Comments on: Should I Walk Away from My Mortgage?

By: Kate

Kate — Sat, 31 Dec 2011 07:53:56 +0000

Well Kat I would take a different view, I would say there are was alot of greed from the banks and proper checks of customers income etc etc.
I myself purchased in the height of the market and put down a 90,000 deposit on a house which is now in negative equity. Does that make me greedy and wanting a better home for me and my family.

Thanks to Mr Cameron, the banks created the situation and yes they had a higher responsibility than the consumer. Where does Cameron put the money into again the BANKS!!!! i REST MY CASE

By: Lead by example

Lead by example — Mon, 08 Nov 2010 16:25:39 +0000

90% of the posts here speak to “moral obligations” and have personalized this situation to the point of a handshake deal. Unfortunately, we are not “shaking hands” with another person of similar moral character. We have all shaken the hands of big banking – which is about as far away from a moral person as one could get. “Boxofapples” got it correct in an earlier post. Banks (among other lending institutions) purchase much larger commercial properties at a much higher dollar amount than any of our homes, and they walk away from those deals all the time. I know, I am a commercial broker and see it all the time. So…let’s compare apples to apples here. If the person on the other side of the contract has the same moral belief structure that you share, then you can make the “moral argument” all day long and it would hold water. Not in this case I’m affraid. The lenders are out to make money and they could care less about you, your family, and whatever reasons you have to not pay. Why should you care so much about them? Get over yourselves and make the decesion that is right for you and your family – not the bank!

By: John

John — Fri, 23 Jul 2010 00:12:00 +0000

I have been reading these comments and i am still not sure as to what i should do in my current situation. I bought my house from my ex fiances parents. I spoke to her father in depth about the condition of the house and he told me that what i see is all that is wrong with the house. For example painting, some minor plumbing, and eventually exterior painting. On good faith and a tremendous amount of immaturity and inexperience i bought the house. The bank did not require an inspection and i have found there to be a tremendous amount of issues with this house. The furnace was from the 60′s and does not work, the roof has 5 holes in it and needs replacing, the plumbing is shot, and the electricity is WAY passed it time to be updated and causes me to lay awake at night planning escape routes for me and my children in case of a fire. I am on time with my mortgage payments but they will not work with me to get the money to fix this house. I spoke to a real estate agent to try to see if i could sell it and she told me i wouldnt get much because the house is not considered “liveable” and a bank would not mortgage it. Well the bank mortgaged it for me. I am seruously considering walking away from my mortgage because this house is not fit for my children and it was not what i signed a contract for. I bought a house not pieces of a house.

By: 6 Options When Facing Foreclosure

6 Options When Facing Foreclosure — Wed, 21 Jul 2010 11:36:52 +0000

[...] belongings and leave. It isn’t a pretty option, but a lot of people are choosing it. If you do decide to walk away from your home, at least have the decency to let your lender know the house is empty. The only question remaining [...]

By: Bill in NC

Bill in NC — Sun, 11 Jul 2010 17:04:42 +0000

How is any government lender going to know that your walk-away was voluntary as opposed to due to circumstances beyond your control like medical debt?

Any applicant can tell them a previous foreclosure was due to medical bills and the lender has no recourse but to take them at their word – they can’t legally demand to see medical records!

By: What Do I Need to Know About Camping?

What Do I Need to Know About Camping? — Thu, 08 Jul 2010 14:28:12 +0000

[...] Should I Walk Away from My Mortgage? [...]

By: Seven Things I Think I Think (and Personal Finance Links)

Seven Things I Think I Think (and Personal Finance Links) — Mon, 05 Jul 2010 20:53:33 +0000

[...] Frugal Dad asks should I walk away from my mortgage? [...]

By: Multiple Egg Baskets

Multiple Egg Baskets — Sat, 03 Jul 2010 03:03:19 +0000

Leaving your debts unpaid only raises the opportunity cost for risk. The market will have a way to stop your ability to gain credit and it will favour those that have good credit. The only problem is that it’s not fully on par.

By: almost there an

almost there an — Thu, 01 Jul 2010 19:48:34 +0000

If the state is a non recourse state, like California and Nevada, then it is just a business decision to walk away from an upside down mortgage. The loan paperwork said to the effect, pay the mortgage or surrender your house to the mortgage holder. That is what people are doing. Walking away and renting untill prices adjust downwards. I am glad I don’t have to deal with the housing mess as I am not selling my house in the near future.

By: Ella

Ella — Wed, 30 Jun 2010 23:55:56 +0000

We bought into the “buy now, don’t waste money on rent” mentality of 5 years ago! Biggest mistake of our life. An 80/20 loan, job relocation, second home signed for prior to closing the sale of the first and then that contract falling through….left us in a world of hurt!

Thankfully, fabulous renters and good jobs help us meet the mortgages of two houses. Even having just paid off the 20% on the first home, we are still upside down and without options unless we want to walk away. So, we’ll keep chipping away at it until we can qualify for a re-fi.

It hurts to see that money go flying out the door every month. But the lessons our family has learned about buckling down have been invaluable. We’ll never be that stupid again and we’ve stopped acting like we’re rich – cuz, we’re not.
It’s hard, but it’s the right thing to do. Thanks for your post.