Homeowners Playing It Touch With Their Lenders

May 14th, 2008

Some homeowners like to play it really savvy with the bank. This helps them gain time as well as defer the payment and avoid foreclosure. They can be both brash and uncouth, and even end up into all sorts of trouble in the long run.

A man from Discovery Bay, who was asked to point out the “upside down” situation of his house said that he was in fact bemoaning the plans to capitalize on it, as he was behind around $260,000 in due payments for his mortgage. This tacky situation got him after quite some endeavor itself. He had pulled out $100,000 and used it to revamp the house. He has a gorgeous pool in his already magnificent property, which is continuously reducing in value over the last few months. So, he has decided to build and add equity to it for over the next four to five years rather than paying the mortgage. In this way, he has not made a single mortgage payment for nearly five months in a row.

The man has no wish to regret and make the payments. Instead, he enjoys playing the exact ‘tough’ game that the banks have played with the public for so long. He claims that he has decided to refrain from making any further payments because he knows that he cannot sustain them for too long, which will eventually end up starting foreclosure proceedings. He has made a formal agreement that he will be making up the unpaid credits by the end of the loan period, but what he is really working on doing is to play it tough with the bank so that the bank finally agrees to settle on a lower rate of mortgage by the end of the mortgage tenure. This plan, however, does not come with sufficient legal backing or even practical and sound logic.

All the lender who provided the property mortgage could do is to sue the person for capitalizing on the property without paying off due debts on it. The market value of his property was way higher than expected at the time of signing the mortgage deal, and the owner hopes that it will eventually lope down to something agreeable. Now, what if the reverse action takes place? Though it has been over optimistically estimated that it would come down to $450,000 instead of the astronomical $710,000, it is possible that the reverse could happen.

The owner says that if the bank doesn’t concede then he will simply walk away from the whole situation, regardless of foreclosure.