More Home Owners Walk Away on Purpose

Real Estate Broker/Owner with Mills Realty
They are leaving the deal behind not because they can’t pay but because they don’t want to. A study by researchers at Northwestern University and the University of Chicago concludes that as many as 25 percent of defaults are driven by strategy, not necessity. I’m surprised that the percentage is not higher. The government is trying to help those that want to save their home but many do not want the help. When I was in Real Estate in Florida Buyers where paying crazy prices for homes and resold them months later for thousands more. Now that real estate has turned they are walking away. Many of these people made lots of money flipping properties for year but know are not willing to take a loss. That seems to be the American way perhaps the Government can come up with a way to subsidize them for their loss… Just Kidding!

Comments (3)

Associate Broker Falmouth MA Cape Cod Heath Coker - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

Some real estate people in other parts of the country say many walk aways are not doing it because of any strategy, but because of citizenship. Only 35 US counties have driven the mortgage mess.

Dec 22, 2009 11:59 PM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants


Here in San Diego many walk away due to a financial crisis. San Diego is a lovely place to live but  expensive. When homeowners are losing their jobs and all the people hear from the Governor, is that there will be more lay offs, due to budget problems. Also the local city officials paint a bleak picture, regarding employment it does not give the person trying to hang to his or her home a lot of hope, when jobs are scarce.

In some instances it takes courage to admit that the only solution is to let go.

Dec 23, 2009 12:04 AM
George Mills
Mills Realty - Asheville, NC
George Mills

Yes I understand and that is true here too. By the way my Sister is in Real Estate in your area Ruth Mills do you know her?

Dec 23, 2009 12:10 AM