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Atypical Liberal

(5,412 posts)

6. I think these are the first chunks of an avalanche.

Reply to Roland99 (Original post)

Tue Feb 7, 2012, 01:14 PM

Feb 2012

This housing market is going to have to stabilize. People like myself are sitting on homes that are worth $90K less than I owe on them. I can pay on it for years and not be above water.

More and more people are just going to walk and leave the bank holding the property unless the bank lets the current owners sell and leave cleanly.

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Banks Paying Cash to Homeowners to Avoid Foreclosures [View all] Roland99 Feb 2012 OP

And this helps the homeowner HOW? aquart Feb 2012 #1

Well, better than walking away from a bad situation with nothing. Hoyt Feb 2012 #2

35K would not help you? nt Snake Alchemist Feb 2012 #4

Not if the difference between owed and sale price is over $35,000, no. aquart Feb 2012 #9

If the house is worth 100K, but you owe 200K and the bank is offering 35K Snake Alchemist Feb 2012 #15

It lets you walk away from a home without debt or bankruptcy. Atypical Liberal Feb 2012 #5

8 Million Americans have now been exposed to foreclosure.... lib2DaBone Feb 2012 #3

I think these are the first chunks of an avalanche. Atypical Liberal Feb 2012 #6

Forecloses costs run into the THOUSANDS of Dollars happyslug Feb 2012 #7

So the MBA banksters finally listened to a serf or 2 in their back office. Mopar151 Feb 2012 #17

Yes, because no matter how bad their decisions, they will ALWAYS make bundles of money. closeupready Feb 2012 #20

Plus, if the bank re-sells the house, dixiegrrrrl Feb 2012 #21

I'm guessing the money from the bank goes to pay income taxes on the short sale Fiendish Thingy Feb 2012 #8

Shouldn't really help Sgent Feb 2012 #12

Not so. PassingFair Feb 2012 #13

Not necessarily true, the forgiven debt is not always taxable income. intheozone Feb 2012 #14

That was in days past. Not so much anymore. nt Snake Alchemist Feb 2012 #16

I got $2000, so I wouldn't trash the place on the way out. tridim Feb 2012 #10

AH! They're forgiving the mortgage! aquart Feb 2012 #11

This could help some people I guess Obama3_16 Feb 2012 #18

This is simply a work around on the securities fraud committed by Wall Street banks. ms.smiler Feb 2012 #19

Ha!!!! I KNEW there had to be a pickle in there somewhere. dixiegrrrrl Feb 2012 #22