[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 488: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/bbcode.php on line 112: preg_replace(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4762: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/functions.php:3897)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4764: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/functions.php:3897)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4765: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/functions.php:3897)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4766: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/functions.php:3897)
Seattle Bubble Forum Archive • View topic - mortgage odds: heads I win, tails the bank loses

mortgage odds: heads I win, tails the bank loses

Myth propagated by bitter ignorant renters, or statistical reality ignored by real estate professionals?

Moderators: synthetik, The Tim, Lake Hills Renter

mortgage odds: heads I win, tails the bank loses

Postby sniglet » Wed Jan 02, 2008 9:33 am

This article does a great job of outlining the strong incentives home-owners have to walk away from their mortgages if they have negative equity. Many mortgages are "no-recourse" (i.e. meaning that the lender can't pursue any assets beyond the home itself). Moreover, even in cases where mortgages give recourse to the lender, they are apparently not doing so since the legal process, and odds of collecting, are so onerous.

Has anyone ever heard of lenders getting deficiency judgements against defaulting borrowers in the last couple years? I wonder how often this happens in Washington State.

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm

Postby jillayne » Wed Jan 02, 2008 8:04 pm

jillayne
Bubble Bloviator
 
Posts: 303
Joined: Sun Aug 05, 2007 9:20 am

Postby sniglet » Wed Jan 02, 2008 11:13 pm

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm

Postby jillayne » Thu Jan 03, 2008 12:15 am

jillayne
Bubble Bloviator
 
Posts: 303
Joined: Sun Aug 05, 2007 9:20 am

Postby sniglet » Tue Jan 22, 2008 12:01 pm

Lenders are noticing that that increasing numbers of borrowers are deciding to just "walk away" even though they have the ability to keep making payments. The old stigmas about defaulting and honouring a contract just don't seem to hold the same weight they used to.

It looks like there is an increasing amount of evidence to back up my theory that most people are just going to send in the keys if they wind up in a home worth less than the value of the mortgage.

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm

Postby sniglet » Fri Jan 25, 2008 10:53 am

Here is still more evidence that an increasing number of borrowers are deciding to "walk away" from their homes when they are worth less than the mortgage, even when they have the ability to pay.

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm

Postby jillayne » Fri Jan 25, 2008 2:06 pm

jillayne
Bubble Bloviator
 
Posts: 303
Joined: Sun Aug 05, 2007 9:20 am

Postby jillayne » Fri Jan 25, 2008 2:08 pm

jillayne
Bubble Bloviator
 
Posts: 303
Joined: Sun Aug 05, 2007 9:20 am

Postby sniglet » Mon Jan 28, 2008 10:35 am

It's breath-taking to see just how quickly the idea of "walking away" from homes just because they are worth less than the mortgage is spreading. A local TV station in Sacramento even ran a segment on how to do "intentional foreclosure".

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm

Postby jillayne » Mon Jan 28, 2008 4:49 pm

jillayne
Bubble Bloviator
 
Posts: 303
Joined: Sun Aug 05, 2007 9:20 am

Postby Alan » Mon Jan 28, 2008 4:56 pm

Alan
Bubble Banter Boss
 
Posts: 780
Joined: Sun Feb 18, 2007 7:08 pm

Postby sniglet » Tue Jan 29, 2008 7:24 am

This just gets better and better... Mish's blog pointed out that there is actually a company called "You Walk Away" who's whole purpose is to work out a personalized strategy for you to turn your house back to the lender. Business is booming apparently.

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm

Postby jillayne » Tue Jan 29, 2008 1:07 pm

jillayne
Bubble Bloviator
 
Posts: 303
Joined: Sun Aug 05, 2007 9:20 am

Postby deejayoh » Tue Jan 29, 2008 1:14 pm

you should read Tanta's post over at Calculated Risk

deejayoh
Bubble Banter Boss
 
Posts: 1166
Joined: Mon Feb 26, 2007 12:14 pm
Location: Capitol Hill

Postby sniglet » Tue Jan 29, 2008 3:13 pm

sniglet
Bubble Banter Boss
 
Posts: 680
Joined: Thu Feb 22, 2007 2:58 pm


Return to Housing Bubble

Who is online

Users browsing this forum: No registered users and 17 guests