I made a very tough decision today...

Originally posted by elevatedone
First of all, you are defaulting on a loan that you agreed to pay back, shame on you.

You can afford your payment, but you're just choosing not to.

Don't count on living off your wife's credit score. Is her name on this mortgage also?
If you try to rent, you will be listed as a tenant in the residence and they will check your credit score and it will hurt you.

Personally I don't believe your story, but to each his own. You signed, you should pay.

Her name is not on the Mortgage. I understand you don't believe my story and that is ok, I actually never posted this to convince anyone of my situation.

Again I would like to bring attention to the fact this was a very tough decision.

Traditionally and prior to the state of this economy I would agree that "I signed, I should pay" however I have had a change of heart because the outlook of the situation we will be in if we keep this house is undesirable, and ultimately why? Because I needed a place to live?

I wasn't buying a house to be some kind of flip it and profit salesman. My house is not a risky stock decision. Its where I sleep it night. Its where I live my daily life when I am not working. Its a necessity, not a commodity.

I played the game and I played by the book, I did everything as ethical as possible and now I'm in a corner. I graduated school, went to college, got a degree, got a job, payed my bills, built a decent credit score, bought a residence to take pride in and live in, and what do I have to show for it?

-A house that is depreciating like a vehicle
-No option for refinance
-No possibility for sale

If there were some more reasonable approach to keeping myself from drowning in debt and enslaved within this house other than having "faith" the economy will return to normal, I would be open to it...but sadly there is none. None that I can seem to find...

You may say, "you should suffer the consequences of your decisions!!!" There is a consequence for wanting to have a house to live in? Somewhere to sleep at night? All because I'm not a financial economic Prophet and couldn't see what was going on in the housing industry?

I'm not claiming my situation is any worse than others, in fact I know many others have it much worse, but I don't think sticking it out in their depreciating homes in "faith" that the economy will recover will make their situations any better....

sly1one,

I personally feel that you have made a wise decision.
I agree with your thoughts/feeling..
and feel you have spoken them well.
Good job.

Thanks for doing what you knew needed to be done..
that is a very hard thing to do..

Good luck and blessings.

Originally posted by davespanners
Are you sure you have researched this properly?

This is part of the Colorado foreclosure procedure

DEFICIENCY JUDGMENT: If the debt on the home exceeds what the lender thinks the home is worth, a homeowner could still owe the lender money even after the loss of the home. If a court can be convinced that the lender bid less than a good faith estimate of the property's value (minus holding expenses) at the public auction, then a DEFICIENCY JUDGMENT for additional debt may be avoided. Otherwise the owner of the property will be held responsible for the deficient amount.

link

I wonder how seriously your taking this if you don't know something that took me 3 minutes to find with google

All the attorneys that I have talked to said they haven't seen any foreclosures going that far.

reply to post by Sly1one

I guess what I'm alluding to is that my money in silver will be worth more than that same amount of money in paper dollars when SHTF.

No, it won't.. and assuming your "shtf" scenario is a total collapse of... everything .. which never happens by the way, then it will still be worth nothing. At that point a can of beans and a hotdog will be worth all the silver in your little horde. But for good measure, in this post apocalyptic world of yours you'd probably be killed for your little silver stash, or it'd be tossed to the side in their search for that can of beans.

You place to much trust in material goods my friend.

I think you miss everyone's point as to why you're a deadbeat.

Someone who looses their job and looses their savings and is kicked out.. they deserve our sympathy.

Someone who stops paying but remains in the residence to "live for free" while they gather a pile of silver coins....

We call those people douche bags.

reply to post by Sly1one


Well as long as you have had some legal advice I guess you are safe

Originally posted by davespanners
reply to post by Sly1one

 

Well as long as you have had some legal advice I guess you are safe

I'm not convinced I'm safe and honestly I'm a bit frightened. I have done what I can to educate myself on everything, and have talked to professional after professional in the areas of legal advice, asset management, economical, investment managers.

I never claimed this was fool proof or 100% guaranteed or not a risky endeavor and I never tried to tell others to follow in my path. I simply shared a very difficult decision I had made and I get crucified because why? Because i chose for my own situation (which none of you live in) to do something perceived as unethical?

I've expressed my attempts and participation ethically in this train wreck of an economy/society..

Where it has gotten me, and if I continue to participate like a good little debt owning slave I will be rewarded with what? A house that is worth less than what I owe on it? Simply because there are unforeseen forces at work within this corrupt economy that make necessary items like housing a "risk" to purchase? I have to play a "risky" game to shelter myself?

Well if that is indeed the world we live in, ethics are completely impractical and do not apply.

again this is a frightening endeavor for me and I'm not sure how its going to play out...

reply to post by Sly1one

If "dead beat" means: refusing to submit myself to servitude of increasing debt because corrupt illogical elitist bankers wanted to do an epic transfer of wealth and destroy a once great country all in one swipe, then yes by all means I'm a dead beat.

Who agreed to the terms of the loan???

Oh yeah...that was you.

But go ahead and blame your problems on an invisible boogie man...throw away self dignity and personal responsibility...it's the cool thing to do on ATS these days.

Oh...and make sure to complain about the "powerful elites" not being responsible...as you yourself being irresponsible.

Originally posted by AbandonFaieth

Originally posted by Sly1one


I live in Colorado, my payment is $1000 a month, I have lived there 2.5 years

I live in Colorado...and i want to know where you are at...any mortgage in colorado is usually alot more then 1k. My parents have lived in the same house for 10 years and their payment is almost 2k

1k is barely enough per month to pay rent in some places. and also if you are just going to leave your mortgage and move to someplace you would pay rent doesnt that kinda defeat the purpose?

Exactly what I was thinking. When I lived in Lakewood my apartment was $700 a month. If it is that low, I would tough it out- heck I rented a room to a professional to help make ends meet. I am not sure I would buy any gold at this point, maybe some silver rounds. I would buy food, water purification, ammo, clothes, guns and other survival goods.

Just because you walk away does not mean you are off the hook. You are still responsible for the loan. The house may not be worth the amount that you paid for it, but if you were to do a short sale at least you would recoup some losses that you will now, later spend repaying the mortgage company. I am thinking that you purchased too much home at the time and you do not have enough equity to refinance- but you could have gone with bankruptcy and that would have at least maybe saved your home.

Sly1one you are not as sly as you think, and you should know by now that the whole market thing is just one big bubble within bubbles the only thing sustaining it other then supply and demand of necessities, is that it always needs people to invest in it to keep it going, you see it's just a game with virtual points, and of virtual value which can be made out of thin air with the press of a few buttons and numbers, and even the whole supply and demand thing can be made out of thin air all you need to do is keep saying over and over what would be of value later, that you want to sell today, to somebody who wants value later, because it wont be of as much value later.

Now these metal's like gold and silver have been around for ages, so why is it in fashion now? because it is rare? and of substance and shiny? or can be in used for some things? or is it another self created bubble to keep the ones who invest in bubble going on and on and on. Nobody really owns anything really because it will all be gone when your gone, and the only trick is to know that everything is of perspective's so therefore it can be put in a perspective that you want it to be seen.

And there are so many tshtf scenarios, that the collapse of the dollar or the whole bubble investments of wall streets and the scarcity system is laughable, it really is on the bottom of things that you should be scared of in the scope of tshtf scenarios. But even if that happened what makes you think you did the right decision, what makes you think gold and silver is of value now or in the future, I mean sure its shinny and all. But what if you fears come true and the whole thing goes kaput wouldn't you be left with a bunch of virtual points, on a board that wouldn't matter at all, and a bunch of shinny metals somewhere which you bought for some reason and would probably be worthless because everybody else is trying to just fix up there house and maintain there land, and no time for the shiny stuff. You could of traded your house which is not worth much now, for something that maybe wont be worth much in the future, but is in demand now, who is really making a profit off gold the ones selling it now, or the ones buying it now. You see round and round it goes, you would be better of just sticking to something that you can see and maintain, then always trying to find the one big payload of the future in the investing game because it is a game and a show, and the show must go on so the people can play and things can be moved from here to there, or there to here, and above all you must, pay no attention to the man behind the curtain.

reply to post by Char-Lee


There will come a time where food is the most important thing for a family. If the current structure of food production is under threat.

Gold is considered valuable due to the fact it is the most conductable metal of electricity.

A lot of times it isnt as simple as "walking away" as you call it. After the foreclosure has been performed, this is only the beginning to the litigation. The mortgager can come back at any point within x number of years from a foreclosure and they can file a personal lien against you and attach it to your credit. This is more or less a personal lawsuit, which you will not be able to defend against because you have to show insolvency.

Otherwise they can come after you, seize and sell personal property, garnish income and other assets. Keep in mind also, once you are married then by law your spouse assumes a large obligation regarding your personal debt as well. Unless you can file for bankruptcy on your own, you will each be subject to legal action. Qualifying for a bankruptcy these days is very difficult, and being that you make enough income to pay your mortgage and to buy gold and silver, odd's are you will not qualify. You will only be able to file chapter 13, which is a schedule of repayment of debts.

You should consult an attorney in the state where you reside before doing anything you may later regret.

couple of quick points.

1/. why are people so pissed off and horrified that he is going to live in the house rent free till he gets kicked out....he is only ripping off the people (banks) that have probably done it to him for years. so i say go for it....live there rent free till the last day possible.

2/. if i have read right...you have a six year old house in a nice standard suburb for $160,000. OMG..you cant even buy a dog kennel in australia for that. seriously, you cannot buy a house anywhere in sydney that is less than 50 years old for less than $300,000.

www.realestate.com.au...

this is just a basic example of a old house. about 1 and 1/2 hours drive (2 hours in peak time) from sydney. the monthly mortgage repayments on this is about $2,250. so i say bring on the bubble bursting in australia.

You can't just "walk away" from anything these days. It's not the wild west where no one would ever find you if you disappeared into the wilderness. No, your debt will follow you like a ticking clock in a Neverland croc.

I dont know why someone would invest all their spare money into gold, lose your house. along with all that money you put into it . how long you you have left on your mortgage. you say that your wife is your back up, what if she gets pissed off and leaves?

Can't you sell your property to pay off the mortgage, you might be able to get some extra cash

reply to post by MR BOB


Mr. Bob. You can't understand and neither can I. I think it's because the OP is full of it. This thread is just another rant against the government and large corp evil.

I would imagine the "future" could possibly include "debtor's prison", whereby your physical body will work off this decision. Your debt will be with you for quite some time. Someone is going to have to work for free when money is broken; I guess all that gold and silver will pay off a detail clerk who assigns what tasks need to be done.

Why would life be as easy as "walking away"? I do not think anyone is ever free to just walk away; when they pull your SS# during the "end-times" processing they will likely say to themselves, "another one off to the work camp"! Of course I guess we can just deny who we are and we can fall under the General Category of "Societal Debt" which means that every citizen has "X" amount of National Debt that they must work off. For their Freedom of course!

Realistically you will still have to pay rent in the future, that is a negative draw on your money. I would think in Colorado finding anything below $800 is going to be tough. Hopefully it has enough space so you can grow your own food and meat; perhaps have an orchard or some means of support. Ideally any land can support itself if the caretaker is aware and proactive; but what kind of landlord will permit such a thing? Most homes are landscaped the way they are without any means of transforming them unless you own them. Even home gardens are an issue with Land Barons and their ever needing Baronesses who only want your monthly contributions.

I think "walking away" is running away, but I also see where the OP is using his head at protecting his own interests, even if those interests are self-serving. I would probably do the same thing. Time to start seeking the Universe in the affairs that are "unknowns". Asking Great Spirit to step in so that you can walk the path that you are choosing as a "good" soul and by allowing those doors of opportunity to open. Be careful what you ask for! Be specific because the Universe genuinely wants you to be absolutely happy in this Life. It is, after all, all you have that is yours.

Good luck and choose your path, do not let your path choose you otherwise you will have regrets, it is time to step out of Society's trappings and save yourself. I am not too certain that precious metals are the answer. I say invest in yourself, your knowledge of things, and invest in those things that will enable you to support yourself in the future. Those things that can actually create a product or need that can be bartered or traded, then you will be Free!

A goat would be a worthy investment! Best to get a girl goat though.

I don’t get it?

He can make the payment and in 20-25 years the house will be his free and clear no matter what the retail value is. In the mean time he still has a roof over his head.

If the value has dropped then go see the tax assessor for a reduction in taxes. Cheaper still!

What makes him think he is better at predicting the metals market than he did the housing market?

Just because those particular lawyers haven’t heard of the banks going after people who have walked away doesn’t mean it doesn’t happen. Nor does it guarantee that they won’t start.

So he defaults, the banks come after him, his credit is trashed. Then his wife gets feed up with all the legal hassles and phone calls and divorces him. What then? Don’t think you will never get divorced, I was blind sided myself. Then she gets half the silver and he gets ALL the house debt.

Robbers can’t drive off in the night with a house. But silver?

I remember selling a few stocks after losing about half their value. It hurt all the way down. It hurt to admit I was wrong. I dropped out of the market for a few years because I felt burnt. A couple of years later, I happened to look at their value and they were above what I had paid. Boy did I really feel stupid.
What I learned was: If you are not in at the leading edge of a trend you will never benefit from it.

reply to post by Rockpuck

If you buy Silver at $30/oz and you sell it for $180 .. that $180 has the same buying power as $30 ...

Perhaps over long-term, but over this year silver has gone up over 40% and I can still buy a loaf of bread for the same price as in January.

He’s essentially betting the farm that metals will continue up.
Chasing trends only puts money into someone else’s pocket. I’m afraid he’s going to lead his family into the streets. Even if he buys the actual metal (coins) he’s playing the commodities market. Is he an expert in the metals? No! So he’s going to lose.

That $1000 x 10 months in metals can turn into $5000 in a few short months. But do you really think he will put all of the $10K into metals? Or is he going to put half into a savings account so as to not have all of his eggs in one basket?

The only way he can win is if the US economy takes a severe turn for the worse. If that happens he will likely lose his job and use the profits for food. That’s not really a win either.