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Old 09-18-2010, 01:47 PM   #41
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I would try to negotiate a settlement with the second lender for 10-30% of the value of the loan. One of my friends did this when the house he bought was way under water (130k+) and since the value of the house was less than the first loan, the second lender wouldn't get anything from a short sale and they were willing to negotiate a settlement.

Now my friend is staying in the house since he's just slightly underwater (less than 20-30k). If it's able to work, seems like a reasonable option.
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Old 09-18-2010, 05:13 PM   #42
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Excuse me if this was already asked but is the $200K all in retirement accounts ? If not why not just pay off the second mortgage to give you some breathing room during the job change ?
All savings, aside for a 1 month emergency fund, is in tax advantaged accounts (Roths or 401k or rollover IRA).
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Old 09-19-2010, 12:15 AM   #43
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regardless of what you taught.

In my book if you default on a loan you promised to pay back just cause' you see a better deal makes you a slimebag in my book.

And just cause' someone else did something slimy doesn't make you any less so.
The interesting thing to me is that so many of us have our own personal books on things like this, which books are non-congruent with the only governing thing, the applicable law. Which as any American knows is a very flexible concept anyway.

Say someone had his own book, which in this hypothetical case was less restrictive on the borrower, rather than more so. Would the bank care what one's personal book said about the matter? Somehow I doubt it. When I find that "my book" diverges from law and custom I at least suspect that my book has gotten out of sync with the book kept by my society at large, and enforced by courts, police, etc.

There is no shame in trying to renegotiate anything. If you are successful you can bet that your counterparty sees this negotiated solution as a better outcome for him than a probability weighted average of the outcomes that might follow if the negotiation failed.

Ha
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Old 09-19-2010, 12:34 AM   #44
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I would try to negotiate a settlement with the second lender for 10-30% of the value of the loan. One of my friends did this when the house he bought was way under water (130k+) and since the value of the house was less than the first loan, the second lender wouldn't get anything from a short sale and they were willing to negotiate a settlement.

Now my friend is staying in the house since he's just slightly underwater (less than 20-30k). If it's able to work, seems like a reasonable option.

If you really are going to stay in the house long term and have no need for a good credit rating then this could work. But, if you need good credit then this won't work very well.
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Old 09-19-2010, 12:39 AM   #45
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Corporations try to inculcate naive children with this belief.
It makes it so much easier to screw them as customers and employees

What do you call overbooking by airlines? you sell the same seat to two people?

You realize that in most of the world workers have real contracts. Companies in the USA preach loyalty and sell employees down the river at the first chance.
Teams fire coaches and pay them off. Coaches also walk
That is the real world.

I fully agree that in a situation where promises are truly mutual and both people feel the same way it is a different story.
To answer your first question.... because there are a LOT of people who book flights and do not show up for them... the airlines know this so they overbook with knowledge of about how many will not show up...

I am not a big flier, but do have over 250K miles... in that time there were only two flights that where they asked someone if they wanted to take another flight... one was the day before Thanksgiving... it was way overbooked... the other had only one seat overbooked... but someone that had a boarding pass did not show up so in the end it was not overbooked. (the lady who took the money got to keep it and also got on the plane)...

There is no penalty if you buy a full price fare to not showing up...
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Old 09-19-2010, 01:32 AM   #46
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I am not a big flier, but do have over 250K miles... in that time there were only two flights that where they asked someone if they wanted to take another flight.
Wow. I think you must be a 3+ std dev outlier I regularly see overbooked flights all time.

What I find extremely annoying is when the airline will cancel your flight just because there were too few passengers, but if you want to fly standby on an earlier flight with empty seats they try to charge you.
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Old 09-19-2010, 05:27 AM   #47
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To answer your first question.... because there are a LOT of people who book flights and do not show up for them... the airlines know this so they overbook with knowledge of about how many will not show up...

I am not a big flier, but do have over 250K miles... in that time there were only two flights that where they asked someone if they wanted to take another flight... one was the day before Thanksgiving... it was way overbooked... the other had only one seat overbooked... but someone that had a boarding pass did not show up so in the end it was not overbooked. (the lady who took the money got to keep it and also got on the plane)...

There is no penalty if you buy a full price fare to not showing up...
They sell the same seat to two people and cannot fly them both. Its contract law and a well paid off government makes the damages they have to pay very low so they do it.
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Old 09-19-2010, 11:50 AM   #48
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They sell the same seat to two people and cannot fly them both. Its contract law and a well paid off government makes the damages they have to pay very low so they do it.
Just for a little balance, allow me to re-phrase that:


Quote:
They sell the same seat to two people and cannot fly them both. Its contract law and government representatives on the take make the damages they have to pay very low so they do it.
It takes two to Tango.

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Old 09-19-2010, 01:38 PM   #49
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I wrote " a well paid off government" and you wrote "government representatives on the take" and suggested your formulation was more balanced.

my comment referred to campaign contributions and other similar influence peddling.
If that it what you mean I agree.
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Old 09-19-2010, 02:17 PM   #50
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I wrote " a well paid off government" and you wrote "government representatives on the take" and suggested your formulation was more balanced.

my comment referred to campaign contributions and other similar influence peddling.
If that it what you mean I agree.
What I meant was that the two together provide balance. Yes, there is influence peddling, but there is also the acceptance of that peddling. Still takes two to Tango.

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Old 09-19-2010, 05:58 PM   #51
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We certainly have the best government money can buy. Watch the money flow to keep the government from stopping the for profit trade schools from using government loans to pay for pointless education that leads nowhere. For-Profit Schools Donate to Lawmakers Opposing New Financial Aid Rules - ProPublica
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