Borked Pseudo Mailed wrote...
> What's a borrower to do? If your loan balance exceeds your
> home's value, stop paying your mortgage immediately.
>
> Remember, in the Bernanke/Pelosi/McCain world, the
> responsible get screwed, and the reckless get rewarded.
The responsible don't take out loans they can't afford to repay.
If the person taking out a 30-year mortgage intends to pay it
off, then short-term market fluctuations shouldn't be a problem
because he intends to live in the house for years instead of
trying to turn a profit today. People who buy property to
resell at a profit are speculators and deserve to lose their
money because they knew the risks.
> If you stop paying your mortgage, your bank will either
> voluntary renegotiate the terms, or Congress will force
> them to do it. If you keep paying on an underwater house,
> you're just throwing good money after bad.
You want them to renegotiate the terms so your Burger King
paycheck covers a $200,000 mortgage. While it is true that
bank officials were negligent for lending you so much money,
the fact is that you hadn't been declared legally incompetent
and as an adult the contract you signed is binding. That
you are illiterate or just too lazy to read the contract is
not an excuse for not paying your debts.
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