Re: Update on youwalkaway.com


Posted by jim on September 29, 2008 at 01:02:08:


In Reply to: Re: Update on youwalkaway.com
Posted by Paul on September 28, 2008 at 22:34:13:

Paul,

I'd argue that it's not really a "game that's being played" as you say. There are two facets, one is homeowners purchasing property for either a residence or investment, the second is the securitized investments or mortgages(trust deeds) that provide the funds to make those purchases.

If you purchase a property, you typically contract with a lender and agree to make payments in exchange for them providing funds to allow you to complete your purchase. The lender doesn't require you to share in any possible appreciation of the property, but they do expect you make the payments even if the property doesn't appreciate.

When a homeowner has an event in their life that creates a problem repaying their loan, they should talk to the lender and attempt to minimize the impact and damage for both the lender and themselves. That's what adults do, realizing they have contractual obligations and doing their best to fulfill those obligations. Some people will eventually have to walk away from homes they own, but they certainly don't need to pay an outside party as part of the process.

I'm not quite sure how the rest of your post comes together. Stated income loans were available and did lead to inflated values, but that doesn't have a lot to do with Yield Spread Premiums or Wall Street executive compensation or congressional "bailouts". There are some points where these issues do influence each other, but the points aren't very significant.

If the discussion is based on walking away from a home where the home has lost value, it's probably more productive to stay focused on that aspect rather than possible justifications for walking away.


Follow Ups:

Current Discussion

2008 Archives

2007 Archives

Earlier Archives