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STRATEGIC DEFAULT DOES NOT SIT WELL WITH MAJORITY

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

Recently, an article appeared locally about people who walked away from an underwater asset. They had the means to continue to pay into this black hole of an investment. By "black hole" I mean that money put in will not come back even in the years to come. After much deliberation and sleepless nights and with financial counseling, they walked away

ITS AN INNER TAFFY PULL TO DECENT FOLKS

It was a difficult decision for these people to make and all the pros and cons in regards to it came up. It caused a taffy pull within ones self. One side of you says to keep your promises, stay your course and protect your credit. Another side pulls on you that says I will have nothing to show for it (equity) years later. Then what do I do?

THE REALITY STINGS EITHER WAY

The people who walked are decent people trying to make sense of it all. On the advice of Real Estate professionals and financial consultants, they were told to walk away. The advice consisted of facts, not moral judgments. Paying into something that will not recover or hold any value until then is throwing money away. In three short years, they can re-enter the housing market again

WHAT A MESS

No need to bring up the moral versus contract points of view nor the pre-agreed to remedy. One thing that we can all agree on is that no matter what side you take, both choices remain uncomfortable to say the least. Whatever one decides to do, may it go well for you

 

 

Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richie,

My view of strategic default has evolved. I'm now of the belief that the mortgage was secured by the house, and that's the only obligation the owner has to the bank. Here's your house back, I fulfilled my obligation under our agreement.

Banks have become evil in their greed in recent years. 

Rich

Oct 24, 2011 05:31 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Richie, I see people walking away who have no choice basically due to life circumstance. I also have seen someone want to walk away because they had a bigger house in mind...that is a choice but realize it is their choice, not mine to make. Banks do not care about individual circumstance, they just want their money.

Oct 24, 2011 05:52 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Richie to Rich...welcome into this new point of view...Rich, We do not have all the answers. In addition, this particular subject remains very personal. Self-preservation is an amazing thing....It has you doing things you normally would not do. It is not pleasant to behold sometimes, but necessary...each one has to obey their inner compass and voice...

Wanda...Money math runs the world. When we go to war, when you look and see what it costs, you start to want to find other solutions besides losing 1 billion dollars a day...Yes Wanda, it s money first and everything else second in the financial world

Oct 24, 2011 07:35 AM