Posts Tagged ‘strategic walk-away’

Walk Away (Renee) … an old song … now a new financial survival tactic ?

Saturday, January 9th, 2010

I’ve previously blogged in favor of toughing it out and not walking away from your  upside down/underwater mortgage  if you could afford to maintain your payment.   Been there, done that.  In my scenario, it was a hurricane that drove prices down for about five years, but they did come back to original levels and more.

An article in New York Times Magazine in the last few days somewhat said for some it was o.k. to abandon their mortgage commitment. I posted a good bit of that article yesterday because I agree  that everyone is unfairly putting this decision burden entirely on the shoulders of the Borrower. If Lenders have been given a big slice of the Stimulus Package Pie, why can’t they meet Borrowers half way or more, and modify their mortgages, specifically lower their interest rates ?

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