Re: Finance Humor
Subject: Re: Finance Humor
From: Clark Robinson <robinsonchicago@gmail.com>
Date: 10/8/10, 16:00
To: Scott Mintz <scott.w.mintz@gmail.com>
CC: Barrett Brown <barriticus@gmail.com>, dynamicuno@gmail.com

I can't remember whether it was the Chicago Tribune or NYT that interviewed a guy in his 30's who defaulted on his mortgage, turned out to be a great deal for the defaulter, he was just continuing to live in his condo cost-free until the slow workings of the court got around to actually foreclosing, he was getting over a year of free housing that way--might be an even better deal now that some big lenders are halting foreclosures while paperwork defects are remedied.

Danger: in some states, after the real estate is auctioned for highest bid, the lender can sue the borrower for the difference between what was realized from the sale and the balance on the defaulted mortgage loan agreement.  Also doesn't work to strategically default if you have a significant equity in the property.

In looking at J. Randy Forbes supporters, he was getting money from a realtors' group, like most legislators are, so I think sooner or later a robust housing market will return or what is realtors' lobby paying for?  My cynical prediction is that the home sales industry will be quite happy to see the prices of all residential real estate driven way down, and then they can surf the boom of new buyers brought into the market by the low prices, leaving their last-decade's buyers to eat the cost of the market value reduction.

Realtors are more vile than lawyers, any day.

 

On Fri, Oct 8, 2010 at 2:37 PM, Scott Mintz <scott.w.mintz@gmail.com> wrote:
This is old news and I have no idea what the end result was, but the Daily Show's piece on it brought it to the forefront of my attention.

Long story short, John Courson, president and CEO. of the Mortgage Bankers Association (MBA), said that homeowners who default on their mortgages should think about the message they will send to their family and their kids and their friends. [NOTE: The MBA certainly played a role in the housing crisis through their promotion of home ownership as affordable and the "right time". Their interest in not having homeowners default is likely from a survival standpoint.] Not a month after this statement, the MBA was forced into a short sale of their recently purchased headquarters, accepting less than $42 million for a building that was purchased for $79 million. The MBA only put down 5%, walked away, and likely screwing the bank that lent them the money.

http://www.thedailyshow.com/watch/thu-october-7-2010/mortgage-bankers-association-strategic-default