A tipping point? "Foreclose me ... I'll save money&quot

This fella in Los Angeles is suggesting walking away from his debt and screw the banks. Some reckon it’s an intelligent detached decision, others think he’s a spineless louse “spoiling it for the rest of us”.

latimesblogs.latimes.com/laland/ … point.html

I haven’t read Gladwell’s Tipping Point, but I’d say the US banks will be keen to keep a tight lid on this sort of thinking.

Interesting to see if people here start to think this way (I’m pretty sure this option isn’t open to them though)

People in California and LA in particular are just crazy,
It’s not called the fruit and nut state for nothing :smiley:
I know someone answered this before in another thread but what’s the deal on “dropping the keys through the letter box” & fecking off in Ireland?

The VI spin is already turning to “what does it matter a little negative equity, sure its the place you live” translation: Keep paying yout mortgage on that shoebox you bought with 100%+ mortgage spread over the next 35 years.

What happens in 2009/2010 when the reality of mass unemployment is over us?
If you’ve got a 100% mortgage plus credit card and motor car payments are you really going to fell inclined to keep up payments for the next 35 years?

It’s more tempting to torch the place and walk away if you get to that state.

Its simple, the bank sell the property, then comes after you for the difference.

If you skip the country just never expect to be able to come back and bank again.

The debt recovery agencies operate in more than one country. I know some Germans who skipped the country leaving unpaid utility bills. Intrum Justitia still pursued them on the continent.

The real question is “What % of House Sales are Short Sales in Ireland”

First read this explanation of a Short Sale!

globalhousepricecrash.com/lo … 16064.html

How many have gone to Austin office and explained that they cannot afford the place and want out …and expect teh bank to share their pain with them too ???

read ur post there , but how does lorna ladder come up with 250k?
she obv doesnt have that type of money herself , and who would give her a loan - and who/what are MABS?

We will not have ‘Mass unemployment’ in 2010. We’ll have 8/9% unemployment, with our old favourites of the boat and the plane (V. cheap now compared to last time we needed them)

But LOTS of people will have walked away by then. Many of them will have been away before, returned home and have become accidental landlords, only to find the new paradigm not quite so new as they thought…

They will typically be those who bought a second property, following the crowd, Interest only. This is a big cohort.

The € will be strong, and the temptation to liquidate and leave will be high. The destinations will be the same as they always were.

That will leave us with…

What They leave us with…

Empty, Bank owned Real Estate that nobody wants. This will be self perpetuating, a bubble deflating and leaving less people behind to pick up the pieces.

It’s only a part of the puzzle. Significant though.

Statute of Limitations is 6 years so you don’t have to disappear forever. Just not be around for the serving of any proceedings.

Lorna sells for €250k which the bank then accepts as full settlement for the €300k she owes them because they agreed to the short sale in advance.

The alternatives ( for both) are worse.

but to make that sale , she might have to wait 3 months - so she loses those mortgage repayments as well??

I sit corrected, I take it you would still find it hard to get any sort of financial services here again though?

Credit Bureau listing is I think 6 years as well. But with a different address, as you of course will have, then it does not really matter. Just be careful about who you give your PPS no.

I love this man…

As I understand it though Irish Bankruptcy laws are a little more severe/

any experts?

I believe it is nasty here yes. They liquidate all your assets (pension included) and take a chuck of whatever you earn until 12 years have passed or you have paid off 50% of the debt.

That is my understanding from a brief reading up on it. I could be wrong on the specifics. Definitely nasty though.

I’m no legal expert and am open to correction but does the statute of limitations not mean that they can’t prosecute you 6 years after the fact. They can try you in abstentia and the conviction and or judgement will linger forever?

I’m no legal expert either, but does habeus corpus not apply? (i.e. there are some (most?) crimes that they cannot try you in absentia for).

This is just speculation; but I’d guess that Michael Lynn is probably one of the best informed solicitors in Ireland (or not) on this point of law. :wink:

Hang on a cotton picking minute - we are talking about Civil and NOT Criminal proceedings here. Talk of ‘prosecute’, ‘crimes’ and ‘haebus corpus’ DOES NOT APPLY. The only possible criminal element is if you breach a Court order. However, if they could not serve a summons on you within 12 months of commencing proceedings because they cannot find you, then they are shit out of luck. If no summons is served the Courts cannot make an Order against you!