Presented By the Real Estate Home PageHomeowners who have lost value on their homes are stopping payment on their loans in increasing numbers.
The farther home owners' equity falls below the value of their homes, the more likely they are to default on their mortgages.
As the social stigma of defaulting lessens, it is likely that more and more homeowners will walk away from their home loans, even if they are able to pay them.
Willingness to default on a home loan, even though you can afford to pay it, has become known as "strategic foreclosure".
But, don't even think about trying this without considering the consequences, including the possibility that your mortgage company might pursue criminal charges against you for violating Federal law.
If you haven't talked with your attorney for awhile, this would be a good time to re-introduce yourself and get some legal advice!
Sooo...is walking away from your mortgage justified or is it morally wrong? Northwestern University and the University of Chicago did a study. They found out how people with different demographics feel about the morality of defaulting on a home loan, even when they can afford to pay it.
Click here to see who thinks it's morally wrong and who doesn't:
http://www.realtor.org/RMODaily.nsf/pages/News2009070105?OpenDocument
Kwik Kwote: "Learn from yesterday, live for today, hope for tomorrow." Albert Einstein
To see homes in the Cary-Apex-Holly Springs, NC area, take a look at http://www.TriangleEstatesRealty.com/. Or email me at Tim@TimHaag.com. Or for a no pressure toll-free chat, call me at 877-TIM-HAAG (846-4224).
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