Paddle or Swim for Shore?

So in my last blog, I spoke about the often agonizing decision homeowners are faced with in this down real estate market, and the dilemma of walking away from their homes. Good Morning America featured a revealing segment on the subject this morning February 11, 2010. Please click on the link below and watch.




I am not advocating this, but I think it's worthwhile sharing and to get your viewpoints on this.

Let's hear them!

Should I Stay or Should I Go?

Many borrowers are faced with the dilemma of whether to stay in their homes or walk away due to the fact that their homes are "under water" - a term used when a home is worth less that the mortgage on the home.

At first, I was wondering why would someone with a job, and having the ability to make his/her payments do such a thing knowing the consequences:
(i) a ruined credit rating; (ii) the foreclosure stays on your credit for seven years; and (iii) higher interest rates on purchases such as car insurance, etc.

Unfortunately, mortgage holders, banks in particular have not been forthcoming with loan modifications despite a national outcry regarding the urgent necessity to assist homeowners caught in this unfortunate situation. Without the ability to modify, a large number of homeowners are now seeing voluntary default as a viable option. Their hope is that by renting for a period, they can save enough money to put them in a better position to purchase when the market rebounds.