Old and busted: Paying your mortgage. New hotness: Living in foreclosure without paying anything.

posted at 7:37 pm on June 1, 2010 by Cassy Fiano

The housing crisis is still ongoing. While the national conversation has shifted away from foreclosures in favor of unemployment and big government bailouts, many Americans are still in trouble with their mortgages. I seem to remember there used to be a time where, if you were in trouble with a loan, you would pay any little bit you could. Maybe you paid half at the beginning of the month and half on your next paycheck. Maybe it was even less than that. What counted was that you were making the effort. You work with your lender to avoid going into foreclosure at all costs.

That was then. Now, the new hotness is just to say to hell with paying your mortgage. Homeowners are letting themselves go into foreclosure with no intention of paying their mortgages, so that they can use the extra money on truly important things… like going out to eat at Outback and taking trips to the Hard Rock Casino.

For Alex Pemberton and Susan Reboyras, foreclosure is becoming a way of life — something they did not want but are in no hurry to get out of.

Foreclosure has allowed them to stabilize the family business. Go to Outback occasionally for a steak. Take their gas-guzzling airboat out for the weekend. Visit the Hard Rock Casino.

“Instead of the house dragging us down, it’s become a life raft,” said Mr. Pemberton, who stopped paying the mortgage on their house here last summer. “It’s really been a blessing.”

A growing number of the people whose homes are in foreclosure are refusing to slink away in shame. They are fashioning a sort of homemade mortgage modification, one that brings their payments all the way down to zero. They use the money they save to get back on their feet or just get by.

This type of modification does not beg for a lender’s permission but is delivered as an ultimatum: Force me out if you can. Any moral qualms are overshadowed by a conviction that the banks created the crisis by snookering homeowners with loans that got them in over their heads.

“I tried to explain my situation to the lender, but they wouldn’t help,” said Mr. Pemberton’s mother, Wendy Pemberton, herself in foreclosure on a small house a few blocks away from her son’s. She stopped paying her mortgage two years ago after a bout with lung cancer. “They’re all crooks.”

Get that? In today’s loony liberal land, it’s all the lender’s fault. It couldn’t possibly be the homeowner’s fault that they bought a house they couldn’t afford. Right?

Maybe not. The couple quoted in this story, Mr. Pemberton and Ms. Reboyras, aren’t exactly blameless in this situation. Just like most people who go into foreclosure, really.

The couple owe $280,000 on the house, where they live with Ms. Reboyras’s two daughters, their two dogs and a very round pet raccoon named Roxanne. The house is worth less than half that amount — which they say would be their starting point in future negotiations with their lender.

“If they took the house from us, that’s all they would end up getting for it anyway,” said Ms. Reboyras, 46.

One reason the house is worth so much less than the debt is because of the real estate crash. But the couple also refinanced at the height of the market, taking out cash to buy a truck they used as a contest prize for their hired animal trappers.

It was a stupid move by their lender, according to Mr. Pemberton. “They went outside their own guidelines on debt to income,” he said. “And when they did, they put themselves in jeopardy.”

So they refinanced their home to buy a new truck — not even a truck that they needed for themselves, but a truck to give away. And yet, this was a stupid move by the lender?! Right. It’s the big bad predatory lender’s fault for not telling poor Mr. Pemberton that he was a big fat idiot.

And by coincidence, I’m sure, Mr. Pemberton and Ms. Reboyras’ lawyer seeks out these kinds of cases and encourages people to not pay their mortgages. This way, you get to live in your house — for free!

Both generations of Pembertons have hired a local lawyer, Mark P. Stopa. He sends out letters — 1,700 in a recent week — to Floridians who have had a foreclosure suit filed against them by a lender.

Even if you have “no defenses,” the form letter says, “you may be able to keep living in your home for weeks, months or even years without paying your mortgage.”

About 10 new clients a week sign up, according to Mr. Stopa, who says he now has 350 clients in foreclosure, each of whom pays $1,500 a year for a maximum of six hours of attorney time. “I just do as much as needs to be done to force the bank to prove its case,” Mr. Stopa said.

It’s sickening, really. There are people out there milking the system for all its worth, taking no responsibility for their bad decisions, and then blaming the lenders when they end up in trouble. It’s usually the bad decisions of the borrowers that put them into foreclosure to begin with, and then they just want to sit back and do nothing, because somehow, everyone is apparently entitled to live in their home without paying the mortgage on it now. There are always alternatives, ways to avoid foreclosure. It isn’t like selling the home isn’t an option, but no one wants to do that. They can’t renegotiate their loan either, because the lenders are big bad predatory crooks out to get them. Apparently, the right thing to do is to squat in a house you don’t even fully own yet without paying what you legally owe.

In reality, this is theft. It’s a crime, and the bums should be thrown out on the street like they deserve. I have no sympathy for someone who pays nothing on their mortgage and willingly goes into foreclosure so that they can go out to eat, go on airboat rides, and gamble at the Hard Rock Casino.

Part of this is thanks to Democrats and Obama in particular. The endless demonizing of Wall Street and banks and big business has given people like these bums a ready-made excuse to stop paying their mortgages, yet still expect to live in their house. These people said so themselves. The banks are crooks. Lenders are greedy. They’re getting what’s coming to them, right? No one forced these people to take these loans, no one made them refinance, but it’s always someone else’s fault.

I understand that people sometimes fall on hard times. Honest people don’t use that as an excuse to abandon all responsibility and ignore their own bad decision-making. What is happening here is theft and the lowlifes should be thrown out on the street where they belong.

Hey, if they live on the street, they can still use their money on what really matters, like steak at Outback and gambling at a casino.

Follow Cassy on Twitter and read more of her work at CassyFiano.com and Hard Corps Wife.

This post was promoted from GreenRoom to HotAir.com.
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Comments

The key to happiness is to take out a 30 year mortgage for a less expensive home than you qualify for and then pay the mortgage off in 5-10 years and finally laugh at all the idiots underwater on their mortgages.

bopbottle on June 1, 2010 at 7:42 PM

Deadbeats

NeoKong on June 1, 2010 at 7:42 PM

Bastards, these people helped jack up the prices and now responsible people are still paying the consequences.

rob verdi on June 1, 2010 at 7:42 PM

Theft. It’s the new second job.

ROCnPhilly on June 1, 2010 at 7:45 PM

Sorta describes some of my neighbors.

Isn’t there some sort of reference somewhere in some regulation anywhere about burying such people alive?

Lockstein13 on June 1, 2010 at 7:47 PM

Do these idiots think this can sustain itself? Imagine if everyone decided to stop paying their mortgage. The entire economy would crater. If people don’t start suffering some consequences for their irresponsible(or in this case, illegal) behavior, we’re gonna be only a few steps short of anarchy.

Doughboy on June 1, 2010 at 7:49 PM

That is the problem with the lefts whole ideology, they want to end the idea of any personal responsibility. Come to Nanny Government for your needs and keep voting us into power. Disgusting an article like this can be written and these people are not being scorned!

bluemarlin on June 1, 2010 at 7:51 PM

I work in the mortgage industry for a major bank. I talk to people all time like these folks. My favorite person is the one who wants the bank to eat portions of their balance without having to adjust their lifestyle. Brand new cars, clothes, keep the cable, cell plans etc. Whenever I broach this topic they go right off the deep end and start rambling how it’s the banks fault yada yada. We got bailout money so we should bail them out etc. It’s gets really hard not to laugh at them Hey I’m an evil mortgage banker…it’s what I do. /s when I recap what they want. “Just so I understand, you want the bank to lower balance & payment because you brought a new truck, haven’t cancelled your cable or cell plan and you’re having a tough time making your house payment now?”

Now granted some people need help. No problem, let’s give them a helping hand…not a piggy back ride.

VikingGoneWild on June 1, 2010 at 7:52 PM

Man, I totally didn’t think of this. Stupid ol’ me.

/

Bob's Kid on June 1, 2010 at 7:53 PM

Thanks Cassy. This needed to be said. The abrogation of responsibility is one of the most dangerous results of 30 years of public indoctrination in schools and the media.

njrob on June 1, 2010 at 7:54 PM

It’s responsible people who end up paying for lazy, stupid, greedy deadbeats like these jerks.

Just like with illegal “immigrants,” we’ve become a nation where people who obey the law and play by the rules are treated like suckers and punished for their integrity, while people who lie, cheat, and take advantage of everybody else are cast as pitiful “victims” of an unust, unfair system.

This won’t end well.

AZCoyote on June 1, 2010 at 7:54 PM

These idiots aren’t stealing from the bank they are stealing from the bank’s depositors.

I work, pay my mortgage but there’s no casinos or steakhouses for me and mine.

Selfish @$$#013$.

Mr Snuggle Bunny on June 1, 2010 at 7:54 PM

I read this story earlier. It almost seems like parody. Another story from the NY Times is asking “who is resposible for student loans”? What the hell is this country coming to? A nation of deadbeats.

pageram on June 1, 2010 at 7:55 PM

Do these idiots think this can sustain itself?…

Doughboy on June 1, 2010 at 7:49 PM

Welcome to o-bow-ma land. What happened to my country? And when will this nightmare end? GOD I fear for my grandchildren.

lukespapa on June 1, 2010 at 7:56 PM

rob verdi on June 1, 2010 at 7:42 PM

YUP

ladyingray on June 1, 2010 at 7:58 PM

Living in foreclosure without paying anything …

… and being proud about it and bragging to your worthless, lay-about friends about it.

Rod on June 1, 2010 at 8:01 PM

VikingGoneWild on June 1, 2010 at 7:52 PM

I used to work in the home lending business. Saw many ups and downs. I never thought I would see so many people stoop so low when these modifications began. People think the banks are evil? Wait til they see what the government does to them when Obamacare goes into high gear.

john1schn on June 1, 2010 at 8:02 PM

When all this collapses, it’s going to be an interesting show.

joe_doufu on June 1, 2010 at 8:02 PM

I’m going to give another scenario, which I’ve already done here in the past but in this case the lenders brought this on themselves.
It is wrong terribly wrong but the big banks are reaping what they have sewn.
First of all I’m not even going down the road of more house than people could afford. But I will submit that I do not think the most scrupulous among us were mortgaging more than they could afford.
But this is the tale of two neighbors. One get transferred to another state in 2008. Sells the house 3 times each time the bank entertains the short sale in words only. The buyer walks due to length of process, the second buyer walks, the third buyer doesn’t walk but the bank “closes the file” and tells seller to find a new buyer starting the whole 6 month process all over again. 2 years have passed. Neighbor number two gets laid off. Decides just to quit paying mortgage and start submitting short sales. Rent free living.

ORconservative on June 1, 2010 at 8:02 PM

Has it ever crossed your mind why the banks are dragging their feet on actually foreclosing and throwing people out?

Three words: mark to market.

But banks playing games and cooking their books doesn’t sound good in a rant, so let’s blame Democrats instead!

John9400 on June 1, 2010 at 8:04 PM

The problem is that the system is so corrupted that even people who would otherwise be responsible start realizing that it makes more sense to take advantage of the system than to pay. If you are in financial trouble why cut back to pay the mortgage if the bank does not do anything? I don’t like the abolition of personal responsibility, but the system in place has encouraged it. And the current administration is continuing this warped thinking at a rapid pace.

BakerAllie on June 1, 2010 at 8:04 PM

I think there is going to be another consequence. At some point, credit scores and foreclosure is going to be meaningless.
This is a mess or epic proportions. Bad behavior continues to be rewarded. Not just a little.

ORconservative on June 1, 2010 at 8:05 PM

Curse these people and our government for making people who pay their mortgages, make responsible decisions, and honor their word the suckers. Sickening… just sickening.

King of the Britons on June 1, 2010 at 8:06 PM

When I was about 1 year old, my parents bought a building in the small town they were living in.

It was a bad decision and they ended up losing the building. To pay the rest of their debts, they had to sell the family house as well.

For the next 6 years of my life, I lived in either a 4 resident townhome or a rented house. During this time, my parents saved up their money until (with some help from my grandma) they were able to make a down payment on a new house.

That’s how it works. You can take risks, but, if they don’t pay off, you have to downsize and cut back until you recover.

Anyone that is putting anything but basic requirements for life ahead of their mortgage should be thrown out of their homes without a second thought.

I still think the banks have a right to throw out people that have cut back on all but the basic essentials and still can’t afford their mortgage payment; however, I would be much more inclined to work with these people to find a solution that keeps them in their homes.

JadeNYU on June 1, 2010 at 8:06 PM

Do these idiots think this can sustain itself? Imagine if everyone decided to stop paying their mortgage. The entire economy would crater. If people don’t start suffering some consequences for their irresponsible(or in this case, illegal) behavior, we’re gonna be only a few steps short of anarchy.

Doughboy on June 1, 2010 at 7:49 PM

That’s funny. Corporations walk away from loans all the time.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLYZhnfoXOSk&pos=5

John9400 on June 1, 2010 at 8:06 PM

I am so sick of the “it is everyone else’s fault” mentality and it just keeps getting worse. Attorney’s like the one encouraging people to do stuff like this needs to be investigated and disbarred!

truetexan on June 1, 2010 at 8:07 PM

Free market bailout idea: fast-track citizenship if you buy a foreclosed house, like the one mentioned. It would have to be passed over O’s veto so that he would not get any credit for it.

American bums kicked out.

Immigrant investors move in.

Banks are solvent.

Recession is over.

AshleyTKing on June 1, 2010 at 8:08 PM

Time to bring back debtor’s prison.

ray on June 1, 2010 at 8:09 PM

It’s “not everyone else’s fault”. These people are making a decision but the current events are allowing rent free living almost without consequences.
It is going to be a very very long time before we have a responsible society again.

ORconservative on June 1, 2010 at 8:10 PM

Time to bring back debtor’s prison.

ray on June 1, 2010 at 8:09 PM

For corporations as well as individuals? Or are corporations allowed more rights than individuals?

John9400 on June 1, 2010 at 8:11 PM

That’s funny. Corporations walk away from loans all the time.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLYZhnfoXOSk&pos=5

John9400 on June 1, 2010 at 8:06 PM

Sure, some major corps have played games but the majority of corporations are closely-held small businesses whose principles co-sign for their loans and obligations – co-signers that lose everything when the corp goes bust.

Personal experience.

Rod on June 1, 2010 at 8:18 PM

For corporations as well as individuals? Or are corporations allowed more rights than individuals?

John9400 on June 1, 2010 at 8:11 PM

How do you arrive at that question? Sounds angry.

ray on June 1, 2010 at 8:19 PM

Hold the lenders accountable too. Someone gave them the money…..

JeffinOrlando on June 1, 2010 at 8:21 PM

So riddle me this….why am I waiting 3 months for Bank of America to sell me a short sale that’s sitting empty when these criminals aren’t paying a dime? Oh right…I can actually afford it.

lionofzion on June 1, 2010 at 8:22 PM

“It’s sickening, really. There are people out there milking the system for all its worth, taking no responsibility for their bad decisions, and then blaming the lenders when they end up in trouble.”

It’s not like any politician forced the banks to make the loans in the first place to encourage this behavior….

… There is nothing like the ‘unintended consequences’ of social engineering.
Oh, wait!

Seven Percent Solution on June 1, 2010 at 8:24 PM

Ah, ain’t life in Obamaland grand?!

Ordinary1 on June 1, 2010 at 8:24 PM

great article Cassy…

Kaptain Amerika on June 1, 2010 at 8:25 PM

It’s not like any politician forced the banks to make the loans in the first place to encourage this behavior….

… There is nothing like the ‘unintended consequences’ of social engineering.
Oh, wait!

Seven Percent Solution on June 1, 2010 at 8:24 PM

I’m sorry, what type of social engineering went on to force banks to make crazy loans to middle class whites?

John9400 on June 1, 2010 at 8:30 PM

Part of this is thanks to Democrats and Obama in particular. The endless demonizing of Wall Street and banks and big business has given people like these bums a ready-made excuse to stop paying their mortgages, yet still expect to live in their house.

Yes. And we are to hate BP and health insurance companies and drug companies and who knows who else. Then public policy can be built upon that hate.

Paul-Cincy on June 1, 2010 at 8:31 PM

That’s funny. Corporations walk away from loans all the time.

Not just the loans, the buildings.

These people are walking away from their loans, just not the houses.

Planet Moron on June 1, 2010 at 8:34 PM

Foreclosure has allowed them to stabilize the family business. Go to Outback occasionally for a steak. Take their gas-guzzling airboat out for the weekend. Visit the Hard Rock Casino.

This is a joke. Untrue. No way. There are not people like this in America.

Umm, I think.

On second thought, we’re lost.

BierManVA on June 1, 2010 at 8:39 PM

So, eventually, the banks are going to start selling these houses out from under them. And the new owner can show up and say GTFO my house. No??? Then the police can show up and say GTFO this guy’s house.

BigWyo on June 1, 2010 at 8:41 PM

Lighten up. It’s called due process.

The law will permit you to live in the house for a year or more while the foreclosure grinds through the courts, but you would have people turn over the keys and move out as soon as they missed their first payment to demonstrate what personal responsibility they have. NONSENSE. I’d squat too.

There is a difference between owning and renting. Sure with high balances and long term mortgages, the “ownership” is really a legal fiction, but it is a legal fiction with a distinction. These people OWN those houses. If the bank wants to take the house away from its OWNER, the Bank needs to go through due process. If that takes a year — good. There are many cases where the bank was actually in the wrong and the owner really does need discovery and a day in court to prove their case. Can you decide the real cases from the freeloaders at a glance? I can’t. Should those with legitimate cases be deprived of due process just to satisfy your sense of personal responsibility? The fact that some freeloaders take advantage of our system of justice is just the price that the Banks should work into the cost of doing business.

Ot course, since Freddie and Fannie and ultimately you and me will eventually pick up the tab, who cares. Its free money. Right?

tommylotto on June 1, 2010 at 8:44 PM

Honk if I’m paying your mortgage.

Philly on June 1, 2010 at 8:44 PM

Irresponsible aHoles who continues to live off others without shame.

bayview on June 1, 2010 at 8:44 PM

Have you seen the lefties calling these dirtbags “heroes”? I do not think that word means what they think it means.

Frankly, crap like this makes me wonder why I bother to stay within my montly budget. New cars, boats, living phat: these things could all be mine if I were a greedy parasite living sucking off of humanity’s bottom. Then I remember that I signed a freaking contract for what I was willing to pay and send in my next check.

Physics Geek on June 1, 2010 at 8:56 PM

The key to happiness is to take out a 30 year mortgage for a less expensive home than you qualify for and then pay the mortgage off in 5-10 years and finally laugh at all the idiots underwater on their mortgages.

bopbottle on June 1, 2010 at 7:42 PM

Those of us who did that have had the tables turned on us and now we are being laughed at and forced to pay for the people who weren’t responsible.

free on June 1, 2010 at 8:57 PM

Alex Pemberton and Susan Reboyras

These people (and their ilk) need an a$$-kicking and to be put in jail. They are stealing from *me* and *you*.

Midas on June 1, 2010 at 8:58 PM

lionofzion on June 1, 2010 at 8:22 PM

If I were you I’d find another house. BofA has no intention of approving the short sale.

ORconservative on June 1, 2010 at 9:00 PM

That’s funny. Corporations walk away from loans all the time.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLYZhnfoXOSk&pos=5

John9400 on June 1, 2010 at 8:06 PM

Call us when these scum squatters start negotiating and ‘orderly transfer’ (as described in your lame attempt at moral equivalency) of their house back to the bank, and get the hell out of it instead of squatting there for years.

Midas on June 1, 2010 at 9:06 PM

Those people will have no problem, now that they have ‘extra income’ going back to the bank and asking for a new car loan. The same bank they stiffed on the mortgage.

GarandFan on June 1, 2010 at 9:08 PM

This is called Moral Hazard in economics, which socialism promotes to create the dependent class. And above them float the cognitive elite, better, wiser, and all-knowing in their lust for power.

Dhuka on June 1, 2010 at 9:11 PM

While I’m sure there are some truly unfortunate cases out there, this sort of stuff simply turns my stomach. Even if my opinion is colored with a hint of jealousy or resentment (I mean, some of us are actually trying, while people like this…), it never ceases to amaze me how such an entitlement mentality can override one’s moral compass.

Heresy of Cain on June 1, 2010 at 9:11 PM

The most culpable for this mess are the securitizers, ratings agencies and regulators. The least culpable are the borrowers and originators.

The former are responsible for the control fraud that allowed for the ridiculous products that got millions of Americans in trouble. There is no fighting control fraud on the level of the borrower or originator. At their level, you can only go with the flow.

Had regulators regulated and ratings agencies did their due diligence and rated accordingly, the mortgage meltdown would have never happened. It couldn’t have happened had they done their jobs.

voiceofreason on June 1, 2010 at 9:16 PM

It’s not the products that got people in trouble. It was a combination of factors: 1. the banks being too eager to lend and willing to lend on “stated” income and “stated” bank funds; 2. the government, who had it’s hand in everything FNMA and FMHLC; 3. investors, who went for the quick buck, instead of a long, slow increase in revenue; and finally, 4. the bank customers, who refinanced a lavish lifestyle and used their home like it was a free money machine.

Products weren’t crazy; people were. We got into a recession, and real estate was ridiculously over valued.

john1schn on June 1, 2010 at 9:52 PM

I’m sorry, what type of social engineering went on to force banks to make crazy loans to middle class whites?

John9400 on June 1, 2010 at 8:30 PM

The Community Reinvestment Act didn’t only target minorities…

… it targeted people who would vote Democrat in return.

Seven Percent Solution on June 1, 2010 at 9:53 PM

This one really deserved promotion. Thanks Cassy!

livefreerdie on June 1, 2010 at 9:55 PM

Ya’ know, I think there’s a whole lot of blame to be strewn around, but it really comes back to the fact that Barney Frank and Co. made it so lucrative for the mortgage companies to make loans by way of Fannie and Freddie agreeing to purchase the loans up front (and then sell the servicing back to the lenders…this is the little tidbit that is little reported).

You know all…let me put that in perspective ALLL, ALLLLLLLL of the rules regarding mortgages are made by Freddie and Fannie. Therefore, if banks lend without following those rules, they have a mortgage that is unsaleable on the secondary market, therefore, they will not be able to find an investor who is willing to fund the loan.

Giant racket!

Now, to add insult to injury, the condo market nationwide has been eviscerated. Fannie and Freddie have basically made it impossible to get a loan on a condo (mostly cuz’ of what happened to the condo market in resort areas), so have therefore further driven the market for condos even further into the dumpster.
Your government at work my friends!
And just wait…the commercial real estate market has only begun to crumble.

Trust me, I take no pride in these pronouncements. This is my livelihood, and I effeng hate it!

Chewy the Lab on June 1, 2010 at 10:06 PM

JeffinOrlando on June 1, 2010 at 8:21 PM

Obama and ACORN already held the bank responsible to make the loan, or they were being raaaaaaaaacists

UNREPENTANT CONSERVATIVE CAPITOLIST on June 1, 2010 at 10:10 PM

I just became ‘unemployed’ again today. I’m at least $100,000 under water, thanks to Obama and the ‘rats.
I am not losing my house. Somehow, I manage to scrape up the mortgage every month.
I actually had a contractor’s superintendent call me an idiot for paying my bills.

Lanceman on June 1, 2010 at 10:12 PM

Call us when these scum squatters start negotiating and ‘orderly transfer’ (as described in your lame attempt at moral equivalency) of their house back to the bank, and get the hell out of it instead of squatting there for years.

Midas on June 1, 2010 at 9:06 PM

Google “shadow inventory”. You seem to believe the banks want these homes back on their books ASAP.

The banks as so desperate to not have to mark down their loans that some have suggested programs to pay people who aren’t paying their mortgage to stay so the houses stay maintained.

John9400 on June 1, 2010 at 10:14 PM

Exactly. Very well written, Cassy.

Tanya on June 1, 2010 at 10:37 PM

The stupid-ass, Obama administration helped these strategic foreclosures with it’s extension of the foreclosure process. Before Obama, the time it took to get Mr & Mrs Mooch out of their home in California was 6 months and 21 days. Our pretend President added three months and now it takes a MINIMUM of 9 months and 21 days from the first unpaid mortgage check.

The Mooch families have also learned the technique called CASH FOR KEYS. After living mortgage, tax, insurance and perhaps HOA free for 1-2 years, the Mooches now know to ask the new owner of their foreclosed property, whether the bank or a third-party, foreclosure-sale buyer, cash for turning over the keys. The average amount in SoCal is 3-5 thousand dollars. That’s right! Another 3-5K for leaving the house without trashing it, taking the fixtures, throwing concrete down the toilet, etc.

This whole Obama created universe is beyond bizarro.

PS. I actually read on one foreclosure site a post by an irate Mooch who was uber pissed because the bank was “late” in the CASH FOR KEYS payment. The post asked whether Mr. Mooch had “legal recourse” to go after the bank. Now that’s gall.

PC14 on June 1, 2010 at 10:49 PM

I presume that most of these folks who are not paying their mortgages have escrow accounts attached to the mortgage, for payment of home owner’s insurance and property taxes. If they are not making their mortgage payments, they are not building their escrow for taxes and insurance.

How many of these homes are no longer insured? Those folks who have made no payments for 18 months, surely their insurance must have lapsed by now. Are the lenders letting that happen; an uninsured real investment? Or are the lenders providing the insurance, too, in addition to free accommodation for these folks?

And where are the States and Counties in tax seizures? Aren’t taxation authorities all over the country having trouble with declining revenues? Surely there are missed tax payments in here, but the properties are not being seized and resold for taxes. It would seem that the tax authorities are in collusion on this, too.

Those of us playing by the rules – we really are a bunch of chumps, aren’t we?

ss396 on June 1, 2010 at 11:20 PM

The parents in this particular example should have their house repossed and sold, then the remainder of their debt should be worked off in a chain gang on a bread and water diet. Other possesions and retirement funds should also be siezed and sold off including the dogs and racoon. If after a week on the chain gang they can show a plan where they can pay back their debt faster, then their sentence could be shortened and modified by the appropriate amount. But, they should remain on probation and subject to reentering the chain gang until their debt is paid in full or 30 years pass, whichever comes first.

AnotherOpinion on June 1, 2010 at 11:20 PM

Not once was it mentioned in the NYTs article that the banks will get their money regardless. All those loans were guaranteed by Fannie Mae and Freddie Mac.

Guess who will foot the bill, taxpayers.

Yeah stick it to the man your neighbors!

The NYTs is such a #&$& newspaper.

jhffmn on June 1, 2010 at 11:52 PM

I couldn’t agree more that walking away from your signed contract (or worse, STAYING in the house without paying) is theft, but allow me to briefly go counter-flow on my credit union, Navy Federal:

I was an active duty Naval Aviator ordered to move into CA Nov 05, the very peak of the market, and ordered out in 08, near the bottom. We put down 20%, obviously lost it all, and chose to rent out the home at a small monthly loss thinking the market would turn around and we might recover some of our 20%.

Well, two years later, the house was severely underwater and my tenants were moving on. I contacted NFCU, my bank of 25 years, to discuss selling the home. I had saved additional cash to cover a potential sale, but I would ultimately come up short about $10-15k even after selling my paid off car and biking to work. I proposed simply putting the remainder on my signature line of credit with them and continue to pay it off over the next year. They said that was fine, but I would still take the credit hit on a short sale.

To recap:
I would lose $150,000.
I would pay the loan off in full, although the last 3 or 4% would be without the home as collateral.
They would make all their contractual money and lose nothing.
I already had the credit line with them.
I had never missed a mortgage, car or any payment with them in 25 years.
I would take a credit hit for a short sale.

It was that last piece that really ticked me off. I worked in vain with those jack-asses to report it as paid as agreed and not a short sale, but to no avail.

I came away from that experience completely motivated to screw over that bank as hard as I could. I asked them if I was going to take a credit hit anyway, why wouldn’t I simply rent the home out to new tenants, stop paying the mortgage and collect a HUGE net increase in cash flow for as long as it took them to force out my tenants. I could afford a lot of legal bills with that increased cash flow.

Fortunately, it looks like it’ll work out after a pleasant success in my new line of work, but I ultimately decided to take my business elsewhere. The banking at the most successful and productive time of my life will be done at a bank that isn’t full of complete retards. (Can we still use that word? I’ve lost track.)

I know there is a big difference between credit hits on a short sale and a foreclosure, but I know a good screwing over when I see one. I made sure I would take every dime of the loss myself, but it wasn’t good enough. Screw those guys… They won’t ever see another dime of my money in any transaction, ever.

Jungle31 on June 2, 2010 at 12:33 AM

What counted was that you were making the effort. You work with your lender…

I got to this sentence + fragment and it was clear to me that the problem is we don’t have as many connections between the businesses and the consumers in our communities. People move a lot in America and loans are bought and sold many times. Do you want to screw the local banker who you may not know but he definitely knows you or do you screw big megabank that has no connection to your community? What if your loan is now owned by Fannie Mae?

There are so many bad loans out there that is makes sense to stay in a foreclosed home until they kick you out.

Bill C on June 2, 2010 at 12:50 AM

While this may be true of many cases, I unfortunately have personal experience that this is not true in every case. We had an FHA mortgage, fixed low rate, but my husband lost his job last year and was out of work for six months. He found a job but in the meantime unemployment did not cover everything…our total income was halved. Our lender was not open to any options other than full payments….we did not make enough money to qualify for any of the so-called mortgage programs out there. The only concession they made was to pay approximately 60% for three months then pony up all the money. Even to do a short sale or a deed in lieu they wanted a deposit from us.

It’s not been a choice to live this way…my hair is falling out and I grind my teeth, for starters. We now have finally gotten enough money to move to where my husband has been working so my kids are being uprooted from their lives, as well. Eight months after the job loss is the absolute earliest opportunity we have to get out of the house. We would have loved to have come to some kind of agreement with our lender for at least a period of time until we could get back on our feet, but I could not promise that we could pay them in full at the end of a so-called moratorium and that is the best they could offer. We don’t all enjoy living “for free” in our own homes.

kas on June 2, 2010 at 1:04 AM

A great example of how successful “amnesty” is.

Giving amnesty or rewards and benefits to criminals encourages more criminals.

The only way the banks can restore order is to evict all the deadbeats, otherwise they are encouraging more deadbeats and deadbeat lawyers.

If your neighbors get evicted when they stop paying their mortgage, or even trying to pay part of it, the lesson will be spread pretty fast.

fred5678 on June 2, 2010 at 2:08 AM

I suggest the lending firms take a note from the casinos. There should be a database of cheaters. If you are on this list, the next time you try to borrow, you get a big fat NO from the lender. They should be under no obligation to lend their money to people. That’s how this whole mess started, companies being coerced into lending to poor risks.

saukeye on June 2, 2010 at 2:42 AM

Holy Head Holes, this is just disgusting. Who knew that such idiots existed!?

Jewels on June 2, 2010 at 2:53 AM

Wow, sure glad I RENT my pad that way I don’t have buyers remorse or something, oh yeah if I don’t pay I get Tossed Out.
The new Rules= do right,get screwed,
Do wrong,get over it!
Bob

Bobnormal on June 2, 2010 at 7:10 AM

It literally is the the culture of welfare recipient.

When you ask yourself, what kind of trash votes for corrupt trash, these two are the poster children. These two see society as nothing more than something to loot.

The worst thing about it. They obvious feel no shame at displaying their mugs for the entire country to see. They feel no shame at being total leeches of society. Looters.

MNHawk on June 2, 2010 at 7:20 AM

Welfare state mentality….

albill on June 2, 2010 at 8:05 AM

Honk if I’m paying your mortgage.

Philly on June 1, 2010 at 8:44 PM

Honk. Or at least TCF is trying. If you’re like me, and don’t always check your statements monthly, you’re in for a surprise if you had formerly free checking.

ATM fees from $2 to $5…to support the trash in this article.

“Free” checking from, well, free to $9.95 per month…to support this trash.

Yes, the banks are now going after the honest, to support the welfare recipients. TCF being particularly sleazy about it.

MNHawk on June 2, 2010 at 8:08 AM

I wish I owned their bank. I’d kick them out and then bulldoze the house.

John Deaux on June 2, 2010 at 8:16 AM

If they are not paying their mortgage, they also are not paying Home Owner’s Insurance, Flood Insurance, Property Taxes, Health District Taxes, County Taxes, Community College taxes, etc. So they are even greater mooches and stealing not only from the banks but from their own community. If they have kids, take em out of school. If their house catches fire, don’t send the Fire Department. If someone calls 911, don’t send police. etc.

James on June 2, 2010 at 8:24 AM

Chewy the Lab on June 1, 2010 at 10:06 PM

Thanks Chewy for nailing it. Barney Frank and Dodd should be in jail for this racket. Instead, Dodd is writing the new regulations for the banks. Insanity.

This is a timely piece- we just discussed the option with our financial planner. We can’t bring ourselves to do it, even though friends, neighbors, even family have already taken the route and are laughing at us for our shoe-string lifestyle. If we tried to get any of the help for our decreased income, they would tell us to stop paying for 60 days to get into the program. Why? It’s lame. We can make the payment, it’s just painful and unsustainable given medical and income changes- and the fact the Bush tax cuts will be expiring at the same time our mortgage resets.

The tax ramifications of a short sale would force us into bankruptcy. We’re just hangin’ tough, cutting back everywhere, and praying for business to pick up and the effin’ government to get out of our way. Stories of aholes like these REALLY frost me considering the sacrifices we’re making to stay current.

NTWR on June 2, 2010 at 2:16 PM

Theft?! Was the Boston Tea Party “theft”, too, then? Given that monetary manipulation by the Federal Reserve is unconstitutional (debased currency, inflation and quantitative easing a taking without compensation) not paying a mortgage to a bailout bank is a righteous, even patriotic, act.

epsilon on June 2, 2010 at 7:13 PM