59 Percent of Homeowners Wouldn’t Walk Away

May 20, 2010 No Comments »


A new survey from Trulia and RealtyTrac revealed that 59 percent of homeowners wouldn’t walk away from their mortgages no matter how deeply underwater they were.

That seems somewhat hard to believe, considering the direct correlation between negative equity and strategic default, but taking a survey and actually going through it all are two very different things.

Additionally, just one percent of homeowners said walking away from the mortgage would be their first choice if unable to make mortgage payments.

An overwhelming majority (69 percent) would turn to a loan modification before anything else, despite the fact that those seem to be performing quite poorly.

“For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes. It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble,” said Trulia’s co-founder and CEO Pete Flint, in a release.

The survey was largely focused on consumer sentiment regarding the purchase of foreclosed properties.

While negative sentiment towards purchasing foreclosed properties has fallen since last year, a greater percentage of potential buyers fear the possibility of the home losing value.

However, bank and mortgage lender-owned homes and properties in foreclosure accounted for roughly 30 percent of sales in the first quarter of 2010.

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