Comments on: Just Because you Crawl Today, Doesn’t Mean you Won’t Walk Away Tomorrow from a Home: The Next Chapter in the Foreclosure Crisis.

By: Dan

Dan — Mon, 12 May 2008 19:29:53 +0000

What is wrong with this articles lately ( 2 links mentioned above). I read the first from LA times. And where the heck is that good old jurnalistic style one opinion on one side another one on the other side and the poor sheeple don’t know what to thing anymore. You know, like in ol’ days some say “they are walking away” some say “they are not wolking away”. No single “walkig away” expert. No surprise this newspapers are all going straight to the trash can.

By: rido fudosan

rido fudosan — Mon, 12 May 2008 02:12:41 +0000

there is a scenario that i think is very likely but not documented in those sites:
simply, change of mood in capitol hill etc…they change the rules of the games…

THEY WONT LET PEOPLE WALK AWAY.. people who walk away will still be financially responsible personnally. they will have to pay. of course, people with no income at all and deeply underwater wont be affected, because anyway they CANT pay, but for all the others, they will become debt slaves

By: worm

worm — Mon, 12 May 2008 00:42:15 +0000

The fed will not go after you walk away from the original purchase loan for income on the debt that was not enforced.

But California did not change its rules. So you would have to declare the debt as income.

That will be a nice surprise for the walkaways.

By: oc bear

oc bear — Sun, 11 May 2008 22:05:39 +0000

We need to be clear of about our definitions. Walking away is not necessarily leaving the house and mailing in the keys. A smart person will not walk away when they can stay for free. It is a matter of choosing between food, fuel, access to a credit card or paying for a declining asset. Why leave when you can live rent free? The bank does not want your property when it owns more than enough property already. Of course this extends foreclosures over the normal 1 year horizon. The government’s new program only encourages to stop paying. You must be 60 days delinquent to qualify for some programs. So now you will hear stories of how people are “sticking it out”. I personally know people who are living rent free. If you ask them they will tell you that they are “selling their house”. Of course this reveals a lot less than walking away and paying rent.

By: Tyrone

Tyrone — Sun, 11 May 2008 16:00:49 +0000

What do you think?

I think you’re right on the money. Just before reading this post, I was chatting with someone and said, “As bad as people think things are right now in real estate, it’s a growing problem that is only going to get worse.”