Twice As Many Underwater Homeowners Think Its Okay to Walk Away from Mortgage

May 11, 2011 No Comments »

walk away

More underwater borrowers think its okay to ditch the mortgage, according to Fannie Mae’s First Quarter 2011 National Housing Survey released today.

In fact, 27 percent think its okay to walk away from a mortgage if they are underwater or “face financial distress,” nearly double the number seen in January 2010.

There is a silver lining tough – just 23 percent of the mortgage borrowers polled said they were underwater, down from 30 percent a year ago.

So that must mean more people are going to stay put and ride out the housing storm.

But only 31 percent of underwater homeowners feel they have sufficient savings, compared to 42 percent a year ago.

And nearly half (46%) of underwater borrowers say they are stressed about their ability to make mortgage payments and satisfy other debts, versus 35 percent in June 2010.

Unsurprisingly, just 67 percent of underwater homeowners now feel buying a home is a safe investment, down from 75 percent from a year earlier.

Overall, 87 percent of Americans continue to disapprove of defaulting on the mortgage if underwater or facing some kind of financial stress.

And while the number of Americans who perceive homeownership as a safe investment has declined steadily, from 83 percent in 2003 to 66 percent in the first quarter of 2011, 57 percent still believe it has the most potential of any investment.

Tip: Can I refinance with negative equity?

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