In a periodic survey by foreclosure data company RealtyTrac and property search site Trulia.com, more than half of homeowners with a mortgage say they would not walk away from their home if it were underwater (they owed more than the home was worth). The rest would consider walking away, but only 1 percent said it would be their first option. About 69 percent of homeowners in the survey said they would try to get their loans modified first.
The government's Home Affordable Modification Program has had a limitied effect on the rate of homes going into foreclosure, according to Trulia CEO and co-founder Pete Flint. And while the stigma of purchasing a foreclosure has decreased some, it still remains high. Among homeowners, 40 percent said they would consider buying a foreclosure, down from 49 percent a year ago.
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