You are upside down in your mortgage. You will never claw back that hundred grand in lost equity. You say well this is my home. Your taxes are high. They will never come down. Your mortgage is high and worse you cannot refinance because your house is inverted. You are stuck in an over valued asset that is bleeding you dry and you are on the same footing as a renter. In fact it is worse than a renter. You owe the bank for the full amount of your mortgage. A phantom tied to a value that vanished five years ago. Should you stay or go?
Ten million people are facing this dilemma. When rich people have a bad investment they walk. Middle class morality does not exist .But for the millions stuck in upside down homes there is really only two options .Keep paying on a depreciating asset if you can or you walk out of your house and start over. A short sale perhaps. A deed in Lieu (give it back to the bank) Or good old foreclosure where you get to squat for a couple years before your house goes to auction.
These are the options for a large segment of the population and none of them are good. Walk and your credit is trashed. Stay and have nothing to show. Strategic default is what they call walking now. Jingle Mail. Everyone one has to face this one and figure out their own bailout plan. But sitting will only work so long. If you take your medicine then you can start over. Don't take your medicine and stick it out and hope values could come back. Not likely.
So there it is. Stay or Go. The medicine is bitter but waiting only prolongs the disease.
Rocket Man...the American dream upside down
Ten million people are facing this dilemma. When rich people have a bad investment they walk. Middle class morality does not exist .But for the millions stuck in upside down homes there is really only two options .Keep paying on a depreciating asset if you can or you walk out of your house and start over. A short sale perhaps. A deed in Lieu (give it back to the bank) Or good old foreclosure where you get to squat for a couple years before your house goes to auction.
These are the options for a large segment of the population and none of them are good. Walk and your credit is trashed. Stay and have nothing to show. Strategic default is what they call walking now. Jingle Mail. Everyone one has to face this one and figure out their own bailout plan. But sitting will only work so long. If you take your medicine then you can start over. Don't take your medicine and stick it out and hope values could come back. Not likely.
So there it is. Stay or Go. The medicine is bitter but waiting only prolongs the disease.
Rocket Man...the American dream upside down
