Posted this over at FW ... so amped up right now I figured I'd post it here too 🙂 ...
------------ Beginning ------------
I've seen a lot this week. There is no abbreviated version to my ramblings below ...
------------ PART I ------------
I saw the renter eviction of a condo that belongs to someone I know. The person who lived in it had HUD assistance for 1/2 the rent, only paid 1 out of 3 months rent. She lied on her rental application about income and living situation. Sad story about single parent with 2 kids, but had a full time live-in boyfriend who was outside washing his car every day. She tried to appease the court with letters and the management company by begging for extensions.
In the end, she left the home completely furnished, even down to her children's clothing and toys. It was sad. It was a 3br condo full of furniture and clothes. The items were removed to the curb, where anyone and everyone took everything but the garbage within 4 hours. Ends up most of it was from Rent-A-Center. So it wasn't even near being paid for.
Later at night I looked her up in our state and found 3 other evictions. The management company dropped the ball on the background check (they said she was fine), but they can't be held responsible (per contract).
------------ Part II ------------
We all know that people want something and if someone will give positive notion ... it's game on. So people borrowed to much and did anything (no doc, interest only, arm, combos, etc) to get into a house.
Now ... same development. A lady purchased one for 190k 0% down about 2 years ago. She is upside down about 30k (current market) and wants to move so she can get a yard for her young son. Instead of sucking up the loss and owning up to her decisions, she stopped making mortgage payments to show duress. She still has a great job and makes the payments on her 45k SUV no problem.
I talked to her while she was moving out the other day and she claims the short sale is going to happen for about 140k and it's no recourse. She just walks scotch free. I hear she will get hit with an income or capital gains shot ... but that's chump change next to losing the 30k (market) or 50k (short).
The guy who's getting it has been pressing all units for sale to enter a short sale if he can find that they have a high LTV loan. He lives in the neighborhood and is a real sleeze bucket scooping up and widdling people down until they just give in.
------------ Part III ------------
I was talking to one of the agents for builder who did the neighborhood (about 4 years old) ... he said they can't even build homes for a lot of the current short prices.
At 140k, most of the people who own purchased 139k and up. So original buyers from 4 years ago are now being trounced. If this lady can get out with no recourse ... why would ANYONE stay there unless they put money down (and few did). It's mind boggling. The could all wiggle out. Maybe the banks think that if they gobble up red ink on paper it will make them more favorable for gov't assitance? I bought my home for a roof over my head ... if I lost money, I still need a place to live. So I would stay and wait it out long term. Everyone expects overnight riches on 0% hard work or investment. They're brainless morons.
------------ Part IV ------------
Outside of 100% payoff; It should be as difficult to get out of a loan as it is to get one (or as difficult as it will be soon). If they looked at this lady outside of "she missed her payments" and saw she has a great job with $$$ in the bank. They'd say "PAY YOUR MORTGAGE YOU IDIOT". Short sale DENIED.
------------ Part V ------------
Why are people who work hard, save, invest and put away for retirement being penalized by the markets, while the people who lie, cheat, steal and have no moral values get away into the night unscathed?
I say screw the bailouts/restructuring/etc. Screw the scum who are always cheating the system. Let the markets crumble. Not until we've learned from our mistakes can we begin to fix anything. Screw sweep accounts. Everyone is used to being loaned money for floating and what not. Make the system work instant, it's friggin' electronic for cryin' out loud. Instant transfers to make payroll, no bank-to-bank floating. Get everyone in real time.
Most of my hard work has been applied to retirement and primary home ... I say let the hard times begin. If my wife and I both lost our jobs, we would use savings, sell our home at a personal loss (not bank loss) and move onward. In the meantime, let us continue to save and invest while the markets tank so we can get rewarded for being pennywise people who want to retire on OUR expenses, not rely on the gov't.
------------ Part VI ------------
I'm not a personal finance guy or some type of self proclaimed economist ... but this is just such a mess and everyone is looking for some type of excuse. I've always owned up for my mistakes. You take your lickings, learn your lessons and move on. Seems everyone got caught up in the riot mentality, time to pay the piper.
------------ Part VII ------------
Gas prices. People freak out and literally cause a shortage overnight. I saw gas prices here (Tallahassee, FL) rise from 3.65 to 5.19 in less than 12 hours a few weeks back. There are still stations with no gas. Instead of producing more, or making it cheaper ... solve the problem!!! People driving 20+ miles each way to work every day, alone!!! Public transportation. Rideshare. Fuel efficiency, electric cars and price alone are just the tip of the iceberg.
------------ Part VIII ------------
Everyone loves to complain, but no one wants to be part of the solution. I see this all the time with an organization I serve (unpaid and without thanks most of the time). Everyone LOVES to come and complain. When encouraged to be part of the solution, they just disappear. No one wants to do any hard work.
------------ Closing ------------
Suppose I should start a blog and write this type of stuff on it. Talks amongst yourselves!
------------ Beginning ------------
I've seen a lot this week. There is no abbreviated version to my ramblings below ...
------------ PART I ------------
I saw the renter eviction of a condo that belongs to someone I know. The person who lived in it had HUD assistance for 1/2 the rent, only paid 1 out of 3 months rent. She lied on her rental application about income and living situation. Sad story about single parent with 2 kids, but had a full time live-in boyfriend who was outside washing his car every day. She tried to appease the court with letters and the management company by begging for extensions.
In the end, she left the home completely furnished, even down to her children's clothing and toys. It was sad. It was a 3br condo full of furniture and clothes. The items were removed to the curb, where anyone and everyone took everything but the garbage within 4 hours. Ends up most of it was from Rent-A-Center. So it wasn't even near being paid for.
Later at night I looked her up in our state and found 3 other evictions. The management company dropped the ball on the background check (they said she was fine), but they can't be held responsible (per contract).
------------ Part II ------------
We all know that people want something and if someone will give positive notion ... it's game on. So people borrowed to much and did anything (no doc, interest only, arm, combos, etc) to get into a house.
Now ... same development. A lady purchased one for 190k 0% down about 2 years ago. She is upside down about 30k (current market) and wants to move so she can get a yard for her young son. Instead of sucking up the loss and owning up to her decisions, she stopped making mortgage payments to show duress. She still has a great job and makes the payments on her 45k SUV no problem.
I talked to her while she was moving out the other day and she claims the short sale is going to happen for about 140k and it's no recourse. She just walks scotch free. I hear she will get hit with an income or capital gains shot ... but that's chump change next to losing the 30k (market) or 50k (short).
The guy who's getting it has been pressing all units for sale to enter a short sale if he can find that they have a high LTV loan. He lives in the neighborhood and is a real sleeze bucket scooping up and widdling people down until they just give in.
------------ Part III ------------
I was talking to one of the agents for builder who did the neighborhood (about 4 years old) ... he said they can't even build homes for a lot of the current short prices.
At 140k, most of the people who own purchased 139k and up. So original buyers from 4 years ago are now being trounced. If this lady can get out with no recourse ... why would ANYONE stay there unless they put money down (and few did). It's mind boggling. The could all wiggle out. Maybe the banks think that if they gobble up red ink on paper it will make them more favorable for gov't assitance? I bought my home for a roof over my head ... if I lost money, I still need a place to live. So I would stay and wait it out long term. Everyone expects overnight riches on 0% hard work or investment. They're brainless morons.
------------ Part IV ------------
Outside of 100% payoff; It should be as difficult to get out of a loan as it is to get one (or as difficult as it will be soon). If they looked at this lady outside of "she missed her payments" and saw she has a great job with $$$ in the bank. They'd say "PAY YOUR MORTGAGE YOU IDIOT". Short sale DENIED.
------------ Part V ------------
Why are people who work hard, save, invest and put away for retirement being penalized by the markets, while the people who lie, cheat, steal and have no moral values get away into the night unscathed?
I say screw the bailouts/restructuring/etc. Screw the scum who are always cheating the system. Let the markets crumble. Not until we've learned from our mistakes can we begin to fix anything. Screw sweep accounts. Everyone is used to being loaned money for floating and what not. Make the system work instant, it's friggin' electronic for cryin' out loud. Instant transfers to make payroll, no bank-to-bank floating. Get everyone in real time.
Most of my hard work has been applied to retirement and primary home ... I say let the hard times begin. If my wife and I both lost our jobs, we would use savings, sell our home at a personal loss (not bank loss) and move onward. In the meantime, let us continue to save and invest while the markets tank so we can get rewarded for being pennywise people who want to retire on OUR expenses, not rely on the gov't.
------------ Part VI ------------
I'm not a personal finance guy or some type of self proclaimed economist ... but this is just such a mess and everyone is looking for some type of excuse. I've always owned up for my mistakes. You take your lickings, learn your lessons and move on. Seems everyone got caught up in the riot mentality, time to pay the piper.
------------ Part VII ------------
Gas prices. People freak out and literally cause a shortage overnight. I saw gas prices here (Tallahassee, FL) rise from 3.65 to 5.19 in less than 12 hours a few weeks back. There are still stations with no gas. Instead of producing more, or making it cheaper ... solve the problem!!! People driving 20+ miles each way to work every day, alone!!! Public transportation. Rideshare. Fuel efficiency, electric cars and price alone are just the tip of the iceberg.
------------ Part VIII ------------
Everyone loves to complain, but no one wants to be part of the solution. I see this all the time with an organization I serve (unpaid and without thanks most of the time). Everyone LOVES to come and complain. When encouraged to be part of the solution, they just disappear. No one wants to do any hard work.
------------ Closing ------------
Suppose I should start a blog and write this type of stuff on it. Talks amongst yourselves!
