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Europe asks American Atlantis,with $1.2 TRILLION in underwater mortgages why don't you STOP paying?

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Democrats Ramshield Donating Member (90 posts) Send PM | Profile | Ignore Sun Jun-17-12 07:32 AM
Original message
Europe asks American Atlantis,with $1.2 TRILLION in underwater mortgages why don't you STOP paying?
Welcome to the lost continent of American Atlantis, the land of underwater mortgages, a country where waterfront property has a new meaning.


Daily Mail UK quote: "Housing market sinks deeper as ONE THIRD of homeowners are underwater on their mortgages and owe $1.2 TRILLION more than their homes are worth........Nearly one third of homeowners are underwater on their mortgages and owe an average of $75,000 more than their houses are worth, according to a startling new report by the real estate research firm Zillow." End of quote.

Daily Mail quote: For now, though, they keep making payments. Nine out of ten underwater homeowners are current on their mortgages." (End quote)


DON'T WE KNOW PAYING OFF NEGATIVE EQUITY IS PAYING FOR NOTHING! STOP PAYING!
There is no better way in the modern day American neo-feudalist state to ensure a compliant population than through debt slavery. Therefore it becomes important to ensure that people are in debt longer. Ergo Wall Street newest gift to America, the underwater mortgage, where you too can become the proud owner of waterfront property like it or not. With that most innovative gift from Wall Street, your 20 year mortgage may now well take you 30 years to pay off, assuming that they don't force you into foreclosure first.

As Wall Street's neo-feudalist gift that keeps on giving, they're also drowning your kids, living in the basement of your underwater mortgage house in student loan debt, whereas in every country in western continental Europe, tuition is so low that it's almost free. In fact American students are more likely to spend more on books than are their European continental counterparts on tuition. Of course the American plutocrat owned media isn't going to tell you that, so this diary just did. It's not just rich Europe, the University National in Mexico is completely free of charge.

The really great thing that plutocrats love about America's modern debt slavery is that they point to your signature and say 'they were stupid enough to sign it' while they laugh straight in your face. In fact they're laughing all the way to the bank that you bailed out.


(Cross posted by author from the Daily Kos).
Please click on the link below to read the full article.
http://www.dailykos.com/story/2012/06/17/1098427/-Europ...
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AndyTiedye Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jun-17-12 12:24 PM
Response to Original message
1. If They Stop Paying, They Lose Their Homes
and will have to pay (not tax deductable) rent somewhere else.

If they go into foreclosure, it wrecks their credit, and they'll never be able to get a loan again.
That could make it difficult to buy another home, or a car.
A lot of places won't rent to them because they check the applicant's credit.
Some employers run credit checks on job applicants too.
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Divine Discontent Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jun-17-12 02:05 PM
Response to Reply #1
2. I was thinking along that lines too. If you can afford it, you are quite possibly
better off keeping your home as long as you're not paying 3K+ a month and could live somewhere else for 1K, and think it's okay to file bankruptcy for yourself. But your points are valid. I understand what the OP is saying I think. The banksters are SOB's who have profited off the housing boom of the past decade and now people are suffering for it. Just a tough decision for those who are facing it. I have a family member who lost their home, it was a rough period under Der Fuhrer Shrub, but hopefully, a new home will be theirs soon.




Get it here now, or one of a million other designs! http://www.cafepress.com/barackobama12

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Democrats Ramshield Donating Member (90 posts) Send PM | Profile | Ignore Sun Jun-17-12 04:30 PM
Response to Reply #2
4. To Divine Discontent - It's about standing together united.
I am sorry to hear about your family member who lost their home. But please let's understand the reason they lost their home was because our fellow working class Americans refused to stand together. If everyone who had an underwater mortgage would stand together, they can't foreclose on everyone. The courts would be overwhelmed. The banks couldn't afford the litigation. There would be a market correction. Isn't it time that we had a serious discussion about standing to together instead of falling part individually in America?
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Divine Discontent Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jun-17-12 11:10 PM
Response to Reply #4
5. I agree, it's coming to that. What's tragic is that these GOPers, if they succeed, will be
crapped upon by a Romney Administration, and find out what financial hardship really is! For he will destroy the nation that is trying to recover from the B*sh disaster of 8 years of massive spending and deep tax cuts for the wealthy. Romney would seal the deal.

But, yeah, I get ya - if everyone stands together against the banksters, a new "understanding" would have to take place. Take for example, spending on goods. I try to by as little as possible as it is that isn't from America, and if everyone started doing this, and refused giving their money over to the multinational corporate entities, we'd see we have more power than we think!
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Democrats Ramshield Donating Member (90 posts) Send PM | Profile | Ignore Sun Jun-17-12 04:27 PM
Response to Reply #1
3. To AndyTiedye - The diary is about standing together
What the diary advocates for is a discussion starter wherein people join together en mass to stop paying these fraudulent mortgages charges. What you described is only possible if people do not join together. If everyone or at least most people stopped paying, theres no way that the banks could afford to take everyone to court. Also the courts would be overwhelmed if we stick together. If we dont stick together then what you described is possible. The problem is that not only will people not stick together they wont even have a serious public discussion about forming home owners unions to unite people who have underwater mortgages to force a market correction by denying the banks payments. If millions of people will stand together, we can change the way Wall Street does business. Thats what this diary was about, standing together instead of falling apart.
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-20-12 09:01 AM
Response to Reply #3
7. Isn't standing for us in matters like this what we pay government to do?
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dtexdem Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-19-12 03:10 PM
Response to Original message
6. Well, if one is living there and plans to continue to do so, one pays the mortgage.
At the very least it's rent -- and likely cheaper than renting the comparable space.

But when one can no longer pay, it's ... walk away.
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-20-12 09:12 AM
Response to Original message
8. Foreclosure, loss of credit as to a future mortgage and everything else and personal liability for
the deficit, including having an involuntary bankrupcy filed against you.

Once upon a time long ago in most states, the only remedy a mortgage lender had was to foreclose on the home (aka nonrecourse mortgage).

Then came the ability to ruin your credit for years and years.

Then came the ability to sue you for the difference between whatever the lender got from your home after foreclosure and the full amount of the mortgage, including late fees, interest on interest, etc. And if you can't pay, the judgment is good for 20 years.

So, good luck finding a landlord who will rent to you because you most definitely will not find another mortgage lender, except maybe a wealthy family member who loves you A LOT.

Also, you will owe extra taxes on forgiveness of indebtedness. Congress did provide temporary relief from the tax bit, but that expired and has not been renewed. And, supposedly, the mortgage relief Congress passed was designed to fail. Whether or not that is so, very few people who were underwater were able to get any benefit from that bill.

that's why people don't just walk away. I have a family member going through this.

He just had a mini-stroke, which I very much suspect was because of the stress his underwater mortgage, combined with this loser economy, has caused him.

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formercia Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-26-12 11:54 AM
Response to Original message
9. Wrong side of the Waterfront.
Sea levels are rising. News at 11.
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