An interesting article in today’s LA Times describes how paying on an underwater mortgage may create more problems than it solves. And while we often speak of the moral hazard of “strategic default,” there are also hazards to staying and paying.
If we honestly analyze the consequences, we may realize that ignoring the problem of negative equity harms all of us and only hampers our chances at recovery. In another POST I describe a possible solution and why negative equity must be addressed.
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