Strategic Mortgage Defaults: The New Normal

[mainejeff]

This 60-minutes piece spells out exactly the fear I have with the current economic environment....people's changing philosophies regarding their commitment to repay borrowed funds and the impact that has on their credit score...as the guy in this story says, "seems like it's the 'in thing' to do these days"...

" onclick="window.open(this.href);return false;

Combine THAT with the story on the local website this a.m.

http://www.azcentral.com/business/reale ... aults.html" onclick="window.open(this.href);return false;

People abandoning houses and mortgages they can afford - or walking away, as it is now commonly known as - has become a polarizing issue between homeowners and lenders.

Thousands of Phoenix-area homeowners owe more than their houses are worth and don't want to wait as long as five to 10 years for home values to rebound. Others have unsuccessfully tried to work out loan modifications with their lender. Some believe it's a smart business decision to stop paying on an asset they can't sell for its current value. So a growing number of homeowners are considering walking away or have already done so, committing what has become known as a "strategic default."

The story itself is rather innocuous, but the COMMENTS display the mindset that is overtaking the American public....a mindset that will bring down the entire financial services industry if it takes root. There ain't enough money in the US treasury to pay for this, folks...

Joe American is becoming savvy.........just like Corporate America.

[mainejeff]

Aren't they just following the lead of Wall Street?

Does that make it right???

What would CONKS do?

[mainejeff]

Does that make it right???

Is it really wrong though?

I mean, I don't know much about the lending process, but isn't the essential agreement that the person pays or loses the house? If they don't pay, then was anything in the agreement broken if they did lose the house?

But what about the bank execs and shareholders?!?!.......

[AZGrizFan]

This 60-minutes piece spells out exactly the fear I have with the current economic environment....people's changing philosophies regarding their commitment to repay borrowed funds and the impact that has on their credit score...as the guy in this story says, "seems like it's the 'in thing' to do these days"...

" onclick="window.open(this.href);return false;

Combine THAT with the story on the local website this a.m.

http://www.azcentral.com/business/reale ... aults.html" onclick="window.open(this.href);return false;



The story itself is rather innocuous, but the COMMENTS display the mindset that is overtaking the American public....a mindset that will bring down the entire financial services industry if it takes root. There ain't enough money in the US treasury to pay for this, folks...

As the 60 Minutes piece mentions, some of the biggest walkaways in real estate in the past couple of years have been by Morgan Stanley and other banks.

What's good for the goose is good for the gander. I don't feel sorry for banks.

At all.

And that, my friend, is what's wrong with America and ultimately what's wrong with the entire concept of "bailouts". The paradigm has shifted....people want their piece of the pie....if gov't can bail out businesses, why not ME? The concept of actually having MORALS (despite whether "big business" has them or not) has become uncool. As the guy says in the 60 minutes story, walking away is "the 'in thing' to do!"

Personal integrity has gone by the wayside. Justifying it by saying that "businesses do it" doesn't make it right. It just makes you a piece of shit right along with the businesses. And let's be clear here---I'm NOT talking about the folks who had job losses and couldn't pay. I'm talking about those making a purely financial decision based on the value of the property. They have the capacity to pay, and didn't MIND paying when the value was going up....

Perhaps I look at it differently than some of you here, but I couldn't look myself in the mirror knowing that I used someone ELSES money, then purposely walked away from that obligation after I'd given my word I'd pay it back. If, as an American, that doesn't bother you then you're a piece of shit who shouldn't get another DIME from a financial institution---EVER. And as the CEO of a credit union I can assure you that as long as I'm running this shop there will NEVER be a single dollar lent out to any member of this organization who did what these pieces of shit are advocating.

And BH, although I quoted your post, I'm using "you" in the collective sense.

[mainejeff]

Wall Street might have it's bad seeds, however... Aside from the military, the government is a catastrophic failure at everything it attempts.

Wow - I feel stupider just reading that drivel.

If the Government is such a failure, how has it survived so long?

Many, many great achievements by the United States. Sorry you hate your country so much - try Somalia instead.

Exactly.

How many Corporations in this country are older than our government?

[AZGrizFan]

Wow - I feel stupider just reading that drivel.

If the Government is such a failure, how has it survived so long?

Many, many great achievements by the United States. Sorry you hate your country so much - try Somalia instead.

Exactly.

How many Corporations in this country are older than our government?

Talk about drivel. What a stupid fucking question.

[mainejeff]

I feel sorry for the sad pathetic outlook you have about our country.

It's the CONK way.

People like JSO, Baldy, etc, etc can't wait to go "rogue" on this country and make it a free for all..........they want ANARCHY so they can re-set the island.

[mainejeff]

I like how guys like you hate the fact that businesses are in business to make money.

You think they should hand out sandwiches and kool-aid free of charge to everyone.



When you start a business the object is to make as much money as you can for your company, your family and or your shareholders. You see, people buy stock in your company to MAKE MONEY.......they wont buy it if you dont make them money.

BTW Gordon Gecko says hi.........greed is good.

And some companies are good corporate citizens and operate within the laws of our country.........and some don't.

[mainejeff]

It seems that everyone EXCEPT the honest middle class worker who doesn't lie cheat and steal is being rewarded by the regime with unearned entitlements.

What makes people in the "middle class" any more honest than any other person in this country. You sound like a politician running for office.........

[mainejeff]

BP cant pay to clean up the mess in the Gulf. In about a month, they will be asking the federal Government for help. Just Watch. I dont care if a company makes money, but dont screw up and act likes its not your fault.

The taxpayers shouldn't spend a dime until BP has spent their last dollar.

Watch the CONKS do an about face on this one though..........

[mainejeff]

The taxpayers shouldn't spend a dime until BP has spent their last dollar.

On this point, we are in complete agreement...

There's hope for you yet.

[AZGrizFan]

It seems that everyone EXCEPT the honest middle class worker who doesn't lie cheat and steal is being rewarded by the regime with unearned entitlements.

What makes people in the "middle class" any more honest than any other person in this country. You sound like a politician running for office.........

don't worry, mj. He's not counting you in that group. When your entire job revolves around "do you want fries with that", you're not quite "middle class" yet. Keep charging, young fella, some day you'll move up to run the fryer!

[mainejeff]

And that, my friend, is what's wrong with America and ultimately what's wrong with the entire concept of "bailouts". The paradigm has shifted....people want their piece of the pie....if gov't can bail out businesses, why not ME?

Or maybe it's more like this........if businesses and governments can do anything to survive........then why not me?

[mainejeff]

Exactly.

How many Corporations in this country are older than our government?

Talk about drivel. What a stupid **** question.

One that you can't or don't want to answer........

[Baldy]

BP cant pay to clean up the mess in the Gulf. In about a month, they will be asking the federal Government for help. Just Watch. I dont care if a company makes money, but dont screw up and act likes its not your fault.

The taxpayers shouldn't spend a dime until BP has spent their last dollar.

Of course, that's how it is supposed to be. You break it, you fix it, but that goes against the "progressive" mentality of the left.

[mainejeff]

What makes people in the "middle class" any more honest than any other person in this country. You sound like a politician running for office.........

don't worry, mj. He's not counting you in that group. When your entire job revolves around "do you want fries with that", you're not quite "middle class" yet. Keep charging, young fella, some day you'll move up to run the fryer!

I don't work in the fast food industry........nice to see that you have an apparent snobbery for those that do though.

Funny how CONKS make fun of fast food workers even as they chomp down grease burgers at a record breaking pace........

[mainejeff]

The taxpayers shouldn't spend a dime until BP has spent their last dollar.

Of course, that's how it is supposed to be. You break it, you fix it, but that goes against the "progressive" mentality of the left.

[Baldy]

Of course, that's how it is supposed to be. You break it, you fix it, but that goes against the "progressive" mentality of the left.

More words of 'wisdom' from jeff...

[AZGrizFan]

And that, my friend, is what's wrong with America and ultimately what's wrong with the entire concept of "bailouts". The paradigm has shifted....people want their piece of the pie....if gov't can bail out businesses, why not ME?

Or maybe it's more like this........if businesses and governments can do anything to survive........then why not me?

Jeff, I'd expect nothing less from you.

[AZGrizFan]

don't worry, mj. He's not counting you in that group. When your entire job revolves around "do you want fries with that", you're not quite "middle class" yet. Keep charging, young fella, some day you'll move up to run the fryer!

I don't work in the fast food industry........nice to see that you have an apparent snobbery for those that do though.

Funny how CONKS make fun of fast food workers even as they chomp down grease burgers at a record breaking pace........

Is it not a fact that fast food workers aren't middle class? If so, then it's not "making fun" of them. And I wasn't aware there was a political affiliation necessary to order from McDonalds. I'll be sure and push the libs out of the way next time.

[ASUG8]

I don't work in the fast food industry........nice to see that you have an apparent snobbery for those that do though.

Funny how CONKS make fun of fast food workers even as they chomp down grease burgers at a record breaking pace........

Is it not a fact that fast food workers aren't middle class? If so, then it's not "making fun" of them. And I wasn't aware there was a political affiliation necessary to order from McDonalds. I'll be sure and push the libs out of the way next time.

Hurricanes, government corruption, the profit motive, childhood obesity, oil spills, private industry, and cancer are on the short list of things that Republicans created all by themselves according to MJ. There hasn't been a liberal conceived that had any impact on any one of those issues in our lifetimes. Once you accept it as fact, we'll all get along better here.

[Col Hogan]

Does that make it right???

What would CONKS do?

I don't know any CONKS, but as a conservative American, I say you sign an agreement, you stand by it...if you make money or lose, you agreed to borrow some money and pay back so much more than you borrowed...

People who stop making payments and live in their house are committing a felony (Grand Theft, due to the amount), and then they just walk away defaulting on their contract...

They should be punished by more than just a hit on their credit rating...personal responsibility, and all that...

[AZGrizFan]

I don't work in the fast food industry........nice to see that you have an apparent snobbery for those that do though.

Funny how CONKS make fun of fast food workers even as they chomp down grease burgers at a record breaking pace........

Is it not a fact that fast food workers aren't middle class? If so, then it's not "making fun" of them. And I wasn't aware there was a political affiliation necessary to order from McDonalds. I'll be sure and push the libs out of the way next time.

Update: This conk ate fast food today for lunch. I followed some Greenpeace granola bitch driving a Subaru into the parking lot and through the front door. As she was walking ahead of me I tripped her from behind, and while she was laying on the floor I kicked her mightily, right in the ol' taco. She screamed like a whiney little progressive bitch that she was. I told that bitch to get the fuck OUT of MY fast food joint and that only conservatives ate grease-burgers. Then I went out and slashed all four of her tires and poured sugar in her gas tank.

[houndawg]

The taxpayers shouldn't spend a dime until BP has spent their last dollar.

Of course, that's how it is supposed to be. You break it, you fix it, but that goes against the "progressive" mentality of the left.

It goes against the conservative mentality of "whatever I can grab is mine, the rest of you can pay to clean up after me".

Privatize the profit, socialize the risk.

[houndawg]

As the 60 Minutes piece mentions, some of the biggest walkaways in real estate in the past couple of years have been by Morgan Stanley and other banks.

What's good for the goose is good for the gander. I don't feel sorry for banks.

At all.

And that, my friend, is what's wrong with America and ultimately what's wrong with the entire concept of "bailouts". The paradigm has shifted....people want their piece of the pie....if gov't can bail out businesses, why not ME? The concept of actually having MORALS (despite whether "big business" has them or not) has become uncool. As the guy says in the 60 minutes story, walking away is "the 'in thing' to do!"

Personal integrity has gone by the wayside. Justifying it by saying that "businesses do it" doesn't make it right. It just makes you a piece of **** right along with the businesses. And let's be clear here---I'm NOT talking about the folks who had job losses and couldn't pay. I'm talking about those making a purely financial decision based on the value of the property. They have the capacity to pay, and didn't MIND paying when the value was going up....

Perhaps I look at it differently than some of you here, but I couldn't look myself in the mirror knowing that I used someone ELSES money, then purposely walked away from that obligation after I'd given my word I'd pay it back. If, as an American, that doesn't bother you then you're a piece of **** who shouldn't get another DIME from a financial institution---EVER. And as the CEO of a credit union I can assure you that as long as I'm running this shop there will NEVER be a single dollar lent out to any member of this organization who did what these pieces of **** are advocating.

And BH, although I quoted your post, I'm using "you" in the collective sense.

Well, me either, Z, but that paradigm wasn't shifted by us, it was shifted on us. For the last 40 years it's been the middle class losing wealth to the upper class and becoming steadily smaller. These days people like you and me, well, maybe not you, are nothing more than suckers and chumps; fair prey for the class who bets against the stuff they sell us.