http://www.calculatedriskblog.com/2010/01/is-this-really-walking-away.html
“First, “walking away” usually means the homeowner can afford to pay their mortgage, but are choosing to strategically default (or in the language of servicers “ruthlessly default”) simply because they owe more than their home is worth.
This homeowner lost her job and has other financial issues. Yes, she owes more than her house is worth, but this sounds like a normal foreclosure caused by financial distress.
Second, why is her mortgage payment $1,450 per month on a $154,000 mortgage? Is that a 10%+ interest rate? Is this PITI? Is there a 2nd with Tony Soprano? Perhaps the reporter could have explained this a little better.
Third, if she stopped paying her mortgage in September 2008, what has the bank been doing? “
Surely the $1450 figure isn’t P&I, but the whole payment including tax and insurance escrow, and probably private mortgage insurance. This is from the NYPost, so both real estate taxes and insurance are probably a good deal higher than they are where most FReepers are reading this from.