This is Why You Shouldn't Pay Your Mortgage

Thursday, June 24, 2010 , , , 3 Comments



If you don't, Fannie Mae won't turn you in or tear your house down, they'll just make it so you can't get another one for seven years.

What's seven years? Now's a good time to rent, especially once new "homeowners" realize they can't afford their mortgage payments and need a little help with the bills. Not that they care, it's totally worth the $8000 tax credit I'm sure.

WSJ:

Fannie Mae said Wednesday it would "lock out" borrowers from getting a new loan for seven years if they default on a mortgage they could afford to pay.

The move represents the latest effort by the mortgage industry to prevent a new wave of losses that could result if more borrowers who can afford their monthly payments instead opt to "strategically" default on loans, because they owe far more than their homes are worth.

"Walking away from a mortgage is bad for borrowers and bad for communities, and our approach is meant to deter the disturbing trend toward strategic defaulting," said Terence Edwards, Fannie's executive vice president for credit portfolio management.

That's asking nicely but I don't see a 7 year embargo on your non-mortgage-paying ass as all that horrible of a punishment if they're trying to be threatening about it.

Remember when you didn't want to be the one guy on the block not paying his mortgage? Oh the humiliation. Now where's the guilt and shame? Replaced by failing Obama administration programs, "free" money and a race to shed the debt and break free.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

3 comments:

Anonymous said...

"Remember when you didn't want to be the one guy on the block not paying his mortgage? Oh the humiliation. Now where's the guilt and shame?"

Believe it or not but there was a time when having any mortgage of any sort on one's home when past the age of say 50 or so was deeply humiliating. The thought was "what the fuck is wrong with you? - grown man (or broad) who is supposed to be an older adult and still paying a monthly nut to some dink for your shack?"

Ever hear of such a thing as a mortgage burning party my dear JDA?

I think we're going to see those days again.

Jeff

Anonymous said...
Anonymous said...

highly recommended crapper reading for many

Be sure to pay attention to the section about deficiency judgments post foreclosure by state.