Aaron Auxier wrote a thought provoking post today entitled: "The FICO Forgivess Act of 2012. Principle reduction Bailouts for Homeowners. Someone better start paying attention".
Aaron's post discussed the "Talkin' Walkin'" going on in Las Vegas. Homeowners who can afford their mortgage payments, but are choosing to walk away from their homes because of the significant drop in value.
I myself have heard of couples transferring debt and assets in order to prepare to "walk-away".
Never did I think I could understand the reasoning behind this...but I do.
A home is a financial investment. What do you do if you open a business and it continues to bleed money each and every month? You cut your losses and close the business. Do you do the same thing with a home that loses value each and every month while your outlay remains the same or increases?
If a homeowner paid $400,000 for their home and now the home next door just sold for $200,000, the homeowner is looking to be making payments for 20 years for.....not? Why not walk away? Their credit will be restored from a foreclosure in less than that period of time.
Some will say that the homeowner has an ethical and moral responsibility to pay the obligation they signed up for. Well, is it more ethical and moral to pay the bank or look out for the financial well being of your family?
What more important? A FICO score or financial security? I think it's financial security.
Tina in Virginia
**************************************************************************************
Tina Merritt and her Associates. can be reached at email: tina@nestrealtygroup.com or 757-287-6338.
Our Network consists of both buyer and listing specialists helping buyers and sellers in Southeast Virginia, Hampton Roads, Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk, Isle of Wight County, Hampton, Newport News and Poquoson, Virginia. In Southwest Virginia, the New River Valley, Blacksburg, Christiansburg, Radford, Pulaski, Dublin, Floyd, Narrows, Pembroke, Pearisburg, Glen Lyn, Rich Creek, Check, Hiwassee, Indian Valley, Parrott, Newport, Shawsville, Pilot, McCoy, Long Shop, Fairlawn, Wythe, Draper, Willis, Sowers, Elliston, Eggleston, Ironto, Riner, Auburn, Rogers, Giles County, Montgomery County, Floyd County, Pulaski County.
Visit our website: NestRealtyGroup.com
