***Reasons the people "throw in the towl"***

[THEHOMEGUARD]

I know a capital reason that I decided enough was enough, was when I saw my home depreciate through the floor. I was a ways off from having my ARM adjust, but the payment doesnt make as much since when the market is in the tank. I know there is ALOT of financial duress out there, but I want to know how much the sheer element of the housing price slump has on peoples willingness to keep going. Would it be possable that falling prices is actually "as large of an issue" as financial duress (ie. ARM adjustments, strain, ect) with people throwing in the towl?

[Andrew]

IMHO the reason home prices are falling is because of all the foreclosures happening , which are lowering surrounding home prices. And that is all due to the huge subprime mess by lenders.

[THEHOMEGUARD]

Yes, I agree that the whole idea of teaser rates adjusting "one day" was a bad idea (by lenders), but why the mass exodus from homes, from the owner perspective. Is part of the epidemic, the fact that homeowners see their home fall 25% and just say "heck with it" (while not acually having an unexpected hardship)???????

[Andrew]

On this site I see more people actually have hardships or when their rates adjust they can just no longer afford it. For instance mine was supposed to jump to 12.9% from 8.29% and being that we lost one income this past year it just wouldn't have worked. For some people if their house is worth less then what they owe they may walk away.

[Brian K.]

Most people figure that they can stop making payments, pocket the cash, fight the foreclosure as long as possible and let the bank trash there credit. After a year of no payments to the bank they have no credit card debt, the cars are mostly paid and the credit score is about 2.

They rent for a year or two at a very reduced amount for the same house and rebuild the credit. They are out of debt, no more stress and are on the way up while the market is on the way down.

[n8tvca70]

Is it costly to fight? I cant make payments for lawyer fees up front - How does one fight with a lawyer if he cant afford his mortgage in the first place -Wouldn't all that extra income be to the lawyer fees? I wish I could find a lawyer in my area ((3 close friends who are excellent lawyers but would never ever divulge my situation with them - too humiliating)) that I could speak to and get some direction...

[sparky]

Right now I have 50-70K equity. It is hard to know from day to day how much it has gone down. I will throw in the towel when it gets down to 20K.

[Brian K.]

n8,

You can do it yourself for free.

[n8tvca70]

How? Is it as effective? What is your opinion on BK - Should one file if they are in Loan Modification and it is too close to the foreclure date? I haven't recvd. a Foreclure Notice as of yet but I did recv. Notice of Rights (State of CA) How close am I and do I have time to file for BK simply on premise of saving our home/buying time? Also one more looming question - If I file BK do I have to give my car up since it is paid off? I need it for work nd school transpo for the children...I am referring to CH 13

[n8tvca70]

PS I cannot imagine throwing in he towel - I will fight until I cant anymore - Even if I am upside down on my home I will still fight because I want to live in my home and I love my home. I do not care if I have zero equity but more that my childrens' lives are not disrupted and turned upside down.

[6wolverines]

We are doing battle with ourselves over this very issue......We DID have unexpected hardships; my job was outsourced to India twice in 1 1/2 years and our autistic son attempted suicide. Our medical expenses are averaging $350.00 a month out-of-pocket after insurance has paid and my husband's child support obligation just went up last week by $158.00 to $605.00 a month for 1 child. We have a crappy interest rate (although it is fixed) and First Franklin is jacking us around on the modification application with delay after delay.

In my right mind 2 years ago the very thought of NOT paying the mortgage would NEVER have crossed my mind. But now, we're taking hand-outs from my parents, turning the furnace down to CHILLY at night and have stretched every dollar to the breaking point.....and we're still sinking in the quicksand.

The thought of just staying here until we are physically removed and all the while stashing away the mortgage payment and then renting for a while actually doesn't sound half bad at this point. I wish I could convince my husband of this. No more stress......now that is the AMERICAN DREAM!!! Our credit is trashed already with the deliquencies and if the situation stays the same it won't get any better anyway!!!!

Char

[Andrew]

Chapter 13 you can keep your house and car. But you will be on a payment plan through the courts.

[n8tvca70]

this willbe my last ditch effort so I know Ive exhausted all options.
just called chase again to confirm receipt of fax - nope AGAIN fed ex and read recpt request NOPE not recvd. or noted takes 15 days to process a fax I don't have 15 days - foreclosure starts February 1 ... what to do???
I am making a pymnt beefore this date to hopefully buy some time..

[elpjohnson]

n8tvca70,

Have you tried faxing the info again (maybe 3times) and then call and call until you get some answers? I know that most people think if they fax it once the lender should have received it right? Not true. YOU have to do everything in your power to get this information to them and if it means blowing up the fax machine until they get it then that's what you have to do. I think it's ridiculous that they haven't even received your FEDEX package either. Unbelievable! Like I said, you have to be persistent and nice BUT firm and maybe you will get somewhere. Just DON'T GIVE UP until you get the answers you need.

I hope this helps! Good luck and my prayers are with you.

[dealingwithHomeEq]

I believe there will come a time in the near future when the tables will turn and it will be the lender/servicer who is desperately trying to fax paperwork and qualify the homeowner for a modification.

When values drop to the point that most everyone is upside down in their home to the tune of a few hundred thousand, then the banks will have to look at the person who is most likely to pay the most to stay in the home. Think about it: most of us could probably go across the street and rent the same home for a few thousand dollars a month less than our current mortgage. But we would also be willing to pay a few hundred dollars a month more than our house would rent out for if we could stay in it (at least I would).

[elpjohnson]

I, too, believe that this will happen. It will soon be common for lenders to do loan modifications because of the downturn in the market. It's just a matter of "when" it will happen and will it be too late for all of the people who are already in foreclosure as we speak.