“They are beyond under water. They are at the bottom of the ocean. “
I wonder if it’s wise to continue making payments and living in the house when the outlook is so bad. Some people are so far behind that it will take a decade to balance out the loan and the price their house can sell for.
It may take a decade to evit the non-payers. Free rent.
Depends. If something happened to the market where I live and suddenly my home was worth less than i owed, It would make sense for me to continue paying because I have no plans or designs to move for quite some time.
But if they can afford the current payment (or a restructured payment) and intend to stay put, the value always comes back and exceeds the purchase price. It is only a matter of time; it can be just a few years or it can take a decade or more.
Interesting comparison. Since the worst thing foreclosure can lead to is a bad mark on your credit rating that "only" lasts for ten years, then maybe everyone out there should be making some sort of calculation.
If you can't get back to square one within ten years, then cut your losses, take the credit hit, and wait out the ten years in a cheaper apartment.
That's always a question in times like these...do I do the smart thing, or the right thing?