Methuss

Foreclosure mess backfiring...literally.

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This link goes to a CNN video article about how many homeowners facing foreclosure are making sure the lenders don't benefit from taking their home...by burning them down.

http://www.cnn.com/video/#/video/us/2008/03/14/lawrence.burning.homes.cnn

Here's a scary thought...what if the lender burns it down and blames the consumer for it? You can't escape liability for a debt in bankruptcy if it is related to a felony.

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How sad that it's came down to this. I am sure this stuff is happening a lot more than we hear about. You're right Lady ....BK would have been smarter.

I also wonder if some of these people could just sell those houses to "investors" for what's owed. May be that in these extreme cases, the borrowers owe more than the home is worth though?

And Methuss: Thanks for posting that. I rarely watch the news videos unless they're called to my attention.

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Happens quite a bit in the car insurance side --- behind on payments so the car "gets stolen" only to show back up in a relatives garage or something a few months later.
Family member of mine has a felony for just this reason...:shock:. What originally sounded like a great idea has haunted him for years because the felony has rendered him incapable to get a professional license he needs for his line of work.
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I can't imagine but then again I didn't purchase a house I knew I couldn't afford.

Believe it or not we have had higher end cars with people being 20-25K upside down. Auto finance rolls over old car upside down monies into the new ones... mortgage tricks just on a lower scale.

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I can't imagine but then again I didn't purchase a house I knew I couldn't afford.

Believe it or not we have had higher end cars with people being 20-25K upside down. Auto finance rolls over old car upside down monies into the new ones... mortgage tricks just on a lower scale.

I guess I'm a wimp, but I wouldn't be able to sleep if I was that much upside down on a car. I've mostly had old cars I've paid cash for. The type of cars that you increase their value 25% by filling up the gas tank :lol:.

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I guess I'm a wimp, but I wouldn't be able to sleep if I was that much upside down on a car. I've mostly had old cars I've paid cash for. The type of cars that you increase their value 25% by filling up the gas tank :lol:.
I'm with you. Being upside down on a car would be hell on earth for me. I'd be thinking about it 24/7.
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Why in the world would they keep the car stashed??? They really think they're gonna register it and drive it after the insurance co "forgets" about it?

At least dump it in a lake... at least you're in the clear financially and can start over.

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...The type of cars that you increase their value 25% by filling up the gas tank :lol:.

LOL! More like 50% at todays gas prices.

The aforementioned family member decided to torch his car. Got caught and convicted of insurance fraud.

I wonder what % of people that try this get caught?

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LOL! More like 50% at todays gas prices.

The gas tank isn't that big so $40 is enough to fill it. Actually, Kelly Blue Book on my hooptie is around $1500 (private party value, good condition, suggested retail for it is around $2500). That's pretty good since I bought it for $1153 (total price including tax) 3 years ago. Nothing like a car that appreciates a couple hundred dollars from the time of purchase.

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The gas tank isn't that big so $40 is enough to fill it. Actually, Kelly Blue Book on my hooptie is around $1500 (private party value, good condition, suggested retail for it is around $2500). That's pretty good since I bought it for $1153 (total price including tax) 3 years ago. Nothing like a car that appreciates a couple hundred dollars from the time of purchase.

Stop describing MY ride!

97 Pontiac GrandAm...155K miles, free and clear for awhile now...filling up the tank increases it's value exponentially!

/threadjack

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Stop describing MY ride!

97 Pontiac GrandAm...155K miles, free and clear for awhile now...filling up the tank increases it's value exponentially!

/threadjack

This car has never been anything but free and clear. I put $300 down for them to hold it and came back two weeks later on payday and paid it off. I didn't think it would last three years, but I'm not complaining. At the time I was less than 8 months out of a repo, so there was no way in hell that I could get financed for anything. Well, not at a rate I was willing to pay.

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The problem is that under the new BK laws, if you make to much you can’t file CH7. And then there is the weighting period. A lot of people are upside down on their houses and not many people are buying right now at the current prices. Buyers can’t get financing and lenders want more than buyers want to pay.

Home owners would do better to just get an apartment and walk away.

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The problem is that under the new BK laws, if you make to much you can’t file CH7.

That is totally incorrect. If your debts exceed your income, no matter how high your income is, you can file chapter 7. The means test calculates all that out. What the new law does not let you do is file chapter 7 if you have more than approximately $150 a month in "disposable income" that could go to your creditors.

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