Comments on: Guess Who are Defaulting on their Home Mortgages?

By: mozart

mozart — Mon, 27 Jul 2009 08:38:53 +0000

Well, you’re absolutely right, admin. Houses are assets, but there are some house owner who failed or skip to pay their mortgages. Do you think it’s still an asset to them?

By: nakchura

nakchura — Wed, 22 Jul 2009 02:31:47 +0000

That’s right. That’s the main reason people have besides having a home to stay at.

By: admin

admin — Mon, 20 Jul 2009 19:48:15 +0000

I don’t agree with Daniel, homes are assets. While its nice to not think of your home that way, the fact of the matter is that your home is often your biggest asset. When your home turns from a positive equity asset to a negative equity asset, all you are doing is paying on debt. You will likely never make anything on it. That’s why people are walking away, they want to invest in a home that they believe will one day make them money.

By: mozart

mozart — Mon, 20 Jul 2009 01:32:55 +0000

It’s true, that mortgages is cheaper than rental in an area, as daniel cited. However, because some people are delayed to pay their mortgage, this could be one reason that they can’t get it well directly. What do you think?

By: admin

admin — Sat, 18 Jul 2009 18:35:02 +0000

It’s one thing getting into debt to your credit card company for $ 5,000, its an entirely different thing when you find that you are upside down on your mortgage loan by $ 50,000 to $ 150,000. What it means is that you will be paying for the rest of your life on that debt, and you didn’t even get anything for it. That’s why people are walking away, because they have come to the realization that $ 500 or more a month for 30 years to pay debt they didn’t get anything for just isn’t what they throught they got themselves into.

I’m not talking about morality or what will happen if enough people walk, I’m just pointing out that most of us are thinking that the defaults are coming from the recently unemployed guy who just can’t pay his bills, and most of the defaults are coming from people who can pay but have decided to pull the pin on the house.

By: Richard Andrews

Richard Andrews — Sat, 18 Jul 2009 17:18:37 +0000

Most of the people does not like to continue to be debt.
Hence they foreclose to manage the financial crisis now.

By: Richard Andrews

Richard Andrews — Sat, 18 Jul 2009 17:14:53 +0000

Most of the people try to overcome the financial crisis.
They feel, they might be debt with foreclosing the mortgage.

By: lyka

lyka — Thu, 16 Jul 2009 05:25:05 +0000

well its a good option if you are financially hard up due to excessive debts and the likes..I had a friend who resulted to that action in order to at least lessen their burden..

By: Daniel

Daniel — Wed, 15 Jul 2009 16:18:02 +0000

That is really terrible. I can’t imagine how someone would feel being in the situation where they have to walk away from everything they have invested in because they can’t make the payments. Someone walking away because they don’t want to have debt on the balance sheet of personal finances is a completely different situation entirely. Ugh.

Homes are not assets and people really need to understand that. We purchased our home in Feb of this year as an investment because it was a killer deal in an excellent rental location and after five years that’s exactly what we’re going to do with it. Might as well live in it for the meantime because a mortgage is cheaper than rent would be in the area.

By: Ricardo

Ricardo — Wed, 15 Jul 2009 14:43:18 +0000

I’ve definitely heard of people letting go because they owe more on their mortgage than what the house is now worth.

I’ve also heard of people just assuming that they’ll always be in debt, so they just perceive it as a number. I’ve heard this about people in their 20s, as well as in middle age and older.