How many people are walking away from their mortgages as a business decision as...

M

Mimi

New member
...opposed to? walking away because they can't afford the payment? Do you think these types of foreclosures are on the rise?
I have read about people doing this and I think more people will do it, especially people with no equity and the people who put very little, if any, down to buy.
They might not be any better off with a short sale than a foreclosure, because they can just live in the house several months for free.
I rented one of my properties to someone with a foreclosure on their credit report and they have been good tenants so far
 
Most people fall behind on their payments, or they would simply sell their homes. They risk the possibility of paying a deficiency if they simply walk away, even though it isn't common.
 
I think some of that went on in the early days of the housing bust, particularly, I think investors and builders did it. People who have mortgages on their own residences probably are not doing it. You have to live somewhere and even renters get their credit checked, after all.
 
I don't personally know anyone who's done this, but it's pretty idiotic. They're messing up their own credit and risking being sued for the difference in their loan balance and what the home auctions for. They're also perpetuating an already screwed up situation. They should be ashamed of themselves.
 
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