60 Minutes Story on “Strategic Defaults” in Real Estate – Walking Away is it Right?
Last night on 60 Minutes they had an interesting report on people who owe more money on their home mortgage than they could sell their house for. This is known as being “Underwater” on your home.
More and more people who are Underwater on their homes are choosing to walk away from their loans and homes in a Strategic Default.
This bothers me to no end. It’s simply dishonest & shows a lack of integrity. It is one thing if someone cannot pay their mortgage & has exhausted every effort to fix the situation. But to simply say “I don’t like the fact that I owe more than my house is worth, so I’m not going to pay on it anymore” is nothing short of theft.
There is no guarantee with real estate, like any investment. If someone can’t handle the possibility that they may lose equity, then they should simply rent. And if you buy a new car, the moment you drive it off the lot, you’re upside down in it. Should everyone just stop paying their car pmts because they don’t like being upside down?
Ugh, when did personal accountability become out of fashion?!?!
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This bothers me to no end. It’s simply dishonest & shows a lack of integrity. It is one thing if someone cannot pay their mortgage & has exhausted every effort to fix the situation. But to simply say “I don’t like the fact that I owe more than my house is worth, so I’m not going to pay on it anymore” is nothing short of theft.
There is no guarantee with real estate, like any investment. If someone can’t handle the possibility that they may lose equity, then they should simply rent. And if you buy a new car, the moment you drive it off the lot, you’re upside down in it. Should everyone just stop paying their car pmts because they don’t like being upside down?
Ugh, when did personal accountability become out of fashion?!?!