Read It Here First: You Walk Away.com
One month ago today, our site-of-the-day was You Walk Away Dot Com.
Today, there is a front page NYTimes article about -- anyone? anyone? -- You Walk Away.com:
"Then in January he learned about a new company in San Diego called You Walk Away that does just what its name says. For $995, it helps people walk away from their homes, ceding them to the banks in foreclosure...
You Walk Away is a small sign of broad changes in the way many Americans look at housing. In an era in which new types of loans allowed many home buyers to move in with little or no down payment, and to cash out any equity by refinancing, the meaning of homeownership and foreclosure have changed, economists and housing experts say...
Though many states give banks recourse to sue borrowers for their losses, Mr. Case said, in practice it’s not often done “It’s tough to do recourse,” he said. “It’s costly, and the amount of people’s nonhousing wealth tends to be pretty slim...”
The company assured him that in California he was not liable for his debt, and provided sessions with a lawyer and an accountant, as well as enrollment with a credit repair agency. He stopped paying his mortgage and used the money to pay down other debts." (emphasis added)
Just doin' our job, keeping you informed a solid month ahead of the mass media.
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Previously:
You Walk Away Dot Com.
http://bigpicture.typepad.com/comments/2008/01/site-of-the-day.html
Source:
Facing Default, Some Walk Out on New Homes
JOHN LELAND
NYT, February 29, 2008
http://www.nytimes.com/2008/02/29/us/29walks.html
Friday, February 29, 2008 | 10:36 AM | Permalink
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Comments
You are quite right. The blog Calculated Risk pointed this out long ago, too - in the comments there seemed to be mild shock (that consumers would not live up to a contract) and consensus that folks would start to make "business decisions" w/r/t housing.
A tangent to this is to see if consumers begin to shun debt and credit spending as well. Me tinks soo.
With this new social attitude of walking away is okay, and tighter lending - aka Wells Fargo placing almost all of CA on the Sever Distress catagory [no lending for LTV greater than 75%] will accelerate the downturn. Question: Parabolic usually means an upward monmentum can it be downward as well?
Posted by: Barley | Feb 29, 2008 10:48:09 AM
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