So can anyone tell me why I should pay my house note?

[Deudalus]

So basically in the bailout you have one of two things happening:

A: The government will buy a house that is foreclosed and take the pressure off of the bank and the buyer of the home.

B: The government will buy up the mortgage that the buyer cannot afford to pay for and "renegotiate" a better rate and better monthly note for them.


So my question is, why should I pay my house note?

I think I'd be much better served not paying, getting foreclosed, and then renegotiating myself down to a 3% interest rate from 5 and 3/8th which is where I am now don't you?

 

[StageLeft]

Because you will get credit dinged and also you're not confident enough in the plan or its ability to save you that you really feel comfortable with risking something you don't otherwise have to risk, especially with a recession on its way now.

 

[Rainsford]

Yes, undoubtedly foreclosing on your house will have absolutely no impact on your credit or your future ability to get a mortgage :roll:

I know people are pissed about other people getting a "free ride", and in some ways it does kind of suck for those of us who have been responsible. But let's not go overboard, if you think the government is going to save everyone and there will be no ramifications at all, you haven't thought this all the way through.

 

[NoStateofMind]

But what the OP stated is what is going to happen. This is the message that was sent. Don't pay your mortgage and the government will step in and renegotiate so you can. This is what you get when government goes to "fix" something.

 

[Jhhnn]

Your premises are inaccurate and dangerous.

The govt is going to buy troubled assets, MBS, and the mortgages backing them from banks. These are thousands of mortgages in bundles. Your mortgage may not even be in one of the "troubled" asset bundles. It may or may not be part of what the govt intends to buy.

The Treasury dept intends to engage private firms to evaluate each mortgage/ homeowner individually to determine what's best for the taxpayers. Depending on a whole lot of different parameters, they may or may not decide to engage the current homeowner in an alternate arrangement. There doesn't appear to be any sort of foreclosure moratorium involved, so if you get foreclosed before they get to your case- sorry, Charlie.

I strongly suspect that if the determination is made that you're just a deadbeat looking to jerk around the taxpayers that they'll toss your junkie ass on the street in a heartbeat...

Which is what you're talking about, right?

 

[BoberFett]

Worst case scenario, you shoot yourself in the leg and get to keep your house anyway.

 

[Zorba]

If you kill your credit score it is much harder to get a good job, just about all major companies run credit reports as part of the back ground check. Not to mention more secure things like security clearances, etc.

Also insurance costs would go up if your credit goes down.

 

[Starbuck1975]

If you kill your credit score it is much harder to get a good job, just about all major companies run credit reports as part of the back ground check. Not to mention more secure things like security clearances, etc. Also insurance costs would go up if your credit goes down.

True, but when 30% of the population falls into this category, kind of takes the impact out of the repercussions.

 

[frostedflakes]

Because it's the right thing to do? Just because you can game the system doesn't mean you should.