Good article. What people are forgetting is interest rates HAVE to go up the next couple years. 6.5% is historically a great rate and home owners can barely afford it now. Who's going to come in and buy houses when rates are 8-9%? - Most are out to save their own skins by walking away. Other than the moral issue of "you made a promise" why keep making payments on a house that you're 100K upside down on? You wouldn't do it if you owned a stock. There's even a company that opened to make a buck by helping people walk away www.walkawaysmart.com - Welcome to the modern economy. Gonna get worse, a lot worse, before it gets better.
November 23, 2008
Posted on May 1 at 2:20 p.m. (Suggest removal)
Good article. What people are forgetting is interest rates HAVE to go up the next couple years. 6.5% is historically a great rate and home owners can barely afford it now. Who's going to come in and buy houses when rates are 8-9%? - Most are out to save their own skins by walking away. Other than the moral issue of "you made a promise" why keep making payments on a house that you're 100K upside down on? You wouldn't do it if you owned a stock. There's even a company that opened to make a buck by helping people walk away www.walkawaysmart.com - Welcome to the modern economy. Gonna get worse, a lot worse, before it gets better.
On Local foreclosure rates soaring