I do totally understand that i am not entitled to a mod but requesting one is not wrong. it is better to be upfront with the bank who lend you the money to purchase it , than not to contact them and not make payments….

I am responsible to provide food, shelter and love to my kids that is all I am trying to do. How can I share the profits with the bank If I gave them a down payment, used their appraiser, their title company, their broker/LO??? Trust me I would’ve much rather the appraisal have come in lower, (ie lower taxes, lower insurance, lower mtg payment) I believe a lot of us were hit between the eyes because of the big dogs greed.

the one important factor with the Donald though…he did get help from the lenders he owed money. They restructured and reduced some significant coin, of course these lenders knew the donald would rise again. All the donald wannabes do not have the luxury of the same help.

Carrie – I hope you are able to save your house but I also believe you should be realistic. You bought at the height of a bubble that has now burst. Your problems occurred not because of that and not because of some evil lender but because your circumstances changed – you lost your job. Things like that happen in all economies under Democrats and Republicans. If you can hang on or if you get your lender work with you, more power to you but please realize this is not something you are “entitled” to. Until you are willing to share any profits you make on that house you cannot ask the lender to bear the entire burden of the loss by writing down or forgiving any portion of the money you borrowed to purchase this home. It may take 30 years before your house is once again an asset. Can you live with that? Is it a home or just something you expect a return on? Think long and hard about that.

I read the article and it seems if they make a rule to stop the few who “buy and bail” that it will hurt the legit folks who may be trying to purchase another home before the current one sells.

I read that they may require 30% equity on the new house?

I have a friend who was telling me he is buying a new house and renting out his current property until the values move up a little.
He had said that when he did this a few years ago all the bank wanted was a lease agreement on the old property.

He told me now the same bank wants to see, in addition to the lease, that he has enough money in the bank to cover a year worth of payments on his old house and a certain amount to cover payments in the bank on his new house. I wonder if they will also want him to have 30% down on the new house as well. That seems a little overboard to me?

Jeeze if that is the case then only the wealthy are going to be able to buy new homes.

yes lenders are wising up to some degree but with the amount of foreclosures in the pipeline it would take some time to catch this activity and then trace back. Not to mention going to another lender. If one really wanted to it can be done.

In many cases you can offer a deed in lieu of foreclosure at some point in the process so the snap-back is less likely. Banks do not offer this option you have to present it so, get this , you did not feel coerced into handing over your deed.

Another thing most are not thinking about is that the lender can go after other assets to recover any differential. I have never seen this but now with how the losses are stacking up I am curious if there will be more forensic accounting to some level.

I totally agree with you that this is completely wrong, but I have been in several discussions with Gatorbait & lookinthemirror to try to understand their way of thinking & I can’t get their blinders off….

I am fighting to stay in the home that I am in.
I just did not understand the advice Gator was giving on his post and how can someone do that…

The answer is you can’t do it. Try reading this article:
http://www.pressdemocrat.com/article/20080612/NEWS07/806120400/?ref=patrick.net

The banks are wising up and if they catch you doing it in some states they can go after your new house.

Do yourself a favor this time – get the education you didn’t get when you originally bought your house and stop buying into these koolaid fantasies.

This is why banks should not write down principals – you idiots will go right back out and do the same shit again. It’s called a moral hazard.

Question, how will I qualify to buy another home if I currently have one?
I understand your train of thought here, but How can we do it?

One of my co-workers said that the home next door to hers foreclosed & the bank soldit for 48% under the original price (the bank lost almost 50%). So instead why don’t the banks just lower everyones payments so that they can afford the house they are in now and the banks/investors still get paid.
why the loss instead of a lower gain????

I have one possible solution…let’s drive home values back down to affordable levels while rates are still low.

If you happened to buy a house in 2005/06 during the peak…look in your hood for the same or similar home that is now worth almost 50% less than when you purchased yours….make a low ball offer on any that are for sale at the fire sale price and move quickly to close on the new home at a much lower value. Now that the 95%-100% loan is back.

Then let your current home move into foreclosure…(after 4 years you will be able to qualify for a conventional mortgage again anyway. I also suspect that with the number of people who are going into foreclosure that the time-line to qualify for a conventional loan will be reduced at some point).

Why should you pay 50-60% more than you need to? Your mortgage payment will be lower and as well as your property taxes. A real win-win…except for the old lender….but so what?? they were the one’s that let you buy an over valued home in the first place and now when you ask for help….the lender does not even try to help you out.

This would be one approach to help home values become more affordable…

it seems the high end home-buyers are beginning to do this very tactic…esp when their current value has dropped 40-50%. Most Jumbo financing this year (loans >423k in most areas) are in the 7%-8.25% range or higher. So it is very difficult for those borrowers who bought the past few years to even refinance into more affordable terms when the rate offered now is much higher than what they have from 2 years ago.

it is time to fight back with some creative tactics of our own….