My response to Barbara-Jos post got too long. I agree it is a difficult decision for some many.
I can see where some may be working now and doing fine but will be forever under water until they reach their 70s or so when the income will be less.
If one can afford to pay now should they take all their income and pay and go into "older" age with even less?
This is a challenging time for many. Affordability today may not be affordability in 5 years so are they being responsible to walk now?
There are so many questions and situations...Life and its decisions are not easy!
This is something I come across all too often - a homeowner is upside down on a home or condo that they purchased (and are using as an income producing investment) and they decide to do a short sale and walk away! It should NOT be allowed!
If you cannot make the payments and are over your head, that is one thing. I have come across the situation all too often that the short sale is because the homeowner wants to dump the property because it is so far upside down that they know it won't balance out again in this lifetime - so they walk!
There has to be regulation and people who CAN afford to make the payments but simply don't WANT TO make them should NOT be allowed to do a short sale! Where is financial responsibility? You made a bad decision, live with it and take the loss like so many Americans are doing!
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ICH SPRECHE DEUTSCH!!!
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I'm not sure but I think that a bank can go after the difference that a foreclosure brings in vs. what was owed by the seller when they walked if it is an investment property??? I kow the mortgage foreclosre law protects primary home owners. If this isn't the case then there should be regulations placed to allow the banks to go after those funds (as much I hate what the banks have done!)!
Thanks for the reblog! I really think those that have multiple investment properties should not be allowed to do short sales - let them do foreclosures, but short sales????
John - Investors, in my opinion, should be treated differently than primary residential borrowers. Thanks.
Barbara-Jo - Multi investors, I agree. Thanks for getting me thinking this morning!
Gary,
No easy or "one size fits all" answers to these situations! I'm getting contacted by more & more folks considering this.
Irene - Difficult choices. I guess that is life. Good thing there are those who are willing to help!
Hi Gary! I am one of those who is in this exact situation--we bought at the PEAK of the market and are down over $100K on our personal home--not to mention another investment property. My concern--if we can afford to pay and we walk--along with everyone else in our boat, where is THAT going to leave us? It's a difficult decision but, for now, as long as I can pay, we're stayin! I think we'll see a rebound in about 5 years and I'm just as happy as I can be right here!
Hope you have a wonderful Wednesday...
Debe - Thanks. I, as well, find myself in a similar situation. It may take a while but things will turn around.
Gary, I understand Barbara Jo's perspective -it can seem frustrating and unfair. This is a hot topic that could be debated all day long! I don't think there is a right or wrong answer to this one - it depends on the situation - but you can't allow it for some and not others. This debate can move straight into the controversy about strategic defaults. What are we going to do?
Sandy -It would be nice if we had do-over buttons for this. There is no easy answer for sure. Thanks. Enjoy your Florida weekend!
We come into this world with nothing and we leave it the same way. Win some, lose some. We should look at the whole picture, not just one part. We need to roll with the punches.
Kenneth - I like your position. Roll with the punches, live to fight another battle. Today's battle - the heat!
I have no reason with someone walking away from their home because there is a contract in place that defines what will happen, and that contract states that the bank will take the home. It's a give and take.
Jim - Your logic is refreshing!