With their homes dropping below what they paid and the interest on their mortgages rising, many homeowners are opting to walk-away from their homes and let the bank foreclose. They are willing to accept the stigma and the mark on their credit ratings.

 

Submitted: Jan 28, 2008    Views: 353    Comments: 2    Likes: 3   


View Article: http://latimesblogs.latimes.com/laland/2008/01/a-tipping-point.html


Related Articles:



3

Email this story Email to someone | Print Story Print Content | Add to reading list

Comments Received:

ChristySchien
ChristySchien

What is remarkable is that it is only a stigma and a blow to the credit rating. Walking from your home should be tantamount to declaring bankruptcy since the mortgage deed allows the bank to go after the purchaser for any deficiency on sale. I don't know why banks aren't going after these folks. Instead, they are letting them have a free call option on their houses when they put no money down. It seems that in California, people who are unable to read or naive are given a pass on personal responsibility.

Posted: Jan 30, 2008

Sam Cass
Sam_Cass

These folks have nothing for the banks to go after. That's the point. The banks didn't do their due diligence. The banks could sue but that would be very costly and result in bad pr. The banks are taking a beating on this one.

Posted: Jan 31, 2008



Add Your Comments:

Your Name:

Spam protection control:


Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website’s operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2007 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.