60 Percent Say It’s “Never OK” To Walk Away From Mortgage

April 5, 2011 No Comments »

walk

Most Americans are opposed to homeowners walking away from their mortgages, according to a new poll from legal website Findlaw.com.

According to the survey, 60 percent believe it is “never OK” for homeowners to simply stop making mortgage payments if they’re able to do so.

But 34 percent think it’s okay to walk away from the mortgage if the homeowner is unable to make mortgage payments.

And just three percent believe homeowners should be able to walk anytime they want.

“Many homeowners are currently facing very difficult and complicated situations involving their home mortgage, in some cases even including the threat of foreclosure,” said Stephanie Rahlfs, an attorney and editor for FindLaw.com, in a press release.

“But before making any major decisions, homeowners should consult with financial and legal professionals, including accountants, real estate attorneys and financial advisers. Any major change to a mortgage situation could lead to serious and unanticipated consequences involving taxes, contract law, credit scores, ability to borrow in the future, potential for lawsuits, and much more.”

Strategic default reportedly accounted for 31 percent of foreclosures in the first quarter of 2010, but some economists believe those numbers are overstated.

A pair of analysts from Spanish bank BBVA recently noted that negative equity is a necessary condition for default, but not a sufficient one, adding that the value of homeownership goes far beyond home equity.

Leave A Response