Jamie Lee More wrote a great blog today. Should a home owner who is underwater on their house walk away/do a strategic foreclosure. This means a homeowners is able to keep up their payments however doesn’t want to because their house is worth less than what they own on it. Apparently it is becoming a trend, and interesting one.Interestingly historically homeowners who bought their house for say $150,000 and sold it 10 years later for $450,000 did not offer the bank to share that equity. Now because it is the other way around, all of a sudden the bank has to share a loss, not because homeowners need to sell but because they feel it wrong to live in a house that has lost so much value.I know the current mortgage crisis has many different faces. One would say that the value of a house only matters when you buy and when you sell. So bottomline this would mean that the value if a house while you live in it and are not planning to move is irrelevant.What do you think? Is walking away from a legally binding financial obligation the right thing to do?By the way, home owners who are not able to make their mortgage payments and need to sell have great alternatives, HAMP, HARP, HAFA are options mentioned in the Making Home Affordable program. As CDPE certified Realtor I am also available to discuss your options.Don’t forget to smell the roses outside,Mirjam
