What would you do?

[c w d]

I know a guy that knows a guy that would torch it.

I suspect one of my neighbors torched his home he purchased in 2005. His mother lives next to me and he moved back in a couple of months ago. She said his house burned and the insurance company threatened him with arson charges if he filed a claim with them. She couldn't believe those evil insurance people would do such a thing. Mothers never want to think the worst of their sons.

 

[REM sleep]

no answer will make him happy

Unfortunately, no answer anyone will give in this thread will make your friend feel better. To answer your question, I would feel like crap, and I do feel the same stress your friend is feeling b/c I am going through the same thing. Since being appraised in 10/06 my house has lost about $ 150,000 in value. It's on the market. People love it, we have received several offers from dreamers and tire kickers (no it's not a dbl wide). I am selling b/c I have a job offer out west that I can not resist, but if that weren't there I would stick it out. So if he can, he should stick it out. Forget about the investment. He should live in his house, enjoy it and forget about the value until he wants to or needs to sell it.

 

[JoTetherow]

You lost money. Adjust for inflation.

not really. i had no debt on the house and it gave me a nice income for many years. my expenses for the house over the years were very minimal and atypical. i did raise the rent to 525 the last few years. i figure i averaged 12% on that investment for many years.

what should they guy do? depends on if he has any morals or ethics..or personal pride.

jo

 

[John Hassler]

I cannot give you an intelligent answer to the question without knowing his entire financial situation and future plans. I will say this much though....big businesses, including banks have no problem renegotiating deals, getting bailed out, restructering debts, walking away from deals, etc. when it makes business sense to do so. Heck, a lot of these mortgage companies feel there is no need to pay their appraisers in a timely manner or, if the appraiser did not play ball, pay them at all. It is only private individuals that are supposed to have some sort of moral obligation to not to walk away from or renegotiate deals and just continue paying no matter how stupid of a business decision that may be. Seeing how the mortgage banks in large part created the real estate bubble through their fraud, use of bogus appraisal, their proliferation of unsound credit standards and lack of underwriting, he should not feel bad about hanging the loss on the loss on the mortgage bank if that is the sensible thing to do business wise. Mortgage lending is a business, and defaults are just part of the business. People should treat banks and mortgage companies exactly as they would treat us, no better and no worse.

An excellent post!