Due to the current real estate climate many homeowners owe more on their homes than the current market value; or are 'underwater'. What is the benefit of continuing to pay on a loan that is considered a 'bad debt'? Some would say none as it does not appear to make economic sense. However, there
is more to it than just the current mathmetics of the subject. Regarding homeownership there is more of an attachment to the product than just the financial investment. Residential property is also home and the place of memories from family gatherings. Additionally the real estate market has it's ebbs and flows and the tide will eventually turn. Since equity is not a liquid asset money is not lost when it disapates UNLESS
the property is sold. Therefore if an owner is not in a position to require selling it is a good time to sit tight. It is a good time to utilize toward preventative maintenance and a good time to avoid throwing the baby out with the bathwater. Additionally, by continuing your personal responsible behavior, you are doing your part to stablize the real estate market.
Linda Landry REALTOR ® Exit Realty 1st Choice Tucson, Arizona