Interesting article about a research by an associate law professor at ASU whose name is Brent White. According to his research not enough people are walking from their underwater home due to restrains and marketing by lenders scaring people about their credits. He advocates that mortgages should not be reported to credit bureau so the homeowners could have more leverage in negotiating a loan modification with their lenders. He states that "It's unfair that responsible homeowners, who bet on the housing market just like lenders, are bearing the burden of the meltdown". Fair or unfair: what's your take?
Well Marcelo, you touched a nerve. I am disgusted by "strategic foreclosures". Everyone should have a fair shot at a loan mod, but nothing irks me more than when I hear of someone who can afford the payment, but decides they shouldn't have to pay their mortgage anymore because the value of their home went down.
Overall I feel its unfair. Yes there are some buyers who bought on sheer speculation but most who bought becuase they wanted or needed a nice place to live, obtain the american dream of home ownership, and yes... hope that their property will appreciate in value but are now deep underwater yet they continure to manage and make their mortgage payment should get some kind of help.
It's not fair that only the lenders get bailed out- it would be great to see some of these home owners who are responsible enough to honor their payment agreement get a pat on the back and be given an incentive to continue to make the payments even though their house is worth 20-40% less than what they owe on it.... Unfortunately I really dont see this ever happening. I think that if you need to get your loan modified or restructured you will have to stop making those payments and hope that you'll then get noticed then...
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It's not fair that only the lenders get bailed out- it would be great to see some of these home owners who are responsible enough to honor their payment agreement get a pat on the back and be given an incentive to continue to make the payments even though their house is worth 20-40% less than what they owe on it.... Unfortunately I really dont see this ever happening. I think that if you need to get your loan modified or restructured you will have to stop making those payments and hope that you'll then get noticed then...