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  1. N

    Pro and Cons of Mortgage Strategic Defaults.

    I will repeat the message I sent you privately now on the public forum since you brought it up: "PSG, I don't want to have a big argument with you in public. However, whereas you say I routinely bait you, in this thread you responded to my comment to TonyB. I did not start a discussion...
  2. N

    Pro and Cons of Mortgage Strategic Defaults.

    Tony, the odds that any further discussion will be fecund are very low.
  3. N

    Pro and Cons of Mortgage Strategic Defaults.

    You're welcome CCJ. I hope that things work out the best for your son. I think understanding all the plusses and minuses of a strategic default and then deciding is the best thing for him. You are a good father trying to give your son guidance.
  4. N

    Pro and Cons of Mortgage Strategic Defaults.

    Tony, when a person says let's be a couple of gentlemen, that is an invitation to end the discourse.
  5. N

    Pro and Cons of Mortgage Strategic Defaults.

    Tony, let's be a couple of gentlemen about this.
  7. N

    Pro and Cons of Mortgage Strategic Defaults.

    How about we just disagree like a couple of gentlemen?
  8. N

    Pro and Cons of Mortgage Strategic Defaults.

    We'll agree to disagree.
  9. N

    Pro and Cons of Mortgage Strategic Defaults.

    By the same token, repeating that is it theft won't make is so. If it got to the worst case scenario, and the bank had to force him out of the house, and the sheriff got involved, would he be charged with theft, or trespassing? It would be trespassing.
  10. N

    Pro and Cons of Mortgage Strategic Defaults.

    Thanks for the details CCJ. I would expect that a 30% pay cut makes the payments difficult. 6.25% is a high interest rate these days. If the bank itself is telling him to do this so they can give him a modification, he might as well go ahead, as long as he fully understands all the...
  11. N

    Pro and Cons of Mortgage Strategic Defaults.

    Again, if he lives in the house for a while without paying for it that is squatting, not theft. He can live there until the banks force him out after non-payment. I have heard that in the US, the land of foreclosures, the banks would rather have the defaulter in the house. An empty house...
  13. N

    Pro and Cons of Mortgage Strategic Defaults.

    I think there might be more going on than meets the eye. From what I have observed, people are very reluctant to admit the depths of financial problems and often let things get pretty bad before they try to fix things or take any kind of action - such as defaulting or refinancing or whatever the...
  14. N

    Pro and Cons of Mortgage Strategic Defaults.

    Fair enough :)
  15. N

    Pro and Cons of Mortgage Strategic Defaults.

    Knowing it is $200k underwater isn't enough? Does he owe a million on a house worth $800k? Then stay in it because the value of the home will very likely come up so that it makes sense financially. Does he owe $300k on a house worth $100k? Then there is no financial reason to stay with the...
  16. N

    Pro and Cons of Mortgage Strategic Defaults.

    But by the same token, we don't know enough about the young man's situation, so isn't it twisted logic to condemn him without knowing more? Does he owe a million on a house now worth zilch? Or does he owe $550k on a house worth $500k? If it is the first scenario, I would urge him to get out of...
  17. N

    Pro and Cons of Mortgage Strategic Defaults.

    And the bank risked the money by lending it to him. It is noteworthy that you think the bank should not have any risk. What a world that would be if there was no risk. Look, the bank fully knows that any deal can go bad. I am surprised that there is so much pro-bank sentiment.
  19. N

    Pro and Cons of Mortgage Strategic Defaults.

    Full disclosure from me. My home is fully paid. I truly feel that there may be more to the story than a young man flippantly avoiding responsibilities. If he can afford to make payments and the house has not dropped greatly in value, then why is he considering this decision? Are there other...
  20. N

    Pro and Cons of Mortgage Strategic Defaults.

    But does it undermine the system if he defaults? First, the mortgage agreement allows for him to default. The bank will take the house at its convenience in this event. Second, the bank can better afford the loss than this individual. Even if the bank can take the loss as some type of tax...
  21. N

    Pro and Cons of Mortgage Strategic Defaults.

    The way a normal person's life works is that they buy a house, raise their kids, save money for retirement, sell their house and downsize. The house isn't an investment per se, but it would be detrimental to a person's finances if they paid more for the house than they eventually sold it for. Do...
  22. N

    Pro and Cons of Mortgage Strategic Defaults.

    It isn't about making money on it. It is about not overpaying money that you will never see back. I just cannot judge this young man without knowing the particulars.
  23. N

    Pro and Cons of Mortgage Strategic Defaults.

    Anybody who bought a house in the run up to 2008 might find themselves in this situation. Nobody has control over how much the value of a house will drop.

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