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There is a growing number of home owners in this distressed housing business that are defiantly refusing to pay for their mortgage and in essence thumbing their noses at the financial companies holding their house loans.
The shame of foreclosure with the unwillingness to pay what they contractually owe is no more an encumbrance these house owners care to deal with which is shocking to many St Louis mortgage consumers.
There are thousands who by not making their house payment are using these misappropriated funds to make luxurious purchases or by paying down new credit card debts because of their spend thrift nature.
Hence, their loose financial conduct and reckless spending can now be fed at the expense of their banker. In reality, it has become a diabolical game of 'catch me if you're able to because until then I ain't leaving.'
It seems the problem stems from the fact that these disillusioned borrowers think that the banks or creditors are entirely accountable for what has happened in the housing industry. Thus, they feel no moral responsibility to nor feel accountable to finish paying back their loans.
Now, this is not to say that there were not thousands and thousands of house owners who were lied to or rooked during the St Louis finance and lending process not to forget people who lost their jobs through no fault of their own.
However in all fairness, just as a number of Americans that bought houses in the last five years committed nothing less than fraud on their 'stated income' lending applications or greedily bought too much house on their small budget knowing full well they should never have invested in such a costly house.
Recent data signifies that official foreclosure procedures have been initiated against almost 2000000 households. And the ability to slow these serious lending problems seems difficult.
One other issue that borrowers and mortgage servicers will be facing are legal obstacles such as foreclosure moratoriums.
This doesn't even account for the growing amount of pressure being handed out on Capitol Hill to not only offer 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 even the outright refusal of lenders wanting to manage so many national and St Louis home loans which are in default.
However it now is sensible as to the thinking of a buyer. Why pay their mortgage when the average consumer was late on their house payment for 438 days before being evicted as per LPS Applied Analytics.
The St Louis Refinancing Group news team and various real estate experts state that the number of those persons who are overextended and plan on living 'rent free' as it were growing at a remarkable rate.
And if that wasn't bad enough, new reports are showing that around 650000 homeowners have not made a single mortgage payment in over 547 days. Folks, that is approximately 18 months.
With political and consumer anger over the problem of home owners who are able to pay their house 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 making use of government sponsored funds when buying a future house..
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