Comments on: Walking Away from Your Underwater Mortgage is Not the Solution

By: Wil

Wil — Wed, 23 Nov 2011 07:07:51 +0000

I purchased my attached townhome in 2005 for $285,000. Since then, it declined rapidly. I found out recently that a similar unit that I own was sold for $102,000. Earlier this year, my lender approved my modification due to comparables around the area of $186,000. I filed the modification on my own. I was also qualified for Chapter 13 bankruptcy last summer for my unsecured debts only. For about two months now, I received a paycut from work and struggling at the moment so I mentioned this to my bankruptcy attorney so he adviced me to file for Chapter 7 to ease financial burden by eradicating my Ch. 13 monthly payments. We are in the process of filing the Chapter 7 bankruptcy which I qualified due to the paycut.

After the Chapter 7 is approved, is it wise to walk away from the property since I am $178,000 under?

By: Tim

Tim — Sun, 20 Nov 2011 15:40:10 +0000

As far as the banks going after you, they can only do that if your state allows for deficiency judgments – and even then, those can be eliminated in bankruptcy. Stop letting the banks bully us around. If everyone walks away, then the banks may finally realize that their only solution is to offer real relief – specifically, write down of the principal balance. Yeah, that means the banks lose the money, but they are going to lose it when you walk away anyhow. And contrary to the nonsense in this article, no, the government (remember, you elect those in the government) and the courts (also, some judges are elected – depends on state) are not more likely to be more sympathetic with the banks than with the consumers getting screwed over by the banks.

If the banks want avoid having to filing a million more foreclosure actions and stockpiling foreclosed homes that they cannot sell due to the flooded market they created, then they need to write down the principal balances now – they’re gonna have to do it and take a much bigger hit when everyone walks away, so they might as well do it now and at least avoid the foreclosure process expense and collection attorneys’ fees if they try to collect on deficiency judgments (the banks will end up paying the attorneys’ fees and eating the deficiency judgments when the people file bankruptcy, so they’re gonna lose either way). The banks created this mess; the banks can take the hit for the mess they created.

By: Tim

Tim — Sun, 20 Nov 2011 15:30:44 +0000

This article is nonsense. The solution IS to WALK AWAY from your underwater mortgage. If enough people do this, then the banks may get the message. This mess is the BANK’s fault. (And don’t give me that nonsense about how the government forced the poor big banks to give loans to people who really couldn’t afford them – the banks that have how powerful of a lobby? The banks that were able to force Congress to totally rewrite the bankruptcy laws in a very stupid way not too long ago? The banks who took the bailout money, but now do not do anything to modify mortgages for people who are struggling – thus forcing these people into foreclosure, thus flooding the market with foreclosures and lowering all property values in the area – including mine?

Poor banks, my a**!!! If the banks didn’t want to offer loans to people who allegedly could not have afforded them, the banks could have simply got out of the mortgage business – I mean, why stay in a business if it is going to make you lose money? Congress would have got the hint). THE SOLUTION TO THE UNDERWATER MORTGAGE IS THE SAME AS THE TITLE TO A KELLY CLARKSON SONG – WALK AWAY!

By: Anonymous

Anonymous — Mon, 24 Jan 2011 20:33:34 +0000

My underwater loan is also being held by HSBC. They FLAT OUT REFUSE TO HELP. My credit is great and I have never missed a payment. Still they calim that there is no way they can help me by lowering my interest rate.

What a crock! If they hold your note, they can do anything they want to. There seems to be no help for people in my situation. I promised them that I would write my representative and the President, and I did. I also promised them that I would tell everyone I could how they have treated me. DO NOT DO ANY KIND OF BUSINESS WITH HSBC!!!!! They will do nothing but fleece you!!!

By: Anonymous

Anonymous — Tue, 27 Apr 2010 17:29:58 +0000

My mortgage is underwater by approx. $120,000. My mortgage holder is HSBC with a 10% interest rate. I don’t mind paying on all the lost equity but HSBC will not lower my interest rate. Any suggestions would be appreciated, I am current on my payments but have exhausted all my savings trying to stay a float.

By: Anonymous

Anonymous — Thu, 25 Mar 2010 03:23:30 +0000

If you are seeking bad credit home loans you have to consider few important things in choosing a mortgage lenders. You have to do research first and compare their offers and you have to make sure that the interest rate is low, the lender is legit in the market to avoid scam, the terms and conditions are easier to comprehend.