Exciting New Service Helps You Walk Away From Your Mortgage!

YouWalkAway.com promises to teach you how to give up paying your mortgage and let the bank foreclose on your house.

You will immediately know the exact amount of days you have to live in your house payment free. We stay on top of your walk away plan and keep you up to date with weekly progress emails. We also will notify you if the lender is taking longer than expected subsequently giving you more time in your home payment free.

It’s like a spoof, except real!

For $995, they’ll give you half an hour of legal advice, and then file the necessary legal papers to get lenders to stop calling you. The site says it’s not a scam, that they’re not buying the house from you or anything like that. They will, however, enroll you in a “credit repair” service. Those kinds of companies are usually scams or have figured out some duplicitous way to trick the credit system.

Blogger Mish Shedlock called the company to ask what the deal was:

I spoke with John Maddux a “senior advocate” with You Walk Away (YWA) about the business. As one might expect it is booming. For $995 one receives a half hour of legal counsel where individual strategies are mapped out and all the laws pertaining to recourse vs. non-recourse loans as well as judicial procedures are explained to the customer. YWA also files the necessary legal papers to stop mortgage companies from calling and informs you immediately of how many days you will be able to stay in the house for free. Should the lender take longer to process the documents, YWA will keep you informed of any extra time.

Maddux informed me that YWA is currently operating in the state of California only, but Nevada and Florida will soon be coming online. Eventually they expect to be nationwide.

Not recommended. Troubled homeowners should refi, get a lower rate or sell, and walk away from “you walk away.”

You Walk Away [via Caveat Emptor via Behind The Mortgage]

Comments

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  1. From the site:

    “With our money back guarantee, you get it all for only $995.00. This can be made in three easy payments of $332.00″

    Unless..of course you walk away from paying them.

  2. BlondeGrlz says:

    This is just depressing. Both that there is a market for it, and that people would think it’s not some sort of scam. “But the site says it’s not a scam! And the interwebz never lie!”

  3. zero_o says:

    Terrible… Another tragic symptom of that “it’s not my fault” syndrome.

  4. arch05 says:

    that gives them an extra dollar

  5. ShortBus says:

    …or you could put that $995 towards your mortgage and live an extra month in your house, FOR FREE!

  6. laserjobs says:

    Mish Shedlock called You Walk Away for answers

    [globaleconomicanalysis.blogspot.com]

    I spoke with John Maddux a “senior advocate” with You Walk Away (YWA) about the business. As one might expect it is booming. For $995 one receives a half hour of legal counsel where individual strategies are mapped out and all the laws pertaining to recourse vs. non-recourse loans as well as judicial procedures are explained to the customer. YWA also files the necessary legal papers to stop mortgage companies from calling and informs you immediately of how many days you will be able to stay in the house for free. Should the lender take longer to process the documents, YWA will keep you informed of any extra time.

    Maddux informed me that YWA is currently operating in the state of California only, but Nevada and Florida will soon be coming online. Eventually they expect to be nationwide.

  7. bohemian says:

    You have to wonder at what point the percentage of people who have had a foreclosure impacts credit scores. If lots of people have lower credit scores due to foreclosures does that make say 650 the new 700?
    What does this do to the rental market? If more people are going with rentals to get out of their houses?
    What about all those vacant houses?

    This whole mess just seems like some odd circular argument. But the idea that we all need to go waste money on cheap plastic junk or the economy will fail seems a bit odd too.

  8. sickofthis says:

    I’m not defending You Walk Away, but suggesting that someone in foreclosure can just refi to a lower rate or sell the house is pretty uninformed. A lot of people in foreclosure have trashed credit (partly from the failure to pay their mortgage). They may be upside-down on the house. And we all know how well existing homes are selling these days.

    For many people, walking away from a mortgage, especially when they have next to no equity in the house, is going to be their only option. They certainly shouldn’t pay someone $1,000 to “help” them do that, though.

  9. shan6 says:

    I just had Mountain Dew come out my nose. I shouldn’t be shocked by this, but somehow I am.

  10. stevegoz says:

    This is the awesomest thing the legal profession has done since its last class act, the “You’re not gonna live forever; why stay married to HER?” ads started popping up a few years back….

  11. ethanrik says:

    You gotta love this link on their site….
    [www.youwalkaway.com]
    =) LOL!!

  12. cabalist says:

    “For many people, walking away from a mortgage, especially when they have next to no equity in the house, is going to be their only option.”

    Really? Their ONLY option?

    Even better than the option of keeping their word and upholding the contract and paying off the property that they made a deal to pay off?

    They bought something and now find out that it isn’t worth what they paid for it? I did that on a car one time (more than one, really), many, many dinners, some hotel rooms, well, hell, LOTS OF STUFF. However, it was still my choice to purchase this stuff. Disappointing as it is to buy something and then find out that it is not worth what you paid for it we have all done it. When my wife and I bought our house ($99,000 several years ago) I was scared shiftless that I was going to throw my money away on something that wasn’t worth what I paid for it. I used to stay up worrying that I would screw up in buying the house and we would be paying for it for years. I got books from the library, I attended NACA mortgage prep classes (a nonprofit aimed at getting lower income applicants into houses with standard mortgages; we used the info that they taught but did not actually go through them), I checked out books from the library, etc. This is due diligence. Whenever making a large purchase one should do it.

    “Walking away” (the first new buzzword of 2008) hurts the economy in general, the specific neighborhoods that the houses reside in, and everybody’s house values.

    Buck up, take it like a man, and recognize that you must live up to your responsibilities.

    That, and sufficient regulation of the housing market (banks and mortgage lenders especially), should help to ease this issue in the future.

    IMHO (and I have said this before): The subprime mess should be cleaned up by moving all loans to a fixed rate and moving the difference in interest rate to the back of the loan (adjusting the amortization of the loan and significantly extending its life in most if not all cases). This is a good compromise in that the banks and individuals will both be somewhat unhappy and the general public will be less impacted.

  13. jefino says:

    Okay, this service is just a bunch of bs. Ill tell you how to do it for FREE.

    To stop the calls, fax mortgage company a seize and desist letter, and list all numbers for them not to call. By law they have to obey or they can be sued.

    To figure out how much time you can stay in your house, call the mortgage company and ask for the foreclosure sale date, in states like new jersey, it can take as long as 230 days after foreclosure starts. AFTER the foreclosure sale, ask how long of a redemption period there is. AND after that, ask how long before eviction(depending on the new owner at the sale)

    There, just saved you $995.

  14. crescentia says:

    Since there are a lot of empty homes around right now shouldn’t there be a program perhaps allowing the homeless working poor to live in them?

    Anyway! I think a lot of people are brainwashed into thinking that they NEED to buy a home no matter what because they have to live the ‘American dream’. A lot of people didn’t know what they were getting into or were lied to by the banks that gave them those bad loans. Everybody should share the blame.

  15. qwickone says:

    @cabalist: I’m not sure I understand your suggestion. Are you accruing interest at a higher rate than you’re repaying it?

  16. Sam Glover says:

    @stevegoz: Hey now, don’t blame this shit on “the legal profession!” It’s not like we all got together one day and thought this up.

    We thought up other stuff that day, like how to bill twelve hours in an eight-hour day.

  17. Sam Glover says:

    FYI, $995/half hour is probably the highest hourly rate in the world.

  18. m4ximusprim3 says:

    Maybe I should go one further and maintain a database of empty houses awaiting sale. They people could pay me lots of money, and I could tell them where to squat and for how long.

    Seems foolproof to me.

  19. Jimbo64 says:

    I recommend that people should walk away from their homes if they get behind on the mortgage, or if it needs a new roof, or they don’t like the color.

    I would like home prices to keep dropping, so I can buy some cheap rental property!

  20. shadow735 says:

    They are probably talking about a deed in lue of foreclosure where you basically surrender the home by signing over the deed to the house to the mortgage company.
    BUT there are things you have to do in order to qualify for this. Once you do those things you can qualify.
    It basically saves foreclosure fees which can run up and above $25k

  21. cabalist says:

    QWICKONE: I would freeze the payment amounts at their current levels for all homes under a certain national $ amount (this may have to be done regionally or even by county [oh joy] and would be a policy point to concentrate on; this would also only apply to people/families with only one home), change the interest rate (ie I would let the ARMs ‘reset’ to the higher rate maybe minus a point), and extend the backend of the mortgage to account for the higher amount of money they will be repaying. This would effectively extend the life of the loan. How *exactly* to rework the amortization? That would be a good policy discussion to have with an accountant.

    I prefer this method to the one where all rates are frozen and then converted to a fixed-rate mortgage. I think that rewards what we, as a society, want to discourage.

  22. RandoX says:

    Forgetting everything else that’s wrong with this, I hate statements such as “up to 8 months or more”. “Up to” implies an upper limit of 8 months. The “or more” part is contradictory.

  23. laserjobs says:

    I actually think $1000 is a bargain for this kind of service. First, this is all they deal with so you don’t have a bumbling lawyer looking up laws and drawing up documents and charging you at least twice as much. Second, they file all the paperwork. Third, they monitor on the process.

    I think this service will save people in this situation a lot more than the $1000 it costs.

  24. HRHKingFriday says:

    @bohemian: That’s kind of what I was hoping to get out of the whole recession. Plus people are defaulting at record rates on credit cards and cars. I’ve gotten way more offers for credit cards than I ever have (and offers for pretty decent cards with good rates… not that I’d take them, but whatever). My credit rating isn’t great, but most of it is because I’m young and haven’t built up much of anything.

  25. RandoX says:

    Look on the website at the smiling happy people packing boxes while they lose their home.

  26. viqas says:

    I haven’t seen much of a drop in home prices, everything seems to stay inflated even though the value of the actual house has dropped and the actual amount of work that needs to restore the house into living condition is a good amount.

    Maybe it will get worse when I graduate and get my first real peoples job.

  27. cashmerewhore says:

    @Sam Glover:

    I’m just ashamed that somebody thought of it before me. I could’ve been billing myself out at $995/30 minutes.

    If I worked 30 minutes a day, that’s enough to quit my day job…at five days a week that’s $258K/yr. All for 650 hours worth of work.

    I am now insanely jealous.

  28. fearuncertaintydoubt says:

    @CABALIST: I agree with a lot of what you said, but “buck up and take it like a man” is injecting morality into what is fundamentally an economic situation. Morality is a funny thing — it causes people not to act in their own best interest. But if you want to talk about what it means to “be a man”, then first on your list is this: take care of your family.

    Working yourself to death over a house you don’t want is ludicrous. Seriously. The stress on you, your spouse, your kids, etc. is a very bad thing for you in the short term and long term. People get divorced because of financial stress. Are you asking me whether I would choose my house or my marriage? Because I would let the bank come and take it today if that was the case.

    Breaching a contract, especially one of the magnitude of a mortgage, is serious business. “Just walk away” suggests a cavalier attitude that I don’t think really is the case for the vast majority. There is a lot of agonizing, a lot of worry and stress when contemplating shipwrecking your credit and upending your life by choosing foreclosure. But when faced with the alternative, drowning in debt, imperiling your future for a long time, and enduring so much additional stress that it could kill you or someone you love, foreclosure is freedom.

    Many people made some very unwise choices. And no one is winning with the current wave of foreclosures. But the traditional economic penalties for foreclosure aren’t working to dissuade people, and that’s because the economic situation has changed. For many people, it’s become about survival — can’t sell, can’t refinance, can’t rent, nothing. Until you’ve lived in a situation that you see no way out until it completely destroys you, you don’t understand how desperate you would be for a solution.

    If you want to put the topic of foreclosure on the playing field of morality, fine. But it doesn’t begin and end with “a good person pays their debt no matter what”. Because a good person takes care of his family, too. A good person doesn’t condemn the people who depend on him to suffer for decades for a bad decision when a legally agreed-to penalty which will let him out of that obligation is available.

    If you were stuck, you’d do it too. You would be an irresponsible fool to let a mortgage completely destroy your financially if foreclosure was a sounder decision. Maybe how bad it gets before you would do it is more drastic than others, but to draw the line of morality at the point where you happen to stand is arrogant and hopelessly relativistic. The next guy could point the finger and say, “I took it like a man longer than you. Shame on you, bad person.”

  29. sheas says:

    You could look at it this way: this is creating a whole new job industry as a recession looms- foreclosure specialists! Who will offer their services the cheapest? Compete, compete, compete!

    Sad.

  30. rmz says:

    BRILLIANT!

    Also, that picture of the smiling woman packing up her houseful of foreclosed shit seems so weird to me.

    Also, LENS FLARE~~~

  31. veraikon says:

    @RandoX: My thoughts exactly. Warms the heart, don’t it?

  32. RandoX says:

    @cashmerewhore: It’s CA only, so if you’re someplace else, or if you’re willing to service other states, you’re still in luck.

  33. youbastid says:

    @CreativeLinks: If you join my site, youwalkawaywalkaway.com, I can tell you how to walk away from paying youwalkaway.com. For $332, you’ll get a 30 minute consultation and I’ll tell you that you don’t have to pay them for one full month!

  34. cashmerewhore says:

    @RandoX:

    Awesome. Now to find friends lacking morals…

    I mean, willing to help those facing forclosure.

    Coming soon to Ohio!

  35. King of the Wild Frontier says:

    Sounds like this decade’s version of Canter & Seigel [en.wikipedia.org] ; charging people to fill out paperwork that they could do themselves. Unfortunately, given that their clients are people that, for the most part, got conned in the first place, it’ll probably make them a mint.

  36. Whoyaa says:

    I went to the gym the other day. Told them I want to lose 80 pounds by this weekend for my high school reunion. Why don’t that have a pill I can take instead?

  37. Aphex242 says:

    @tmccartney: I agree completely. Having worked in the mortgage industry, I can tell you I actually fielded calls from customers asking me how to do this ‘the right way’.

    People who are upside-down in their house, facing an ugly adjusting rate, rising property taxes and higher homeowner’s insurance have literally no choice in some circumstances. Again, I’d agree with tmccartney that the last line of this piece is pretty ignorant.

  38. cabalist says:

    I knew that someone would take offense at the “Take it like a man”. Oh well, you can’t win them all.

    Again, there is an “agreed to” penalty for murder (rape, theft, etc.), too. Is it OK to commit murder (rape, theft, etc.) as long as you are willing to accept “a legally agreed-to penalty”? Of course not.

    The penalty in a contract is there IF ONE SIDE OF THE AGREEMENT DOES NOT STICK TO THE CONTRACT. At that point the side that has been slighted has the option of petitioning a court to ENFORCE THE CONTRACT’S obligations and/or penalties.

    Doing what is best for one’s family is something I know about. In my comment I spoke of my worries when buying our first house:

    “When my wife and I bought our house ($99,000 several years ago) I was scared shiftless that I was going to throw my money away on something that wasn’t worth what I paid for it. I used to stay up worrying that I would screw up in buying the house and we would be paying for it for years. I got books from the library, I attended NACA mortgage prep classes (a nonprofit aimed at getting lower income applicants into houses with standard mortgages; we used the info that they taught but did not actually go through them), I checked out books from the library, etc. This is due diligence. Whenever making a large purchase one should do it.”

    That is acting like a man and living up to one’s responsibilities. I work with people who earn less than I do and, at the same time we were buying our house, they were buying houses MUCH more expensive than mine. Now they are in trouble–who could have seen THAT coming (duh). If I got myself in a mess like those on now-adjusting ARMs it would be the same. If I walked away I would be irresponsible.

  39. johnperkins21 says:

    My friend recently walked away from his house. Sometimes it’s simply the best thing a person can do for their family. In his case, he bought the house for more than it was worth at the time and financed 100% of the loan with interest only payments. He figured he and his wife would be there for a long time and it was pretty much their only option for getting a house at the time (they relocated, and his wife didn’t have full time employment yet).

    Fast forward a year, and they got divorced. She moved out and left him with the mortgage. When he met someone else and decided to get married, the market crashed. Since she had a bigger house with a much better mortgage, they decided to move in together to her house. They were paying two mortgages while trying to sell his other house. 14 months later, and a list price of $60,000 less than what he owed, the house still wouldn’t sell. He ended up working a part time job to try and cover the added expenses. It was taking a huge toll on him and when he called the bank to try and work something out, they refused to talk to him unless he was in default.

    He talked to an attorney and decided that based on the language in his contract, he could walk away and only be liable for the taxes on the bank’s loss. It was a very tough decision, and he did as much as he could to sell the house. He put over $4000 into the house doing upgrades and renovations to make it more appealing to buyers.

    I’m not saying that walking away is a good thing, or that it’s right for everyone, but it’s explicitly detailed in the contract what the terms are in these cases. Sometimes, as Fearuncertaintydoubt said, the health and welfare of your family comes before any “moral” decision to be burdened by a bad decision. Sometimes people make mistakes, sometimes they’re victims of circumstance, and sometimes they’re just taking advantage of the situation. I don’t agree with walking away in all circumstances, but watching my friend stress about trying to sell his house for months makes me sympathize with his situation and I agree 100% with his decision.

  40. mac-phisto says:

    did anyone catch this (emphasis mine)?

    If you QUALIFY for our plan:

    Your lender WILL NOT be able to call you in attempt to collect!
    Your lender WILL NOT be able to collect any deficiency or loss they may receive by you walking away!
    You WILL be able to stay in your home for up to 8 months or more without having to pay anything to your lender!
    You CAN have the foreclosure REMOVED from your credit!

    that’s quite a bold statement.

  41. HRHKingFriday says:

    @cabalist: Wouldn’t it be great if more americans were like that? If they all read all the fine print in their credit card offers, and would choose to spend time at the library instead of watching the latest episode of American Idol?

    Right or wrong, that’s reality that most people aren’t that “diligent” as you put it. You and your holier than thou attitude aren’t going to do a damn thing about that. Just like you can’t do anything about people who have 7 kids with 7 different spouses and wonder why all they can afford is a big mac in front of the TV. Go ahead, go try to tell them how to parent, or better yet suggest that they should have taken a responsibility test (to *your* standards, of course!) to see if they can even procreate in the first place.

    It would be best to hope for a government that has stricter regulations as to who can purchase a house. But ya know what that’s called? FASCISM!

  42. cabalist says:

    All of this is well and good.

    In the end, people are walking away from their responsibilities (in so many ways) for their own benefit and it is hurting people who have “played it safe”. I am not saying they are the only people getting hurt (the banks are getting hurt, the loan officers, people trying to get legitimate loans now that cannot, neighborhoods with empty homes, etc.). If a move harms innocents I cannot justify it. ‘Well, it also hurts the mean ol’ banks and corporations’–whatever.

    It hurts innocent people as well. I’m sure these people will have no problem sleeping tonight.

  43. cabalist says:

    Holier than thou. Hmmm, for not wanting to reward behavior that is detrimental to the economic fabric of our country?

    And yeah, obviously stricter regulations, after the gang-busting success of the last bout of deregulation, is fascism. And making sure that everyone has a house is communism.

  44. mac-phisto says:

    @cabalist: if you are considering morality when entering into a contract, you are putting yourself at a huge disadvantage. the whole point of a contract is to bind the parties to the law. if both sides were noble & could be held to their word, you wouldn’t need a contract w/ remedies & penalties would you?

    the company that signs the mortgage contract w/ you pledges no such morality. their decision to lend to you is entirely a business decision. & so it should be with you, or anybody else.

  45. mac-phisto says:

    @cabalist: regarding this post…

    It hurts innocent people as well.

    this is not a communist nor a socialist country. none of those innocent people were party to the contracts signed, so any harm (real or imagined) is irrelevant.

  46. Jaysyn was banned for: http://consumerist.com/5032912/the-subprime-meltdown-will-be-nothing-compared-to-the-prime-meltdown#c7042646 says:

    @laserjobs:

    What was the point in reposting the article above?

  47. HRHKingFriday says:

    @cabalist: Holier than thou because I don’t think you’re addressing the problem correctly. There are a lot of people getting laid off, or having their hours/commissions cut. People who couldn’t pay their mortgages if they tried. Or maybe they bought the house on a fixed rate 10 years ago, but then had to take out a HELOC on their recently inflated home because their insurance wouldn’t pay for a costly medical procedure.

    And what of the people brainwashed in to Bush’s “ownership society”, regardless of their financial situation. And what about people like me that live in overly inflated area where even a small 2 bedroom cottage would run us 400,000?? And the only way I, with mid to good credit would be offered a loan that size would be through a sketchy ARM. Thankfully, I gambled the correct way and chose not to buy my first house, but I can’t say the same for my peers. And not one of them, I guarantee, is one of these “irresponsible assholes” as you seem to paint them.

    When the government draws an arbitrary FICO line and tells everyone below it- hey, sorry, you can’t own a home. That, my friend is fascism. Sure, the free market is a disaster because it allows stupid flippers and investors to ruin it, but at least I’m in charge of my own destiny.

  48. @youbastid: Oh damn, that was too freaking funny. Soda out my nose, literally.

    Thanks for the laugh :)

  49. snoop-blog says:

    @cabalist: says “Again, there is an “agreed to” penalty for murder (rape, theft, etc.), too. Is it OK to commit murder (rape, theft, etc.) as long as you are willing to accept “a legally agreed-to penalty”? Of course not.”

    i think your confusing violence with paying bills. if your comparison was even a bit accurate, your pretty much saying that if someone is willing to walk away from their home and face the penalties, they are also willing to commit murder/rape and face penalties? don’t think so, but thanks for playing!

  50. snoop-blog says:

    @cabalist: i don’t think anyone thinks of this as “ok”, more like no other options.

  51. snoop-blog says:

    i don’t think ANY rapist/murderer has any intentions of ever facing up to any penalties.

  52. gingerCE says:

    @tmccartney: I agree with you in the sense most of these homeowners cannot refi and/or have already damaged their credit. Walking away is an option for them.

    However, I’ve noticed a trend in California that homeowners are renting out their entire houses (some are just doing rooms). There are lots of listings. I know someone who rented out 3 rooms to her house. Another person was able to rent out their entire house for the cost or near the cost of the mortgage. Before someone walks away, maybe an option is trying to get renters.

    On the flip side, there’s been cases where people signed a lease to rent a house, and the homeowner pockets the rent, but lets the house go into foreclosure leaving the renters high and dry.

    On the flip side,

  53. HRHKingFriday says:

    @snoop-blog: Exactly. Anyone who thinks that being evicted, ruining your credit score, and having your family in an apartment for 7 years is a good or fun option is sorely mistaken. If your choice, Cabalist, is putting food ont he table or paying your mortgage, WHAT WOULD YOU DO???

    I’m sure there are idiots out there playing the game, like in the youwalkaway.com website. But trust me, those people are the exception, not the rule.

  54. cabalist says:

    The thing is that people “do” think that this is “ok”, unfortunately. See the Consumerist post on “Is it OK to Walk Away from your Mortgage”.

    Per the murder/rape/theft quote. It is an argument made many times (even on Consumerist). It isn’t that these people would feel the same walking away from their mortgage as they wold if they murdered/raped someone. The point is that the logic behind FEARUNCERTAINTYDOUBT’s mortgage ‘walk away’ argument allows for murder/theft/rape/[any crime with a penalty] as long as the law (social contract) provides for a legal penalty (and you accept the penalty). I.E. anything is OK as long as there is a legal penalty and you ‘pay’ for your crime. Follow the logic.

  55. sickofthis says:

    @cabalist: “Even better than the option of keeping their word and upholding the contract and paying off the property that they made a deal to pay off?”

    What if they don’t have any money? You and the original poster seem to believe that all people in foreclosure are just there because they chose to stop paying their mortgage as some kind of protest.

  56. medalian1 says:

    This is awesome! You should also watch the TV show 60 minutes on HOUSE OF CARDS talking about the same thing. I hope more people do it which would bring house prices even further down. 30% more baby! Cash in hand waiting to buy.

  57. snoop-blog says:

    @cabalist: i didn’t see any logic behind the rape murder statement. still don’t. violence is not the same as not paying your bill.

  58. cabalist says:

    HRHKINGFRIDAY: The exception to the rule? Maybe. Food or mortgage? That is a decision that few will have to make. Lifeboat philosophy is convenient.

  59. cabalist says:

    I can’t help you, SNOOP

  60. bustit22 says:

    @jefino:

    “seize and desist letter” huh?

    I think I’ll pass on your advice.

  61. snoop-blog says:

    @cabalist: where are these criminals who thought it was ok to rape a woman because they were ready to go to jail? i’m not aware of any murderers who tell the police, “hey i feel i have no other option but to murder this person, but i am ready to face the consequences so it’s ok.”

    now what about, calling your mortgage company and saying “i feel i have no other option but to have you forclose on my home, and i’m fully aware of the consequences, so do what you have to.”

  62. HRHKingFriday says:

    @snoop-blog: Unless Cabalist is in the mortgage industry, or debt collection industry. Which would explain his flawed moral authority argument to squeeze money out of people, who, i’m still going to argue, are going to spend on basic necessities (food, fuel, medications).

  63. snoop-blog says:

    am i the only one who thinks this murderer/rapist senario is bullshit?

  64. HRHKingFriday says:

    @snoop-blog: no. but if you have a nice job and a nice life, i can see how some people would be that naive. if you’ve never had to really really budget, and work minimum wage jobs and support a family, i don’t think you’ll know much about what’s really happening in the subprime crisis.

  65. johnperkins21 says:

    @snoop-blog: am i the only one who thinks this murderer/rapist senario is bullshit?

    No. Everyone in the world save for cabalist understands that it’s bullshit. It’s so completely asinine that it doesn’t deserve mention.

    For one thing there’s no contract involved. The murdered party did not get the chance to agree to the terms. The victim didn’t sign an agreement that said “if you kill me, then you’ll go to jail. I agree to these terms.”

  66. mac-phisto says:

    @cabalist: there is no logical argument here b/c there is no morality to consider.

    2000 years ago, jesus taught his followers to walk away from their possessions. i think most of us still consider him moral. in islam, riba al-nasi’ah (which includes interest on loans) is considered immoral. if you prefer a non-religious reference, consider ghandi, who walked away from everything & became an ascetic to promote the moral cause of liberty for his people. the point is, save morality for topics that deserve it.

    there’s a saying: “business is business”. i think that sums it up nicely.

  67. TWSS says:

    As another commenter pointed out above, owning a home is the American Dream. The idea that buying a home is an achievement to strive for is further reinforced by our federal tax code. I guess we shouldn’t be surprised that lots and lots of people made irrational choices in order to attain what they’ve been inculcated to believe is the American Dream, should we?

    Now, I’m not a Libertarian or anything (rimshot), but why don’t we start stripping bullshit deductions from our tax code that were only placed there to reward and encourage behavior which is arbitrarily (I recognize that’s an arguable description) deemed beneficial to society?

    And I say that as someone who bought into the whole property-ownership idea hook, line, and sinker. I bought my first house at 25, and my husband invests in residential and commercial real estate for a living. Yeah, getting rid of the mortgage interest deduction would hit us in the pocketbook, but we’re not exactly deserving of welfare, you know?

  68. jefino says:

    @bustit22: i meant to say cease..

  69. econobiker says:

    @TWSS: If you paid cash and didn’t leverage loans then you’d have no interest to deduct but also no interest to pay…

  70. meneye says:

    @rmz: I know. Who made this website, with its elementary photoshop lens flare effects. I guess they cant afford better

  71. AmericaTheBrave says:

    This is just voluntary surrender, or whatever the legal term is, which can be done when someone is trying to reposes an item (car, home, etc).

    As far as credit scores go, I don’t think there’s much of a difference between them taking it forcefully or you turning it over. Both are horrible for your credit. Do what Ben suggests, refinance and try and sell before you let it get to this state.

  72. laserjobs says:

    @Jaysyn: I posted Mish’s comments first and then they were added to the article. Yes I did read the article before I posted.

  73. fearuncertaintydoubt says:

    @cabalist: Your analogy to violent crime is very flawed. Civilization depends upon people obeying the law. The law says that murder is wrong. The law says that if you break a contract, those penalties specified in the contract can be enforced. It does not say that breaking a contract is a criminal offense. It says that making or breaking a contract under fraudulent conditions *is* a crime.

    So there’s a analogy you have been reaching for. And if anyone were to say, I’m going to forge documents or cheat or some other thing to get or get out of a mortgage, then I would agree with you that they are not “OK”.

    Under your system, it would be legal and enforceable to surrender your first-born, or sell yourself into indentured servitude. It’s not. Contracts are not immutable. It is your rigid mind which does not allow for this, and why you cannot see that it is a strength of our system that contracts have fixed penalties for breach. Then everyone moves on.

  74. yesteryear says:

    well, you can leave your baby at the hospital “no questions asked” so why not walk away from a house that’s also causing you problems? i think its a fantastic idea.

  75. @sheas: This is why if you’re a lawyer it always pays to have some bankruptcy law. When the economy’s good, there’s always work for lawyers. When the economy’s in the shitter, there’s always work for BANKRUPTCY lawyers.

  76. @cabalist: “Again, there is an “agreed to” penalty for murder (rape, theft, etc.), too. Is it OK to commit murder (rape, theft, etc.) as long as you are willing to accept “a legally agreed-to penalty”? Of course not.”

    Yes, because those are CRIMES, which are different from CONTRACTS, which is why we have a whole different set of laws that apply to them.

  77. joexmd says:

    Another fine example of the new jobs the Bush administration is creating…

  78. usmcmoran says:

    I love the pic of the family -kid: “yay we’re going to live in a shelter”

  79. normanm4 says:

    Do they do divorce too? :)

  80. vastrightwing says:

    and I’m sure they take it very seriously!

  81. misslisa says:

    This story reminds me of a conversation I had with my co-worker. He stated, “My mortage is almost paid off – I only owe $150,000!” He then went on about the new cars & additional home he & wife would buy this year since debt was so “low”. I looked at him like he was nuts and said, “Dude, you think $150,000 is almost paid off? That’s what my entire mortgage was when I bought my house!” He then looked at me like I was the one who was nuts. Moral of story: Some bizzare perceptions of finance helped pave the way to this high-forclosure, subprime meltdown.

  82. stinerman says:

    @cabalist:
    If “everyone has a house” is communism, then sign me up for communism.

  83. tk427 says:

    Use that $995 towards the 1st/last/security deposit instead.

    The sheriffs deputy will let you know how much time you have left.

  84. fairywench says:

    @CABALIST:
    Since everyone has already picked apart most of your posts, I’ll go after something they’ve missed. You made a reference to “taking it like a man”. Well, that was incredibly sexist of you. Shouldn’t it have been “taking it like an adult”? By using the gender-specific word “man”, you’ve managed to imply that all women are immature and can’t possibly be expected to behave in (your definition of) a mature, responsible manner.

  85. ceglaw says:

    Everyone seems to be missing the fact that walking away will only
    work in a very few states which have laws providing for no recourse
    loans. California, the only state in which they currently operate, has
    such a law, but it only applies to purchase money mortgages (those
    actually used for the initial purchase of the home) which means that
    anyone with a refinance or second mortgage or equity line of credit
    fails to qualify for the deal offered by this group. And even then the
    person doing this will likely receive a 1099 for at least the
    deficiency on the mortgage balance if not the entire mortgage amount.
    People would probably be far better off consulting with an attorney who
    might be able to offer viable options or at least know enough to make a
    proper determination of whether a particular individual will actually
    be able to “walk away” and what the consequences will be.

  86. CandleMaker101 says:

    I don’t understand why anybody would pay somebody to “walk away” if you’re going to walk away just do it! I filed bankruptcy in 2003 after several conversations begging my mortgage company to help me. I had purchased my house with my ex-mother-in-law who had passed away, but before she passed away she file bankruptcy, leaving the debt in my name only. The mortgage company told me they would refinance the house in my name only after her bankruptcy. When I called them back to ask for the documents that had supposedly sent to do this, they told me they were no longer refinancing “my type of loan” but wouldn’t explain what my type of loan was. Even after she passed away they still wouldn’t remove her name from the bills they sent. My ex-husband was not on the mortgage so when he decided to walk away I was stuck all by myself. I did everything I could to save my American Dream. I had 2 full time jobs and rented out 2 of the bedrooms and it still wasn’t enough. I considered simply walking away, but figured if I was going to destroy my credit anyway I should go out in a blaze of glory and walk away from all my debt. I acted as my own attorney for the bankruptcy so my creditors were still allowed to contact me. Every time one of them did asking me to reaffirm the debt they were holding, I gave them the mortgage companies telephone number and advised them to ask the mortgage company if they were interested in reaffirming my debt. The mortgage company called me and asked me to stop having my other creditors call them. The only joy I had during this horrible time. Bankruptcy laws have changed since then, so this may not be an option for some people. However, the reason I decided to add my comments is that to turn this in to a moral issue is not a fair thing to do. I regret that I had to decide to file bankruptcy and I still feel guilty about it sometimes. I realize that some people get into debt with no intention of paying, but most people who are buying homes wouldn’t even think of walking away someday at the time they are buying because they don’t think that they might be in this sort of position. People expect their lives to get better better not worse. This crisis is being caused by many factors, the least of which is bad decisions by home buyers, but that’s a whole different topic. I tried to take it like a man but I guess that didn’t work because I’m a woman. So I’ll end my 2 cents worth here.