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Is it okay to walk away from a mortgage you can afford to pay because your home is now worth less than you owe the bank?

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limitedtime

Asked by limitedtime at 8:36 AM on May. 5, 2009 in Money & Work

Level 3 (27 Credits)
Answers (18)
  • No, its not okay. Your home will get it's value back. It may take a few years but it will be back and probably worth even more that what you bought it for. So if you can afford your mortgage the pay it, it will pay off in the long run.
    AnnHenderson

    Answer by AnnHenderson at 8:39 AM on May. 5, 2009

  • Check with your financial adviser, but I suspect your credit rating would be trashed.
    Bmat

    Answer by Bmat at 8:41 AM on May. 5, 2009

  • I would be trashed. I would look like a foreclosure. It's not a wise decision.

    AnnHenderson

    Answer by AnnHenderson at 9:01 AM on May. 5, 2009

  • If you can afford to pay the payments it is better to keep paying it. If you don't and let it go back, it will ruin your credit and be almost impossible to get another home or anything for that matter. Eventually the market will come back. However if you can't afford the payments then that is different. You can't get blood from a turnip. So you can't pay money you don't have. If that is the case then let it go and don't worry about it. It is what you had to do at the time. It wiLL take a while to recover but you can only do what you can do. But if your only reason is because the home isn't worth as much as you owe, don't look at it that way. Neither is mine. Values will eventually come back.
    Anonymous

    Answer by Anonymous at 9:04 AM on May. 5, 2009

  • It's much better to stay and pay. It's somewhat dishonest to walk away from a mortgage you can afford; you DID agree to pay it, and you wanted that house when you bought it. It's still the same house, regardless of value. Don't ruin your credit, that will cost you A LOT more in the long run.
    Anonymous

    Answer by Anonymous at 9:31 AM on May. 5, 2009

  • No......I try not to judge harshly because no one can know someones personal situation....having said that..;) It is selfish, greedy, and the exact "American" attitude that got us into this situation in the first place. It is not right to just walk away from a problem, not for us, CEOs or anyone else. The value of homes will come back...good luck and be honest.
    bolz08

    Answer by bolz08 at 9:45 AM on May. 5, 2009

  • Today Show contributor, Barbara Corchran, practically condoned it this morning. She said the stigma of foreclosure was gone now and that it was an understandable decision, especially since the tax consequences no longer exist either. It made me angry as a neighbor and a tax payer. My mortgage isn't in question here. I was looking for opinions. My personal opinion is that it is morally and ethically wrong. A lot of these people bought their homes at reasonable prices. They then refinanced them when the values rose in order to purchase toys that they still own or to pay off other debt that they would still have and not be able to just walk away from so easily.

    limitedtime

    Answer by limitedtime at 9:51 AM on May. 5, 2009

  • Why would you do that? Home prices will go back up just like those of us who have lost money in the market will recoop those losses. Home prices were inflated way too high and it was about time they came down so the middle class could afford them. Keep your house if you walk away you will destroy your credit and frankly add to the problem.
    Anonymous

    Answer by Anonymous at 10:05 AM on May. 5, 2009

  • Walk away from an affordable mortgage and risk my kids not having a roof over their heads, or a home that I can't afford to pay for? No way!

    I'm going to have to see if I can find that on youtube, or something, because I missed it. You have every reason to be angry about it!
    Mangy_Momma

    Answer by Mangy_Momma at 10:08 AM on May. 5, 2009

  • Thanks for the interesting question.......just makes me wonder what changed so much in America that we have so little sense of ownership....I'm not talking about people losing jobs, home, everything they worked for.....I'm talking about the idea that everything is someone else's fault or problem.......that goes for everyday people and the big CEOs at the top......people need to stand up, take some blame, and get on with it. Everyone has something to shoulder in the current times...if your biggest problem is your house isn't worth so much right now, you might be out some money.....put on your grown-up pants, pay your mortgage, and show the world that being American means you stand for something!! Sorry and little fired up this morning...coffee kicking in!

    bolz08

    Answer by bolz08 at 10:10 AM on May. 5, 2009

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