Money Matters
PhillyGal34
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Updated !!!! Walking from house
I'm curious and thought you ladies could help. Some of dh's distant family members have done something that to me is shocking (and insanely irresponsible). The husband was laid off and the wife was a stay at home. They were one payment ahead on their mortgage but decided they wanted to move south to live near the water. So they simply walked away from their house. They sold their big stuff and bought a much cheaper house in Florida in cash. They have since bought a new car and a time share and have taken several vacations and to to Disney frequently, added a pool to the house and bought all new furniture and appliances.
So here is my question. When will the house thing catch up to them? It's been over a year and what happens when it does? I say the bank will go after their new property and kill their credit but mil seems to think nothing will happen! I should also mention they walked because they had a second mortgage on the house for improvements and owed almost double the value of the house. They were ahead on payments so the bank wouldn't even work with them but they did have some major credit card debt.
So what happens??
Eta- I wanted to add that I know there are times that houses are so underwater that there's no option than this but I think the way they are spending money is irresponsible. Husband was a contract employee but is out of work again and wife is still at home.
So here is my question. When will the house thing catch up to them? It's been over a year and what happens when it does? I say the bank will go after their new property and kill their credit but mil seems to think nothing will happen! I should also mention they walked because they had a second mortgage on the house for improvements and owed almost double the value of the house. They were ahead on payments so the bank wouldn't even work with them but they did have some major credit card debt.
So what happens??
Eta- I wanted to add that I know there are times that houses are so underwater that there's no option than this but I think the way they are spending money is irresponsible. Husband was a contract employee but is out of work again and wife is still at home.
Our little hippo was as impatient as mom!
Hoping for a full 40 weeks!!
Re: Updated !!!! Walking from house
Yeah it's frustrating. I know that the banks were to blame for a lot of the housing crisis, but the irresponsible home owners (like these people) had a huge hand in it too.
This will damage their credit for years. Plus, what they are doing is actually stealing. They bought a house (from the bank) and have not yet paid for it. And, they didn't truly go into hardship and they didn't work with the bank to make a repayment plan (as far as we know). I will be surprised if this does not come back to get them, but banks are backed up with processing this type of crap, so it may be awhile.
Funny enough, the former owner of my house did this exact same thing. Between an SBA loan, second mortgage, home equity line, and I think a few other loans with the house as collateral...they owed about 3x what the house was worth when it was foreclosed on. They basically bought another house with cash, stopped paying all the loans, and I think even rented part of the house out to his brother for a nice year or so during the "foreclosure process" before the bank locked the doors.
Technically, a bank can absolutely sue and go after people who default on their mortgages for any shortfalls incurred after the house is resold. But, realistically, this is rarely done. Yes, their credit will be ruined for years
I definitely know I'm better off in my small house and old car haha but it still stinks when they rub it in. I have the feeling bankruptcy isn't too far off so they can just "start over" such an awesome example for their kids!
Thanks ladies! I guess only time will tell!!
TTC since 1/13 DX:PCOS 5/13 (long, anovulatory cycles)
Clomid 50mg 9/13 = BFP! EDD 6/7/14 M/C 5w6d Found 11/4/13
1/14 PCOS / Gluten Free Diet to hopefully regulate my system.
Chemical Pregnancy 03/14
Surprise BFP 6/14, Beta #1: 126 Beta #2: 340 Stick baby, stick! EDD 2/17/15
Riley Elaine born 2/16/15
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Chemical Pregnancy 9/15
Chemical Pregnancy 6/16
BFP 9/16 EDD 6/3/17
Beta #1: 145 Beta #2: 376 Beta #3: 2,225 Beta #4: 4,548
www.5yearstonever.blogspot.com
Long long ago, there used to be a special place for people like this. It was called Debtors' Prison...you didn't pay your debts, you went to jail. Personally, I think this is fine. Walking away from debts like that is stealing.
The banks lose the money, and, in turn to cover their financial losses, they have to charge higher fees to their other, rule-abiding customers. So next time you have a $50 overdraft fee instead of $30 you can thank your neighbor who ran out on the bank!
Long long ago, there used to be a special place for people like this. It was called Debtors' Prison...you didn't pay your debts, you went to jail. Personally, I think this is fine. Walking away from debts like that is stealing.
The banks lose the money, and, in turn to cover their financial losses, they have to charge higher fees to their other, rule-abiding customers. So next time you have a $50 overdraft fee instead of $30 you can thank your neighbor who ran out on the bank!
I whole heartedly agree! It's really unfortunate for people who do abide by the rules and have a good moral compass.So true. And knowing that I'm being a good example for my son helps too.
Thanks guys. Now we just wait for the bank to catch up and see what happens.
It seriously blows my mind.
People cover up a lot of things with big expensive material things and vacations. Eventually the trust comes out. Have the popcorn ready, and watch 'the show'
TTC since 1/13 DX:PCOS 5/13 (long, anovulatory cycles)
Clomid 50mg 9/13 = BFP! EDD 6/7/14 M/C 5w6d Found 11/4/13
1/14 PCOS / Gluten Free Diet to hopefully regulate my system.
Chemical Pregnancy 03/14
Surprise BFP 6/14, Beta #1: 126 Beta #2: 340 Stick baby, stick! EDD 2/17/15
Riley Elaine born 2/16/15
TTC 2.0 6/15
Chemical Pregnancy 9/15
Chemical Pregnancy 6/16
BFP 9/16 EDD 6/3/17
Beta #1: 145 Beta #2: 376 Beta #3: 2,225 Beta #4: 4,548
www.5yearstonever.blogspot.com