Comments on: Underwater mortgages, jingle mail, and walking away from a bad investment

By: Walk Away From Your Underwater Home aka Jingle Mail

Walk Away From Your Underwater Home aka Jingle Mail — Sat, 27 Feb 2010 08:20:04 +0000

[...] blogged about this in my Jingle Mail post awhile back and still hold the same belief. Take care of your family first and put your [...]

By: Strategic Default: Morgan Stanley Gives Properties Back to the Lender

Strategic Default: Morgan Stanley Gives Properties Back to the Lender — Sun, 27 Dec 2009 20:35:04 +0000

[...] (Some say we’ve over-discussed it.) If it’s immoral, as some would say, for a borrower to walk away their mortgage, is it any different for a [...]

By: Lin

Lin — Wed, 24 Jun 2009 21:49:49 +0000

The only people helped are the ones that put zero money in the house and have the greatest chance of walking away. ( meaning zero down and borrowed everything) These people can hurt the investors and banks, but those that did their loans ” old school ” ( 20% down, 30 year fixed ) won’t hurt the banks and investors since the houses were inflated with false appraisals in many cases. Our goverment is corrupt and only cares about the oversees investors and the banks.

By: Kate

Kate — Fri, 01 May 2009 20:05:51 +0000

the question is this: if you simply miss 3 payments – and walk away from your mortgage commitment, you completely screw up your credit. How in the world are you going to BUY another home? No one will touch you, will they?

By: Phil

Phil — Mon, 20 Apr 2009 17:00:28 +0000

I agree with your comments, and Im in the same situation as your examples with my house. But if I dont pay for three months does that kill my credit?

By: Danella

Danella — Sat, 11 Apr 2009 06:00:08 +0000

I can’t believe no one has commented yet. You expressed exactly how I’m feeling. The responsible people get no breaks!

I have a 5 year ARM that will explode in May 2010. I tried to refinance and paid for an appraisal. I’m 85K under water and to refinance I would have to come up with 100K minimum to get to a 95 percent LTV, which I could if I liquidate most all my assets. Then I have to pay PMI which I can’t deduct as I would have to earn under 50K. So I’ve been researching what happens if I buy a new home and walk away from this one. It seems no one can really tell me what will happen due to the different types of forclosure and it’s likely I would have a large taxble event and I’ve been weighing that out to see if it’s worth it.

It’s so frustrating to see so many people getting help and only if I stop making payments will I even be talked to and since I have no hardship currently I’m stuck. I know people who are intentionally not making payments just to get a lenders attention.

Walking away or not making payments really goes against my grain but I’m so sick and tired of not qualifying for any program. Having said all that, I am happy to have a job and to be able to afford my payments. I will probably even be able to afford what happens in May 2010 but I’ll be financially punished with a crazy adjustable interest rate next year when it very unlikely that values will not improve to the degree that I can refinance.

With my luck that will about the time the government decides to limit the amount of mortgage interest deductible on my tax return.

I agree with your comments 100%