Posts tagged as:

underwater mortgage

Homeowners in Their 20’s More Likely to Bail on Underwater Mortgages

by Moe Bedard

“Why would I keep paying on a $250,000 loan?” he asked. “I would not ever buy a house again.” (We tried to follow up with this guy, but his number had been disconnected.)
Statistics don’t exist because no one declares their reasons for walking away, but a handful of papers have suggested that there’s something to [...]

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Underwater Homeowners Should Bail in Rental Life Rafts

by Moe Bedard

Homeowners who are significantly underwater with their mortgages should consider walking away from those, according to Brent T. White, an associate professor at the University of Arizona’s James E. Rogers College of Law.
In a paper titled titled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis,” White writes most [...]

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Homeowners Continue to Walk Away in Droves

by Moe Bedard

He stopped paying the mortgage, basically forcing the lender to take the condo off his hands through foreclosure.
“I was able to pay off all my credit cards,” said Duque, who is biding his time in the condo, waiting until they come and evict him. “In a way, it was the best thing that happened to [...]

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Polishing Mortgage Turds: The FDIC Loan Modification Plan Will Not Work Without Massive Principle Reductions

by Moe Bedard

Polishing a turd definition: The act of trying to make something hopelessly weak and unattractive appear strong and appealing. An impossible process that usually results in a larger, uglier turd.
Example: She tried to look more attractive by getting plastic surgery, but let’s face it, you can’t polish a turd.
“Bottom line America, thousands of homeowners are [...]

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Let’s Use Fannie to Clean Up the Mess It Made

by Moe Bedard

Earlier this week, James Lockhart, the director of the Federal Housing Finance Agency and the government conservator of Fannie Mae and Freddie Mac, said that the two companies need to begin writing

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