Gruss Gott wrote: > And here's the new wrinkle: for decades the consumer home has been > considered one of the safest credit risks. No longer. > > And you're just starting to see why: people are starting to simply > walk away from property they are no longer willing to make the > payments on. > > Note the use of the word "willing" and not "need".
And are actually being advised to do this. This was an interesting factoid from a news story a few weeks ago. There could be little consequence to many of these home owners to walk away and much financial incentive to do so. One financed the house 100%, there is no equity in it, the mortgage payment has tripled and the value has fallen by a third or more. What is the financial incentive to stay, moral maybe, emotional possible, but financial? A foreclosure on ones credit history is probably only going to be a factor for a couple of years, much less then a bankruptcy. Especially for the ones who got in before the bust and got a 100% refinance in before the collapse and pulled out $20 to $50 thousand (here in the Sacramento, CA area). They got their money and maybe can easily run. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:255396 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
