Should you walk away from your mortgage? What impact will walking away have on you? Steve Fleming mentions four points in this video. What do you think? There are many different opinions on this matter? Do you agree or disagree with the content of this video?
From YouTube: “Steve Fleming, President & CEO of River City Bank, answers the most prevalent questions regarding banking and the economy. Gain insight and information about what’s happening on Wall Street and what it means to all of us here in the Sacramento region.”
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I generally agree with the video. I think that people have an obligation to continue to pay their mortgage and stay in their home IF they are able to do so. Walking away just because you are upside down is not ok. Of course changes in job and financial situation that would force a person to sell and move during a normal market may result in a short sale or foreclosure in this market. My home lost 50% of it’s value and due to unemployment followed by a new job which paid much less, I am no longer able to make my payment. However, if my lender will grant me an appropriate modification, I am willing to stay in the home and not walk away.
I hear you. I think the video was safe in that it gave a context for someone who could still afford their home, but was just “under water” so to speak. It seems best to avoid going to bankruptcy and foreclosure and exhaust all possible solutions first.
Best wishes to you. Sorry to hear your of your situation. I hope your lender listens to you.
There is definitely a time and place to let a house go, and I think that can actually be the best choice in certain situations. After a while, it does not make sense to deplete one’s life savings (which is also a source to provide for the family) just to hold on to a house you really can no longer afford. If the ship is sinking, it’s not wise to stay aboard, especially at the expense of caring for family.
What a difficult decision though. My guess is that almost everyone knows someone who has gone through either foreclosure or a short sale. Our market has been saturated with people struggling in this way. It’s not been an easy time.