What Are Your Options If You Are Upside Down On Your Home?
That is a great question and the article below from The Wall Street Journal addresses it very well. Seeing that 1 in 4 homeowners are underwater, the article can be very useful to many.
You can keep paying it if you can afford it, you can walk away by strategically falling behind on mortgage, do a short sale, or become a landlord.
The most interesting part to me was this. “Abandoning a home is said to be more acceptable with the younger set under 30, who don’t view satisfying the lender as the most important payment one makes. Brent T. White, an associate professor of law at the University of Arizona, continues to think it is OK to jump ship. He maintains that the government and other “social control agents” encourage homeowners to follow social and moral norms and “ignore market and legal norms under which strategic default might be both viable and the wisest financial decision.”
I am not sure age matters that much because I hear people talking about this in droves as though it is okay.