With housing prices on the decline and defaults on the rise, more and more people are walking away from their mortgage, not as a last ditch effort, but more as a first option.

It seems that the stigma of being foreclosed on is quickly dissipating as more and more homeowners are making the decision of strategic default, treating the process of foreclosure more as a business deal instead of a personal obligation. And it seems that the consequences of foreclosure may be slacking as well. There are companies out there that actually guide people through a strategic default. I guess this is another way of sticking it to those evil banks that loan people money to buy a home.

I have been in the real estate business as a foreclosure agent for over seven years. I have talked to many people, both borrowers and tenants, who have lost homes to foreclosure. There are many legitimate reasons as to why someone  my lose their home. I have had to console people as they share their story and it can be heartbreaking. As hard as they tried, they just couldn't make it work. They deserve a second chance.

But I have little empathy for someone who just walks away because their home value declined or got tired of paying the mortgage. They are not the only ones affected by their decision. Their neighbors, the banks, the community and every future home buyer and seller could suffer direct or indirect consequences of that action. If you are facing default, there are programs that can help. I would urge you to check those out before deciding to walk away.

 

http://moneyland.time.com/2011/11/09/after-walking-away-from-a-mortgage-no-regrets—not-many-consequences-either/

 

 

 

 

2 Comments on Foreclosure No Longer a Stigma

NOV
27
2011
2 Featured Posts Outside Blog

well said, Nick......i think we're just at the tip of the iceberg, for more and more distressed properties are predicted in 2012. As this situation lingers on...we're going to see all kinds of innovative diversions to the process. Real Estate industry is rapidly changing. We can see that right in front of us now. No telling , how its going to look a year or two from now...i have a feeling....drastic changes are coming !  Thanks for your thoughts.
10:36am • #1
145,762 Points 17 Featured Posts Called Shot Master

Nick-Well put, strategic foreclosures are making any type of recovery that more difficult. I'm not sure why people think it's OK to "JUST" walk-away from their responsibility, but as they say "it is what it is."
10:46am • #2


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Nick Miller

Jackson, MS

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Coldwell Banker Graham & Assoc.

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