October 2, 2011

Mortgage Karma

Today I read an article published in the Wall Street Journal talking about banks going after delinquent lenders who had their houses foreclosed but whose house was sold for far less than what was owed on the loan.   This made me feel relief.  You can tell me that I am cold.  Why do I like seeing people suffer?  These people lost their jobs and haven't been able to find employment since.  So how are they suppose to pay?  Truly, I do have sympathy for them...or at least for some of them.

You see I know of many individuals who chose to lie on their mortgage documents.  People lied about their income, diminished the current debt, floated cash around, or used whatever scheme to ensure that they got the mortgage. Some people even thought that giving the bank a down payment was a crazy idea. How do I know this?  Because people just told me as if it wasn't that unusual, as if everyone was doing it.  And I know that we wouldn't be in the housing crisis if these few individuals were the only ones doing it.  Regardless of what happened after, you are asking for trouble.  Now people are just complaining because the bank isn't working with them or the bank is screwing them over.   Did I miss something?  Who said that everyone is entitled to have a house?  Because isn't this really the bottom line with the people who felt the needed to commit fraud (yes, fraud!) in order to obtain their dream house?  

This whole idea, as you know, comes from American dream of owning your own house, which is something that I would say if you want go for it.  I will not stop you.  However, when I pursue my dreams, I take pride in them.  I work my butt off to get them and feel a sense of accomplishment for obtaining them.  I don't just wake up one morning and steal it, which lets face it is exactly what many people did when they went to buy a house.  Renters didn't want to have to save to have a down payment for their house.  People didn't want to get their financial house in order first (no pun intended).  Instead, these individuals believed that they should have it because everyone else had a house, and they evidently didn't care if the lied and cheated their way to it.  Still that wasn't enough for some, they had to take out second mortgages to be used for whatever they say fit.  The whole situation was like playing with monopoly money. Now I am suppose to emphasize with them because they bank wants to kick them out and maybe even ask for additional cash too?  These are the people who will not get concern from me.

I have gone through financial hardships where I made bad decisions intentionally in order to keep up appearances.  So I can completely emphasize with you on how it happens.  You just wake up one day and you wonder how you got to this place. I get it.  But it not too late to make good on your mistakes.  With help, I got out of my financial crisis and made a commitment to never let myself fall into the same trap again (My parents raised me so much better than that!).  

If you always seem to be the on the "getting screwed" side of the equation maybe it's time to grow up and realize that you made the choices that got you to this place. Regardless that the bank let you get away with lying or whatever, you made the choice.  You could have said "no".  But you didn't.  You had to have you dream house.  So you can continue to complain about how everyone is against you or you can make yourself a better person.  Until them, I am not going to be too concerned if you walk away from your house only to have the bank hunt you down and ask for money.  We'll call it mortgage karma.

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