Tuesday, October 27, 2009

Homeowners Moving Away

Posted By Pete Hill

A RECENT study suggests that most homeowners have qualms about abandoning a mortgage that they can afford to pay, even if it straps them to an investment that’s unlikely to pay off anytime soon.

But if the house has lost significant value, or if many neighbors walk away from their mortgages, the study says, “strategic defaults” are significantly more likely.

It is an increasingly common question facing homeowners, many of whom have seen their properties lose large amounts of equity in recent years: would you give up a home that is considered to be “underwater” even if you could still afford the monthly payments?

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1 comment:

  1. This is very interesting and the question posed at the end would be difficult to answer to many people.

    -Lindsey Connell