default credit card

[afterburn 549]

Can credit card company take your house ??
I am not sure why so many people just up and walk away..Upside dwn now ?
The house not worth what they bought it for..
or are the credit card companies latching on ?

[ramonesfreak]

i dont understand your question exactly...but

credit card company can sue you when in default (on the credit card account) and get judgement which is then filed with country clerks office. once judgment is filed, plaintiff can exercise whatever legal remedy they have to get judgement satisfied.... take your house? no. there are secured debts and unsecured debts...big difference. credit cards are unsecured...i.e., no specific collateral secured by a lien..unlike home equity loan or mortgage

[afterburn 549]

OK so most people must be bailing because all of a sudden the house is worth less then what it bought it for...?

[ramonesfreak]

people bail because they have a variable interest rate and when it changes, they cant make the pmt and because their house is not worth what they hoped it was worth, they can not sell it for profit or borrow against it

[lendaddy]

Originally Posted by afterburn 549

OK so most people must be bailing because all of a sudden the house is worth less then what it bought it for...?

Yep, way underwater and they probably can't make the payments any longer now that their income has shrunk and their lines of credit dried up.

[afterburn 549]

And YET the GOVT is Bailing banks cause they are not smart enough to change a way as to person can keep paying !! ??
OMG I am PISSED at the GOVT
I am pissed at the banks
^%%$#$YU**(()))))(*&^%$#$%^&

[mthomas58]

Originally Posted by srandallf

i dont understand your question exactly...but

credit card company can sue you when in default (on the credit card account) and get judgement which is then filed with country clerks office. once judgment is filed, plaintiff can exercise whatever legal remedy they have to get judgement satisfied.... take your house? no. there are secured debts and unsecured debts...big difference. credit cards are unsecured...i.e., no specific collateral secured by a lien..unlike home equity loan or mortgage

Credit Card company (unsecured creditor) can sue for default and obtain a default judgment. A judgement (unsecured claim) can then be attached to real estate as a lien (secured claim). The lien can be attached to any and all real estate that the creditor can identify that the borrower owns. The lien on the house could then be collected via a foreclosure action, however, the lien holder would have to pay off all prior mortgages or liens at foreclosure to obtain title. So unless there is substantial equity in the house it is possible, but UNLIKELY that this would ever happen. The more likely event is that the lien will just sit there and whenever the house is sold or refinanced a settlement with the Credit Card company will need to be made or your cannot deliver clear title to the mortgage company or the buyer as the case may be.

[mthomas58]

Originally Posted by afterburn 549

And YET the GOVT is Bailing banks cause they are not smart enough to change a way as to person can keep paying !! ??
OMG I am PISSED at the GOVT
I am pissed at the banks
^%%$#$YU**(()))))(*&^%$#$%^&

As a banker, I take exception to your view that banks are not smart enough to change loan terms so that clients can pay. If this is your view, you clearly don't have an understanding of the underlying issues. OMG I am pissed at those who throw stones without understaning who they are throwing them at or why. I'm done....I assume yours was a rant too

[Rick Lee]

Originally Posted by afterburn 549

And YET the GOVT is Bailing banks cause they are not smart enough to change a way as to person can keep paying !! ??
OMG I am PISSED at the GOVT
I am pissed at the banks
^%%$#$YU**(()))))(*&^%$#$%^&

What the hell are you talking about? Plenty of banks were forced to take bailout money and some have been prevented from paying it back. I've seen people post on chatboards that they're stopping mortgage payments just because their values have dropped, not because they can't afford the payments. If this happened with car depreciation, there'd be no reason to pay back any loan. If you can afford the payments, you have no reason to stop making them. Value or market price or ARM adjustments have nothing to do with it. Furthermore, anyone who can't calculate an ARM adjustment has no business getting an ARM. Not the bank's fault a borrower is illiterate.

[targa911S]

Originally Posted by afterburn 549

OK so most people must be bailing because all of a sudden the house is worth less then what it bought it for...?

Here they are just burning them down and collecting the insurance money. Sad.

[afterburn 549]

Originally Posted by mthomas58

As a banker, I take exception to your view that banks are not smart enough to change loan terms so that clients can pay. If this is your view, you clearly don't have an understanding of the underlying issues. OMG I am pissed at those who throw stones without understaning who they are throwing them at or why. I'm done....I assume yours was a rant too

Why should anyone or Govt bail out any business ?
I tell you why in this case.
Those at the top had their stinking grimy fingers in the jar with them.
If I don't understand bailout you don't understand socialism

As a banker I don't think you understand your own blunder of stupid Pius statements

[Hugh R]

My albeit simplistic understanding.

Congress pushes Freddie Mac and Ginnie Mae to get more homeownership, especially to "People of Color" (I hate that term). FM/GM lower standards and start buying more junk mortgages, (remember stated income, no down payment, interest only, 40/50 year loans?) loan brokers don't care, they get a commission and sell the loans. CitiBank, et. al. buy and bundle good and bad loans and sell them off. More people can buy with junk credit, drives prices up, vicious circle. People get ARM adjustments, and can't make the monthly note, they start bailing. Bundled loans historically might have had 1% bad apples, then it was 5% maybe more, you didn't know, the bundled loans were broken up and rebundled and sold again, all of a sudden no one knows what they have that is good or bad, values on those "securities" plummet. Banks that had those re-bundled securities all of a sudden see their "Assets" plummet. Since Assets=liabilities + equity, everything goes to crap.

May simplistic take.

[mthomas58]

Originally Posted by afterburn 549

Why should anyone or Govt bail out any business ?
I tell you why in this case.
Those at the top had their stinking grimy fingers in the jar with them.
If I don't understand bailout you don't understand socialism

As a banker I don't think you understand your own blunder of stupid Pius statements

I never stated that I support govn't bailout because I do not. I think antiquated business models and those ruined by greed and corruption should be allowed to fail. Much of the correction that we are going through in the real estate industry was paid out in the form of bonuses to the investment banking industry that packaged and sold mortgage backed securities using smoke and mirrors.

If you are referring to those at the top having their stinking grimy fingers in the jar with them you are referring to "investment banking industry" not the "commercial banking industry" then I agree with you - big difference.

I did not start making Stupid Pius Statements - you did. I just responded to your overly broad accusatory commentary. You called me stupid.

[afterburn 549]

SIR
I do not think you are stupid !
The statement might have been..we all make mistakes..on with the day OK ?
The Bail out of AIG that pisses me of to!
It is all a bag of worms
people running stuff that do not have a clue or too greedy to care add the congressmen and senators in the center of the pile...we get what we have

[jyl]

There is a lot of misinformation in this thread.

[Tishabet]

Originally Posted by jyl

there is a lot of misinformation in this thread.

+1

[Looking_for_911]

Originally Posted by mthomas58

As a banker, I take exception to your view that banks are not smart enough to change loan terms so that clients can pay. If this is your view, you clearly don't have an understanding of the underlying issues. OMG I am pissed at those who throw stones without understaning who they are throwing them at or why. I'm done....I assume yours was a rant too

And I take exception to a banker -- if you are a banker -- that takes exception to our comments without Explaining the situation from your unique, insider point of view. What are the "underlying issues?" Please?

[dhoward]

Snow tires.