 |
bostonbubble.com
Boston Bubble - Boston Real Estate Analysis
|
|
SPONSORED LINKS
Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com
YOUR AD HERE
|
|
DISCLAIMER: The information provided on this website and in the
associated forums comes with ABSOLUTELY NO WARRANTY, expressed
or implied. You assume all risk for your own use of the information
provided as the accuracy of the information is in no way guaranteed.
As always, cross check information that you would deem useful against
multiple, reliable, independent resources. The opinions expressed
belong to the individual authors and not necessarily to other parties.
|
| View previous topic :: View next topic |
| Author |
Message |
JCK
Joined: 15 Feb 2007
Posts: 559
|
 Posted: Mon Feb 11, 2008 10:43 pm GMT Post subject: |
 |
|
| Hank wrote: | | JCK wrote: |
Maybe we should re-institute debtors prisons!
Lock 'em up, throw away the key! |
I know that was said with sarcasm - but any pointing of the blame to the borrower can be deflected back to the other groups involved in the selling of the home (brokers, lenders, assessors). There really is no single group here that has clean hands.
I actually think that these people who are walking are smart in the sense that they *are* treating the home buying as a pure business transaction, and that walking away does make the most sense (it's a complete write-off for them, however everyone else is left holding the bag- eh- isn't that what the government has been doing for a long time anyhow? Privatizing profit, publicizing the risk????). |
Hank,
I agree 100% that there are so many to blame here. The borrowers are the easiest targets to identify and relate to, so they seems to incur the most personal wrath on these boards.
It's simply hard to get emotionally worked up about ratings agencies and investors' misdeeds.
I too, have an odd appreciation for those walking away and letting the lenders hold the bag. But I understand that it frustrates folks who have been playing by the rules to see people acting this way.
We really really ought not to bail out either the buyers or the lenders who are stuck with these properties. The best solution is for the two parties to work out an equitable situation between themselves. |
|
| Back to top |
|
 |
admin
Site Admin
Joined: 14 Jul 2005
Posts: 1826
Location: Greater Boston
|
| Posted: Mon Feb 11, 2008 11:18 pm GMT Post subject: |
|
|
| JCK wrote: |
I too, have an odd appreciation for those walking away and letting the lenders hold the bag. But I understand that it frustrates folks who have been playing by the rules to see people acting this way. |
A desire to play by the rules is a big part of it, but there is more. Walking away doesn't just hurt faceless corporations. These mortgages have been repackaged and sold to pensions, towns, etc. Walking away hurts people relying indirectly on these loans for their retirement and communities relying on them for their finances. As one example close to home, this recently cost the City of Springfield $13M. I also remember reading about the large CalPERS pension fund being hit with losses.
It also directly hurts the neighborhood. Abandoned properties are a blight and attract crime. The supposed justification for why government subsidizes home ownership with so many incentives is that it builds stronger communities by giving people a vested interest in them. If this is true, then surely foreclosures have the opposite effect.
Those who are walking away because it is cheaper for them rather than because they are in true financial duress shouldn't be let off the hook for the collateral damage they are causing.
- admin |
|
| Back to top |
|
|
Hank
Joined: 27 Apr 2007
Posts: 37
|
| Posted: Wed Feb 20, 2008 1:34 pm GMT Post subject: |
|
|
Just a follow up on the topic; NPR now has their cover of the "You Walk Away" web site.
See here for their take.
Also, just a random addendum; Donal Trump once said that Bankruptcy was just another tool that he'd use doing business.
*shrug*
(Yes, I am feeling indifferent) |
|
| Back to top |
|
|
|
|
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present, bostonbubble.com.
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
