There is an increasing number of house owners in this distressed housing industry that are defiantly refusing to pay for their mortgage and in essence thumbing their noses at the financial companies holding their home loans. The shame of foreclosure along with the unwillingness to pay what they contractually owe is no longer an encumbrance these house owners care to bear which is shocking to the majority of St Louis mortgage consumers. There are thousands who by not making their house payment are using these misappropriated funds for making expensive purchases or by paying down new credit card debts due to their spend thrift nature. Thus, their loose financial conduct and reckless spending can now be fed at the expense of their banker. In fact, it has become a diabolical game of 'catch me if possible because until then I ain't leaving.' It seems the problem is due to the fact that these disillusioned borrowers think that the banks or lenders are entirely accountable for what has happened in the housing industry. Thus, they feel no moral responsibility to nor feel accountable to finish paying their loans. Now, this is not to state that there were not thousands and thousands of home owners who were lied to or taken advantage of during the St Louis finance and lending process not to forget people that lost their jobs through no fault of their own. However in all fairness, just like many Americans who bought houses in the last five years committed absolutely nothing less than fraud on their 'stated income' lending applications or greedily purchased too much house on their small budget knowing full well they must never have bought so costly home. Recent data show that official foreclosure procedures have been initiated against almost 2000000 households. And the ability to slow these serious lending problems seems difficult. Another issue that borrowers and mortgage servicers will be facing are legal obstacles like foreclosure moratoriums. This doesn't even account for the increasing level of pressure being handed out on Capitol Hill to not just provide more loan modifications but in turn graduate these trial solutions into permanent new loans. Yet another problem that economists are noticing is the incapability and also the outright refusal of lenders wanting to deal with numerous national and St Louis home loans that are in default. But it now is sensible as to the thinking of a debtor. Why pay their mortgage when the average consumer was late on their house payment for 438 days before being evicted as outlined by LPS Applied Analytics. The St Louis Refinancing Group news team and numerous real estate experts state that the number of those people who are overextended and consider living 'rent free' as it were growing at an incredible rate. And if that wasn't bad enough, new reports are showing that around 650000 homeowners have not made a single loan repayment in over 547 days. Folks, that is around 18 months. With political and consumer anger over the problem of home owners who are able to pay their home loan but refuse to do so may be coming to an eventual end. There is legislation being proposed in Washington that would keep these freeloaders from using government sponsored funds when investing in a future home. |