If you were "upside down" on your mortgage, would you walk away? (financial, state)

[Recovering Democrat]

If a homeowner owes more on their mortage than the home is currently worth, say

Mortgage: $200,000
Value: $100,000
Under water: $100,000

Would it be wrong for him/her to stop making payments and walk away?

[MIKEETC]

Originally Posted by Recovering Democrat

If a homeowner owes more on their mortage than the home is currently worth, say

Mortgage: $200,000
Value: $100,000
Under water: $100,000

Would it be wrong for him/her to stop making payments and walk away?

You've almost described me. The answer is, "Yes."

[malamute]

How would you get that underwater?

I guess you would get to keep all the lavish vacations and meals out and designer clothes and other luxuries you bought with all the second mortages you took out.

I can't really answer that question because I wouldn't use my home like an ATM to get underwater with my mortgage in the first place.

[Savoir Faire]

Shouldn't this be in the real estate forum?

[Roaddog]

Many people have no choice because they can't make the payment, I personaly know a family who owe $700,000.00 on a house worth $350,000.00 they will either walk away or loose it.
Many folks who are upside down but can afford it wont walk away and I know a few like that (quite a few)

[The Greek]

Originally Posted by malamute

How would you get that underwater?

I guess you would get to keep all the lavish vacations and meals out and designer clothes and other luxuries you bought with all the second mortages you took out.

I can't really answer that question because I wouldn't use my home like an ATM to get underwater with my mortgage in the first place.

No No No, If I bought a hose for 300k 4 years ago and put down 10%. You owe 270k now and it's worth 180k 4 years later...Is it worth paying mortgage on a 300k house that is worth 180k now. The question has nothing to do with spending.

[Gary Siete]

If you walk away where will you go? If your new rent is close to your mortgage & tax payments then isn't it better to stay where you are?

[texdav]

I thnik I would have to consider that with the proposed changes in mortgages by the governamnt gettig out fo guarnateeeing mortgages and it going private whcih even this administration is pronmoting it maybe the only house you might ecer own really. If I were to the point hat it would bankrupt me to pay the payments i agreed to then I would rather go that route.Perosanlly i thnik having walked away could be a bad optio for the future.Its each persons choice tho if they are in a stae where it can be done with no 1099 etc.

[McBain II]

Originally Posted by Recovering Democrat

Would it be wrong for him/her to stop making payments and walk away?

No, it would not be wrong. People need to do what is best for their financial future.

[MIKEETC]

Originally Posted by Roaddog

Many people have no choice because they can't make the payment, I personaly know a family who owe $700,000.00 on a house worth $350,000.00 they will either walk away or loose it.
Many folks who are upside down but can afford it wont walk away and I know a few like that (quite a few)

There's a difference between being unable to make the payment and unwilling to make the payment. And, saying that they will either walk away or lose it is saying the same thing. Walking away is losing it.