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Actually, there ARE circumstances in CA where the borrower can be on the hook for the difference between amount mortgaged and what the house sold for, depending on what type of contract they have with the lender.
California Foreclosure Law
Contracts vary of course. But let's say I'm 100% wrong and all states leave the borrower on the hook. That's what bankruptcy is for and more importantly, it's not my responsibility to bail out their bad investment decisions.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
Contracts vary of course. But let's say I'm 100% wrong and all states leave the borrower on the hook. That's what bankruptcy is for and more importantly, it's not my responsibility to bail out their bad investment decisions.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
Bank of America posted a profit in the 4th quarter of $2B. In that context yeah they can easily write off 100M.
If they can't fuck them. Let them go under. This is what bankruptcy law is all about. Lehman went under and it wasnt the end of the world.
Lehman went under and it wasnt the end of the world.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
Bank of America posted a profit in the 4th quarter of $2B. In that context yeah they can easily write off 100M.
If they can't fuck them. Let them go under. This is what bankruptcy law is all about. Lehman went under and it wasnt the end of the world.
LOL! Had we allowed all of the big investment banks to fail, the entire banking system would have fallen flat on its face. FDIC would go bankrupt, meaning ordinary folks like you and me would just lose our checking and savings accounts.
Not to mention nearly all of FDIC's assets are treasury securities, so even when FDIC has funds available to pay claims, its still coming out of the taxpayer's ass.
Lehman went under and it wasnt the end of the world.
Actually, it was the end of the world. It was only by government intervention that the end of the world was prevented.
Contracts vary of course. But let's say I'm 100% wrong and all states leave the borrower on the hook. That's what bankruptcy is for and more importantly, it's not my responsibility to bail out their bad investment decisions.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
Bank of America posted a profit in the 4th quarter of $2B. In that context yeah they can easily write off 100M.
If they can't fuck them. Let them go under. This is what bankruptcy law is all about. Lehman went under and it wasnt the end of the world.
Bad investment on your part. Should have bought less of a home and/or but more on a down payment...or rented. Next time, you'll know better. Either way, it's not my or another taxpayer's problem.
Tell us about the home you own that didn't lose any value in the past few years.
I got out of the real estate market in 2007. I now rent. I used profit I had made to buy a home for my parents to live for as long as they like. I chose a MUCH smaller (less valuable) home than I could have afforded and paid cash. Has it lost value? Probably but I don't care.
Should my conservative decisions and willingness to be flexible with regard to my personal investments be penalized by forcing me to bail out those that made bad decisions? I believe the answer is obvious.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
If the government can't help the people, then why bother having a government? Now , I'm not for paying off everyone's mortgages, nope. BUT there has to be a way the government can level off payments or allow people to make partial payments or SOMETHING to make sure that people who really are trying don't lose a home they've bought in good faith and are making an effort to keep it.
Deadbeats and other assorted riff raff who just want a handout? I don't give a shit about them.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
Bank of America posted a profit in the 4th quarter of $2B. In that context yeah they can easily write off 100M.
If they can't fuck them. Let them go under. This is what bankruptcy law is all about. Lehman went under and it wasnt the end of the world.
okay and my numbers were imaginary to. No telling what the real figures would be.
But in either case, you are behaving like a stubborn child. Anyone with any common sense could see that having BofA, or whomever, making SOME money off of mortgages would be better than seeing thousands homeless and BoA going under.
Oh, and here's another thing for some of yall to consider. If say 100K new renters flood the market, guess what's going to happen to rent. Oh that's right, the price will go up until no one can afford to rent.
Some of you are real geniuses.
You know you need to bring cash to closing to sell for a loss. How do you propose people bring cash to closing when many are barely getting by? Think about it. Try not to respond with something that sounds like a solution out of some Utopian society you've created in your head.
Good point...so you loose loose for your investment in a home. Sorry, that that's how it works. They gambled on their future...and lost. Nothing utopian about it.
You gamble on the market staying at its level or going up
You gamble on staying healthy long enough to pay back your loan
You gamble on your income being steady.
You gamble when you sign on the dotted line that everything will work out and you, and you come out a winner.
Buying a home was a not a serious gamble if one bought in a good area until the bottom fell out. You didn't have something like this happen to you so you seem rather flippant about your fellow Americans plight.
As long as number one is fine no one else's situation seems to matter. Okay.
I am shopping for a home where I will retire. I am seeing homes that were built in the 80's going for less than the cost of building them at that time. Many good people are taking a real bath on a situation they did not create. Really, really sad.
What you're stating certainly has happened to a number of people, but an equal number bought out of greed. Thoughts of flipping or watching their homes appreciate at double digit rates blinded them to the downside.
I say again, when someone defaults on their home loan, your 401k melts down that much more. You are the one holding the paper on that loan, fool!
Repeating stupid remarks only makes you look more stupid.
Bank of America posted a profit in the 4th quarter of $2B. In that context yeah they can easily write off 100M.
If they can't fuck them. Let them go under. This is what bankruptcy law is all about. Lehman went under and it wasnt the end of the world.
LOL! Had we allowed all of the big investment banks to fail, the entire banking system would have fallen flat on its face. FDIC would go bankrupt, meaning ordinary folks like you and me would just lose our checking and savings accounts.
Not to mention nearly all of FDIC's assets are treasury securities, so even when FDIC has funds available to pay claims, its still coming out of the taxpayer's ass.
All the banks were not going to fail. Try again.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
Bank of America posted a profit in the 4th quarter of $2B. In that context yeah they can easily write off 100M.
If they can't fuck them. Let them go under. This is what bankruptcy law is all about. Lehman went under and it wasnt the end of the world.
okay and my numbers were imaginary to. No telling what the real figures would be.
Actually, there ARE circumstances in CA where the borrower can be on the hook for the difference between amount mortgaged and what the house sold for, depending on what type of contract they have with the lender.
California Foreclosure Law
Contracts vary of course. But let's say I'm 100% wrong and all states leave the borrower on the hook. That's what bankruptcy is for and more importantly, it's not my responsibility to bail out their bad investment decisions.
I will ask again.
Let's assume Bank of America has 10,000 customers declare bankruptcy at an average loss of $50K each. That is a loss of $500M. Now let's be generous and assume they sell every single home at 80% of loan value or $400M . That is STILL a loss of $100M and that's just for Bank of America.
Do you REALLY think that Bank of America is just going to write that off as a loss and move on? Hell no, for one thing it's doubtful that they could absorb that loss. They are of course going to go to daddy government and get a bailout. So, the banks get bailed out and the individual gets to rent something they "can afford?" And please don't come back with " bailouts won't happen again" because that just isn't realistic.
That sure sounds like the American way to me. Not
If the government can't help the people, then why bother having a government? Now , I'm not for paying off everyone's mortgages, nope. BUT there has to be a way the government can level off payments or allow people to make partial payments or SOMETHING to make sure that people who really are trying don't lose a home they've bought in good faith and are making an effort to keep it.
Deadbeats and other assorted riff raff who just want a handout? I don't give a shit about them.
If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.
You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.
Government is not your mommy.
If you bought a house and now its worth less than what you paid for it.... TOUGH SHIT.
You can continue to pay the note and wait for the prices to recover (or pay off the loan) , arrange a short sale, or walk away and face foreclosure. Whatever happens, you need to buy a mirror and take a long gander at the person looking back at you....that is the person to blame.
Government is not your mommy.
LOL! Had we allowed all of the big investment banks to fail, the entire banking system would have fallen flat on its face. FDIC would go bankrupt, meaning ordinary folks like you and me would just lose our checking and savings accounts.
Not to mention nearly all of FDIC's assets are treasury securities, so even when FDIC has funds available to pay claims, its still coming out of the taxpayer's ass.
All the banks were not going to fail. Try again.
Name a single major U.S. investment bank that did not receive a "bailout" and that did not fail.
Thanks.
"All the banks were not going to fail. " Famous last words. Do you know how banking works? The money in your checking account mostly isn't really there. Its merely a promise to repay you money on demand, and most of it has been loaned out. If the folks the money is loaned to can't pay it back - and the FDIC runs out of funds - then you just lose your money, plain and simple.
