evicted, which he believes will occur in the July timeframe. He is planning on saving the house payment money, obtaining a rental to live in for a few years, and working to restore his credit.
Pulling this kind of tactic to get out of a legal debt obligation certainly brings up moral issues. In fact this author will discuss those in a future article, because the subject is interesting. On just a plain business level, however, this young man appears to be making his second big error. Of course buying the house in the first place was the first. He will get out of paying $120k in mortgage debt, but if he and his family were to stay in the home for a few more years, maybe the Phoenix real estate market would recover. He could very conceivably see his home value increase and cut his mortgage losses in that way. As a young person he has time to recover from his financial setback. As it is now he will ruin his credit rating and probably have to deal with overbearing collection agencies and persistent bankers and lawyers. On just a strict financial basis, if his debt was five hundred thousand dollars the pain he is about to go through might be worth it, but for $120k it is not.
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