According to Dylan why wouldn't you? The banks and the borrowers entered a contract using the house as collateral when you did your mortgage. To no one's surprise the banks still expect you to pay your mortgage back after the housing sham went south.
The problem is they didn't hold up their end of the bargain. When their finances went south they ran to the Fed and got bailed out by the taxpayer. Wall St argues that you must pay back your loan because you entered a contract!
I say screw that! If you are in financial straights then why should you continue to be forced to pay your bloated mortgage when the banks couldn't hold up their end of the deal? Just drop your keys in the mail and walk away.
I love the analogy below with the car. When you don't pay your car loan back what happens? The finance company repos your car. Your credit rating then takes a hit and it's over.
Why shouldn't you be able to do the same thing with your house?
Let's be honest here: Without the Fed, 90% of the borrowers would have no place to mail their mortgage payments to right now because the bank that they lent it from would have likely failed back in 2008. They have a lot of balls to try and force you to hold up your end of the deal when they couldn't themselves.
The Bottom Line
Both parties entered into an agreement that was dead from the start because most borrowers were never going to be able to pay the loan back.
The banks no longer have to "stress out" about it because the Fed propped them up. You deserve the same relief, and the only way you will get it is by walking away from your house and backing out of the agreement.
Avoid the 30 years of stress and just mail back the keys! Before you do so make sure you listen to the consequences below in Dylan's clip:
9 comments:
This sort of thing tends to get heated in the "moral" stuff but as I see it the banks were selling options on a rapidly appreciating asset (homes). The trend reversed and now you hold a worthless option you got via obscene leverage. Would you go into debt forever to pay off a Pets.com long call? No way. A house is the same kind of thing, but the banks cant eat that loss. So the taxpayers do even though some belive we can print to infinity and beyond because w ehave out own currency. Walk is what I suggest.
Get
Couldn't agree more.
People are slowly but surely getting it.
Spending 30 years paying off an asset that's worth 30% of what it was will look plain stupid in most Americans eyes in a few years.
I just read that more than 50% of Americans are making less that $505 per week.
That blew me away. Incomes are crashing and the banks are not lending. Recipe for disaster for housing.
One year ago today, Jeff said:
"The bottom will be in on the markets when people like you capitulate and sell their stocks.
Only then will I become bullish.
I am a realist. If you want to call it gloom and doom have at it. Go stick your head back in the sand and go long the S&P.
I am sure that will work out great!
Friday, February 19, 2010"
You sure you want to stick with that "realist" meme? LOL!!!
Oh well, see you next year, mr realist!!!
Keep it up clown. I got your IP.
You just guaranteed another housing post on sunday.
Enjoy jackass!
If you have an IP I can get bthe MIT crew to work on it fun wise!
"If you have an IP I can get bthe MIT crew to work on it fun wise!"
So thats your response what has been nothing more than some verbal jabbing? Really?
Well the good thing is that if my info is ever compromised, I know exactly where to issue my first (two) summons. Its rare that the party will actually tell you where to look to find the source of the compromise (thanks for that)...
The existence of your blogs is certainly sufficient for personal jurisdiction, and if im lucky I can even get you to come to VA to defend yourselves (or face a default judgment).
Again, all that has happened thusfar is some feelings have been hurt, but thats it. It seems you boys need to think about this very carefully before you decide to take it up a notch.
I never threated you with anything dude. I just want you to scram.
Sigh.
Back to moderation of comments permanently.
Too much drama.
Hey - I love your site.
First let me make an important point: When you or I as a homeowner enter into a contract in GOOD FAITH with the bank to buy a home like I did, I did NOT expect them to commit FRAUD ON MY TITLE AT THE TIME OF BUYING MY HOUSE.
YES - THAT IS RIGHT - FRAUD ON MY PAPERWORK during the actual CLOSE of escrow when I forked over more than 20% of what they required - over $80,000 CASH.
What is that Fraud and how does it relate to you as a homeowner?
Google all you can about MERS Fraud and how the Mortgage Electronic Registry System - aka MERS - is a complete sham and fraud, including recent New York State Judge's ruling that MERS is a fraud and HOW THIS FRAUD CREATED BY MERS AFFECTS OVER 50% OF THE REAL ESTATE IN THE U.S..
Next let me say that as a homeowner who already walked away from my home, after I put more than 20% cash down - I was not a "subprime" borrower - and invested into not only my house and community, I have been over 3 years "Chasing" myself with Chase bank for a phantom loan modification that does not exist.
In addition to being underwater, I just walked away but NOT without a long fight and NOT without living there rent-free, biding my time and going along with the numerous stall tactics by Chase bank on "helping" me by asking me to apply again because they kept on "losing" my paperwork. (after the 9th application over 3 years, I have lost count the number of times I have applied.)
Technically, Chase Bank has NO right and NO authority to foreclose on me or my house because they are NOT the Owner nor the Investor on my property and still to this day, I have no idea WHO owns the Note on my house because the MERS computer system will NOT reveal who that person or entity is on top of not showing me at all in their system without the MIN number on my Trust Deed.
(This means that when I enter my Social, street address, city or Name or other id, MERS system will not bring up my property records AT ALL, like I do not exist -- UNLESS I enter the actual MIN number found on my ORIGINAL Trust Deed - then Voila! - my name and info appears without revealing WHO or WHAT owns the actual Note on my house.)
Banks - what a scam. These crooks will get their reckoning by karma - the sooner the better.
Sign me,
A MERS Homeowner Too
Thanks MERS
Sorry to hear about your situation. It sounds like a nightmare and I hear and read stories about this all of the time.
Kharma is a bitch and they will get theirs one day.
I am sorry that had to happen to you!
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