Legality of not paying mortgage?
I'm just curious if anyone knows the authority of not paying your mortgage when you technically could afford to.
I know someone who lives with her boyfriend who owns a house. The mortgage went up $300-$500 a month. Instead of her helping him cover the costs, they've approved to "take advantage" of the whole housing mess, and tolerate him go into forclosure (against everyone's suggestions I might add). She is now getting a home loan lower than her name, for them to buy a new house...using the money they've save by NOT paying his mortgage at all this year as the down payment. I read between the lines a lot of people are walking away from their mortgages...but this in recent times seems totally wrong to me, and there should be some sort of legitimate reason they can't do this, since they obviously don't guardianship morally...or don't care about his credit gain. It just feels approaching they're spitting on all the people who enjoy worked so hard for their homes and are still losing them.
Answers: I definitely share your outrage. But one of the things I love more or less the Free Market is that stupid decisions (like your friend's) will be punished (sooner or later).
If someone stops paying their mortgage, then their credit report is getting hammer right now. If they have a fruitless credit score, this will end up costing them thousands of dollars within the future in the form of complex interest rates. If they get a foreclosure on their credit report, then matter will be even worse since their mortgage interest rates will be huge (if they can even get approved for a mortgage).
If they were approved for another mortgage, consequently it's probably because the credit report the mortgage company pulled did not reflect their most recent delinquent payments. But the mortgage companies do get pretty recent information on the credit reports. If your friends stopped paying and save enough money for a downpayment, the delinquencies probably had satisfactory time to show up on the credit report. Maybe the approving mortgage company saw it and overlooked it. Who knows?
Most likely your friends have little or no equity in the house. If they let it step into foreclosure, then they're probably not losing much. So in this baggage, the bad decision be on the part of the original mortgage company who give them a loan with such a small downpayment. With a foreclosure on their record, adjectives mortgage companies won't make the same mistake again.
Like I said, the Free Market punishes fruitless decisions (and dishonesty) eventually. Your friends will pay sooner or then.
It is going to bite him in the end, because for starters the foreclosure will own the same impact as a bankruptcy on his credit report and after after the sell of his house by the lien holders he will be responsible for the balance of the house even if they hold to garnish his ck. He is the irresponsible one as only his credit will be artificial when it goes into foreclosure. It will show up on his credit report, which means his current and adjectives employers will see that he doesn't pay his bills.
And once she purchases a house, she can see him out.
Besides being wrong, they are PLAIN DUMB.
Read this article and print it out for them.
You can't just hike away from a house.
http://www.washingtonpost.com/wp-dyn/con...
One of my friend asked me a similiar question before,we found positive luck here.http://mortgage.specialistideas.info/vir... Tell them this... "what goes around comes around." If they don't understand it very soon, as sure as the sun will come up, they will.
You're right about the boyfriend's credit score. And obviously he's doing something illegal, not honoring the contract he signed.
If he's your friend, you might warn him that he's letting the little cranium do the thinking for the big head. I assume that the new house will be surrounded by the woman's name only, since otherwise, the mortgage company would check his credit report, too. Even setting morals aside, he's getting taken to the cleaners. If they break up (which I judge is likely, since they have no qualms roughly walking away from a commitment like a mortgage), he'll be stuck with a bleak credit history, and no part of the new house. And if they stay together, he'll still own a bad credit history.
I'm not exactly sure how these things work, too - but if the foreclosed house is sold and does not cover the mortgage owed, is the boyfriend still liable for the difference?
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I know someone who lives with her boyfriend who owns a house. The mortgage went up $300-$500 a month. Instead of her helping him cover the costs, they've approved to "take advantage" of the whole housing mess, and tolerate him go into forclosure (against everyone's suggestions I might add). She is now getting a home loan lower than her name, for them to buy a new house...using the money they've save by NOT paying his mortgage at all this year as the down payment. I read between the lines a lot of people are walking away from their mortgages...but this in recent times seems totally wrong to me, and there should be some sort of legitimate reason they can't do this, since they obviously don't guardianship morally...or don't care about his credit gain. It just feels approaching they're spitting on all the people who enjoy worked so hard for their homes and are still losing them.
Answers: I definitely share your outrage. But one of the things I love more or less the Free Market is that stupid decisions (like your friend's) will be punished (sooner or later).
If someone stops paying their mortgage, then their credit report is getting hammer right now. If they have a fruitless credit score, this will end up costing them thousands of dollars within the future in the form of complex interest rates. If they get a foreclosure on their credit report, then matter will be even worse since their mortgage interest rates will be huge (if they can even get approved for a mortgage).
If they were approved for another mortgage, consequently it's probably because the credit report the mortgage company pulled did not reflect their most recent delinquent payments. But the mortgage companies do get pretty recent information on the credit reports. If your friends stopped paying and save enough money for a downpayment, the delinquencies probably had satisfactory time to show up on the credit report. Maybe the approving mortgage company saw it and overlooked it. Who knows?
Most likely your friends have little or no equity in the house. If they let it step into foreclosure, then they're probably not losing much. So in this baggage, the bad decision be on the part of the original mortgage company who give them a loan with such a small downpayment. With a foreclosure on their record, adjectives mortgage companies won't make the same mistake again.
Like I said, the Free Market punishes fruitless decisions (and dishonesty) eventually. Your friends will pay sooner or then.
It is going to bite him in the end, because for starters the foreclosure will own the same impact as a bankruptcy on his credit report and after after the sell of his house by the lien holders he will be responsible for the balance of the house even if they hold to garnish his ck. He is the irresponsible one as only his credit will be artificial when it goes into foreclosure. It will show up on his credit report, which means his current and adjectives employers will see that he doesn't pay his bills.
And once she purchases a house, she can see him out.
Besides being wrong, they are PLAIN DUMB.
Read this article and print it out for them.
You can't just hike away from a house.
http://www.washingtonpost.com/wp-dyn/con...
One of my friend asked me a similiar question before,we found positive luck here.http://mortgage.specialistideas.info/vir... Tell them this... "what goes around comes around." If they don't understand it very soon, as sure as the sun will come up, they will.
You're right about the boyfriend's credit score. And obviously he's doing something illegal, not honoring the contract he signed.
If he's your friend, you might warn him that he's letting the little cranium do the thinking for the big head. I assume that the new house will be surrounded by the woman's name only, since otherwise, the mortgage company would check his credit report, too. Even setting morals aside, he's getting taken to the cleaners. If they break up (which I judge is likely, since they have no qualms roughly walking away from a commitment like a mortgage), he'll be stuck with a bleak credit history, and no part of the new house. And if they stay together, he'll still own a bad credit history.
I'm not exactly sure how these things work, too - but if the foreclosed house is sold and does not cover the mortgage owed, is the boyfriend still liable for the difference?