ST Alpha - "i don't understand why it's not just as acceptable for the bank to get the property as it is for them to get the mortgage payments. If the two are not" (Reading a Post)

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In response to "It's fine by me. If you walk away, you should get punished. But some people still need to walk away. -- nm" by Mop (222 lbs)

i don't understand why it's not just as acceptable for the bank to get the property as it is for them to get the mortgage payments. If the two are not

Posted by mara Jun 23 '10, 15:06

comparable in their mind, why were they willing to make the loan?

Responses:

Becuase they were comparable when the loan was made. - Will Hunting Jun 23, 15:14 26
- its never a fair deal - lafarrow Jun 23, 15:16 25
  - Yeah.....that ability to refinance on the homeowner's whim....that the bank never comes back to when prices have no question jumped..... - Will Hunting Jun 23, 15:17 24
    - I think the very nature of a mortgage is a bank saying, in effect, if you don't pay, we get your house. The borrower is saying, okay, it's a deal. -- nm - mara Jun 23, 15:19 22
      - Until someone forces me to sign that deal, it's equally on me. - Will Hunting Jun 23, 15:22 19
        
        You don't feel that the institution with hundreds, if not thousands, of employees and far more capital has a tad more leverage and thus more - musubi Jun 23, 15:25 12
        
        No. I believe my life, my home, my money....I have a far bigger responsibility to my own economic situation - Will Hunting Jun 23, 15:29 11
        
        so if i read the contract in a way that you think is unfair you'll still - lafarrow Jun 23, 15:33 2
        
        What's unfair about on the 1st of each month, you'll pay $$$ for this property that as of Date has $$$ value. - Will Hunting Jun 23, 15:36 1
        
        Except the banks crashed the market by loaning to people that couldn't pay, and the honest people are supposed to pay on a devalued property. - Redmond Jun 23, 15:46
        
        I should clarify, this is not specific to those who walk away from loans they have the ability to pay. - musubi Jun 23, 15:33 7
        
        I think lenders should make the wisest decisions for their interests. - Will Hunting Jun 23, 15:34 6
        
        Therein lies the rub. As the big guy who has little to lose (and can absorb many bad mortages) shouldn't the onus be there to do the rigth thing? - musubi Jun 23, 15:40 4
        
        If it weren't for market regulations, they would operate the same as loan sharks for maximum shareholder revenue. -- nm - Beryllium Jun 23, 15:41 3
        
        (And, frankly, this is exactly what they did, and exactly what caused the collapse) -- nm - Beryllium Jun 23, 15:43 2
        
        Yup. And as corporations there's no "personal responsibilty" to scold them about. - musubi Jun 23, 15:44 1
        
        Well they should be going to jail but that isn't going to happen. Lie Steal Cheat and be rich with no risk of prison. -- nm - Redmond Jun 23, 15:54
        
        they don't really have a good track record for this. -- nm - Beryllium Jun 23, 15:37
        
        are you kidding me - lafarrow Jun 23, 15:23 5
        
        Sure they do....they find other sources of money willing to make better deals for that loan - Will Hunting Jun 23, 15:25 4
        
        With a million options which makes almost any apple to apple comparison impossible. - musubi Jun 23, 15:28
        
        take a vote of your fellow TTers right now - lafarrow Jun 23, 15:27 2
        
        IM: not to play? What, and end up renting? Those are the *real* retards! - Dr.Vermin Jun 23, 15:33 1
        
        everything in cash baby - lafarrow Jun 23, 15:36
      - the issue is the deficiency - meaning the bank doesn't just - lafarrow Jun 23, 15:21 1
        
        [deleted]
    - its not on your whim as a homeowner - lafarrow Jun 23, 15:19
they take a haircut on the foreclosure sale in this market -- nm - chuckles Jun 23, 15:10 1
- banks never lose -- nm - lafarrow Jun 23, 15:15
Because in many cases the property isn't worth what they loaned on it. -- nm - MojaveMeg Jun 23, 15:09 1
- BI think that's their problem. They're the ones holding the mortgage. -- nm - mara Jun 23, 15:16
Banks want to have their cake and eat it, too. Clearly the two are not comparable since the crash. - Mop (222 lbs) Jun 23, 15:09

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i don't understand why it's not just as acceptable for the bank to get the property as it is for them to get the mortgage payments. If the two are not

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