'Underwater' loans: Arizona is No. 2 (Phoenix, Tucson: foreclosed, insurance, mortgage) - (AZ) - City-Data Forum

cheesecurd · 07-26-2011, 08:47 AM

WASHINGTON - "Just under half of all Arizona mortgages were "underwater" in spring of this year, the second-highest percentage in the nation!" 'Underwater' loans: Arizona is No. 2 Sounds like GOOD NEWS for us cash buyers in Tucson!

robabeatle · 07-26-2011, 01:25 PM

Good for you. I walked on my $156K mortgage. The bank sold it for $51K to a flipper. He offered to sell it to me for $71K. I moved out of state.

cheesecurd · 07-26-2011, 01:30 PM

Yes I agree its a ruff time for many in this economy! I think it will be many years before there is substantial improvement. I truly hope the banking policies of the past will be no more!. Some of the past lending policies banks were doing were VERRY unethical to say the least!

Bummer · 07-26-2011, 02:02 PM

Quote:

Originally Posted by cheesecurd

WASHINGTON - "Just under half of all Arizona mortgages were "underwater" in spring of this year, the second-highest percentage in the nation!" Sounds like GOOD NEWS for us cash buyers in Tucson!

Unfortunately, Cheesecurd . . . most, if not all, of these casual statistics fail to address the percentage of 100% loans (nothing invested so nothing to lose) plus those loans that were highly inflated by refinancing and/or seconds. For example, the two recently foreclosed homes in my neighborhood had outstanding loans far greater than the amount originally paid for the home.

Shameful example of "first personal singular" greed and irresponsibility.

cheesecurd · 07-26-2011, 02:26 PM

I guess in all reality these home owners should have known what they were doing when the bought their homes. I know some that even though they could afford to keep their under water mortgage payments up as they promised, they instead chose to just stop paying and dump the home. I don't feel this is the right and moral thing to do!.JMO

Boompa · 07-26-2011, 02:39 PM

Quote:

Originally Posted by cheesecurd

WASHINGTON - "Just under half of all Arizona mortgages were "underwater" in spring of this year, the second-highest percentage in the nation!" 'Underwater' loans: Arizona is No. 2 Sounds like GOOD NEWS for us cash buyers in Tucson!

You're kidding? I've been walking around with cash in my pocket in the east valley of Phoenix and can't even get a straight answer if houses are on the market. It's like a crap shoot with no numbers on the dice. If these are speculators we can expect another crash that will make the last one seem small time. I've just about given up trying to buy with cash, they would rather have a 1% or 3% down loan than settle for cash

cheesecurd · 07-26-2011, 03:00 PM

Quote:

Originally Posted by Boompa

You're kidding? I've been walking around with cash in my pocket in the east valley of Phoenix and can't even get a straight answer if houses are on the market. It's like a crap shoot with no numbers on the dice. If these are speculators we can expect another crash that will make the last one seem small time. I've just about given up trying to buy with cash, they would rather have a 1% or 3% down loan than settle for cash

I don't understand! what difference should it be if its cash or a loan as long as someone gets paid? I guess if you found a home you want to buy you could just do what they want give em their 1%-3% down. Then when the deal is done and the payment for the first month comes in the mail just pay the whole loan off 100%.

Bummer · 07-26-2011, 03:28 PM

Quote:

Originally Posted by cheesecurd

I guess in all reality these home owners should have known what they were doing when the bought their homes. I know some that even though they could afford to keep their under water mortgage payments up as they promised, they instead chose to just stop paying and dump the home. I don't feel this is the right and moral thing to do!.JMO

I could not agree more, Cheesecurd.

Those greedy scumbags who opt to walk away rather than accepting responsibility will pay in the long haul.

THANK GOODNESS FOR KARMA.

robabeatle · 07-26-2011, 04:01 PM

how is it a moral dilemma? an agreement is made that a person can live in a house if payments are made and ownership can occur if enough payments are made. during this time, the bank still owns the house. if one chooses to stop paying, the bank gets the house back, usually making even more money if there is mortgage insurance.
these are business decisions. look at the banks if you want to ask about moral dilemmas. bailed out and not loaning money, after their questionable practices.
i walked and have no feelings about it at all. i could have made the payments, not comfortably mind you. it was the best business decision i ever made.

jksn75 · 07-26-2011, 04:16 PM

I guess it just doesn't seem right or sit well with folks if a person agrees upon a purchase price and buys a house and then because the market tanked, walks from the house. I don't see how it is the bank's fault that the housing market drops. If you agree to a price and can do the payments, why walk? The bank and/or mortgage insurance companies are the losers in the end. My house is now about $40k-$50k upside down. I can easily afford my payment and it was a price I agreed upon. I'm not going to screw my bank over just because it is now worth so much less. Not their fault. Besides, I don't want to destroy my great credit!