Thursday, January 21, 2010

Strategic Defaults, It's Time To Just Walk Away

Strategic Defaults, It's Time To Just Walk Away

Very interesting, The Financial Experts agree that people should walk away from the burden of paying a mortgage on a house that’s not worth the dirt it was built upon. I'm glad to hear murmurings from the “EXPERTS” like… HEY GUYS, IT'S OK TO DEFAULT. IT’S OK TO GO BANKRUPT. IT’S OK TO ASK FOR HELP. For too long, social safety-nets were only respectable for Corporations. For the rest of us this need was touted as shameful. The GOP and BLUEDOGS, since Reagan, have been quite vocal in suggesting that not having enough income to make ends
meet is, FAILURE. Of course, not enough income for a business was excused as something outside a corporation’s own doing, in other words NOT THEIR FAULT. Welfare reform won approval and was passed by a Democrat in sheep’s clothing. The upshot from this little humdinger made it almost a crime to ask for help,
unless of course, you were, YOU GUESSED IT, A CORPORATION. Since SCOTUS deemed corporations, people… they should be subject to the same SHAME as the rest of us “PEOPLE” who have succumbed to hard times.


PS: TALK ABOUT A HUMDINGER GET A LOAD OF THIS: SCOTUS Overturns Ban on Corporate Political Expenditures
Now China, et al can have a say in... WHO THE HELL WILL BE OUR LEADERS HERE IN THE GOOD OLE USA. HUH?

Strategic Defaults and the Foreclosure Crisis

Nearly a year after the Obama administration unveiled its
ambitious housing rescue program, foreclosure tallies continue to
break records. Foreclosure filings were reported on more than 2.8
million properties in 2009, up 21 percent from the previous year
and 120 percent from 2007, according to RealtyTrac. With nearly
10 percent of mortgages now delinquent--which is also a new
record--even more homeowners appear headed for foreclosure this
year. "A massive supply of delinquent loans continues to
loom over the housing market," RealtyTrac CEO James J.
Saccacio said in a statement. "Many of those delinquencies
will end up in the foreclosure process in 2010 and beyond."

Homeowners have found themselves in foreclosure for a number
of reasons. Some purchased properties they could never really
afford. Others lost their jobs--the national unemployment rate
remains in the double digits--and had no way to make mortgage
payments. But as the crisis rumbles forward, an additional driver
of home foreclosures has become clear: Many borrowers have the
means to keep paying the mortgage but are simply walking away
because they believe it's best for their finances.

The number of so called "strategic defaults" more
than doubled, to 588,000, from 2007 to 2008, according to a study
by Experian and Oliver Wyman. A separate 2009 survey found that
more than a quarter of all existing defaults were strategic.
Meanwhile, a growing number of academics are touting the
financial benefits of walking away. "Homeowners should be
walking away in droves," Brent T. White, a University of
Arizona law school professor, said in a recent paper. "The
financial costs of foreclosure, while not insignificant, are
minimal compared to the financial benefit of strategic
default." MORE HERE

Let's keep our heads, while we continue to
watch THE


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