With housing prices on the decline and defaults on the rise, more and more people are walking away from their mortgage, not as a last ditch effort, but more as a first option.
It seems that the stigma of being foreclosed on is quickly dissipating as more and more homeowners are making the decision of strategic default, treating the process of foreclosure more as a business deal instead of a personal obligation. And it seems that the consequences of foreclosure may be slacking as well. There are companies out there that actually guide people through a strategic default. I guess this is another way of sticking it to those evil banks that loan people money to buy a home.
I have been in the real estate business as a foreclosure agent for over seven years. I have talked to many people, both borrowers and tenants, who have lost homes to foreclosure. There are many legitimate reasons as to why someone my lose their home. I have had to console people as they share their story and it can be heartbreaking. As hard as they tried, they just couldn't make it work. They deserve a second chance.
But I have little empathy for someone who just walks away because their home value declined or got tired of paying the mortgage. They are not the only ones affected by their decision. Their neighbors, the banks, the community and every future home buyer and seller could suffer direct or indirect consequences of that action. If you are facing default, there are programs that can help. I would urge you to check those out before deciding to walk away.
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