Comments on: When (if ever) Should You Walk Away From a Mortgage

By: David

David — Thu, 04 Mar 2010 20:41:02 +0000

This is very informative. I bought my house for $1.1million and the house next door (exact replica and size) just sold for $750 and another sold a few months earlier for $680. It would probably take 25-30 years to break even. Not economically sound to stay in the house

By: Sue

Sue — Fri, 18 Dec 2009 00:58:49 +0000

I have read a book about Gov’t Grants and I hope it could help those who are having problems financially or those who want to put up a business in the future. It’s very helpful. It’s called:
How to start or grow business using government grant money – Directory of grant funding programs

By: SingleGuyMoney

SingleGuyMoney — Mon, 14 Dec 2009 23:03:30 +0000

You signed the contract, you can afford the home, you owe the money. Keep making your payments. Your home is a place to live and unless you need to sell suddenly, it doesn’t matter that you are underwater. Housing values will come back eventually. Hang in there and keep making those payments.

By: Edwin

Edwin — Mon, 14 Dec 2009 00:28:40 +0000

You brought up a lot of things to consider for someone who is in such a situations. One thing that strikes me is its a no-down ARM. I’d be interested to see not only the difference between what is owed and the current value but also the rates and payments he may have to deal with. ARMs could easily bring the payments to a very unaffordable level for him which is something else to take into account when making the decision to walk away.

By: Smac20

Smac20 — Fri, 11 Dec 2009 21:13:38 +0000

Very informative article.

I think if you are only underwater by $25,000 this is not a major milestone and you should likely just hold on. The ramifications from walking away can be much greater than you are aware. Even if you are underwater you need to consider how being delinquent is going to prevent any future banks from dealing with you in the future. Your credit score will be damaged for many years so if you think you’re out of the real estate market for 10 years and won’t need any loans for 10 years it may be in your best interest to walk, but 10 years is a long time to forecast.