This is an interesting article regarding the libertarian mindset and strategically defaulting on your mortgage.
To summarize some, most of us live in properties that have lost a sizable portion of their value (or will soon). There is a glut on the housing market that will exist for at least two generations (and probably longer than most of these homes will be standing.)
Yet because the Federal government is propping up the bankers and backing the mortgages, the banks refuse to reduce the principal on the loans.
So just how far are you willing to go to maintain "good faith and credit" with the bank that is receiving your tax dollars? Are you willing to work until you're 70 years old? Are you willing to put yourself, your wife, and your adult children to work to try and keep that mortgage payment flowing to that bank, even while the payments sent to them bankrupt the nation and destroy the economy?
The article mentions an interesting historical fact at the end. In the days of the hyperinflation in the Weimar Republic, in order to keep a roof over their heads, many families had to send their wives and daughters out into the streets as prostitutes.
How far are you going to go to keep your banker happy?
3 comments:
We tried for a year to get a loan modification. The bank drug their feet EVERY step of the way. They lost our paperwork once even. Eventually we were able to sell our home and walk away with only a few thousand dollars to show for 7 years of home "ownership". We were lucky to not be upside-down in our mortgage, and by the Grace of God we were able to sell. Had we not been able to sell, the bank would now have possession of that home.
Thankfully we didn't owe our "mortgage" to a bank, DH bought from a private owner. And 2x thankfully, we finished paying off the property just a week ago!
I do worry about my dad though. He and my step-mom have been struggling since he "retired" a couple of years ago. 2 mortgages on the house and neither will be "paid off" any time soon.
btw .. this is cnichols :)
The Bank stop favors long time ago. All about the money.tom wade
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