| No one knows for certain the exact percentage of | | | | When mortgage bankers walk away from their own |
| foreclosures that are the result of people's decisions to | | | | underwater mortgages, why shouldn't we? |
| walk away from underwater mortgages, but we do | | | | Let's take a look at who actually has something to |
| know those numbers are on the rise. Reports indicate | | | | lose here. If you've only been in your mortgage for a |
| that from 14% to 18% of mortgage foreclosures are | | | | little while and it's seriously underwater, you stand to |
| actually strategic defaults. | | | | lose tens of thousands or even hundreds of thousands |
| In other words, people who are choosing to default on | | | | of dollars if you stay in that mortgage. If you're a lucky |
| their underwater mortgages while keeping up on their | | | | lottery winner and can afford that kind of a loss on a |
| other bills. | | | | mortgage, more power to you. |
| What we do know for certain is that more | | | | But most of us have families and other responsibilities. |
| homeowners are finally getting the message that it's | | | | Most of us realize that we're going to be on our own |
| OK to save yourself and your family and strategically | | | | in retirement. The mortgage lenders and government |
| default if your mortgage is under water. In one survey, | | | | officials who are telling us to play "the rules"-their rules |
| 31% of people perceived their foreclosures to be | | | | for us, not for themselves!-certainly aren't going to be |
| strategic, up 9% from the year before. | | | | there when we're trying to figure out how to live from |
| And we also know that the more underwater a | | | | one Social Security check (if that!) to another. |
| homeowner is, the more likely she or he is to think like | | | | So why should anyone keep trying to swim |
| an investor and be rational in making decisions about | | | | underwater, so to speak, when we need our |
| the mortgage. This makes sense-it's a lot easier to be | | | | hard-earned money to get back to dry land? |
| emotional when your mortgage is only 5% underwater | | | | We're not arguing that walking away from your |
| and you love the house than when you're 25% or | | | | mortgage is a sound moral decision. We don't think |
| more underwater and you're seeing your retirement | | | | morality is involved here! You have a contract that's |
| being swept away by the tide! | | | | not in your best interests to continue. Your mortgage is |
| What we're saying here is that people are finally | | | | sufficiently underwater and you officially have a bad |
| getting the fact that a mortgage is a legal contract, not | | | | investment on your hands. What do businesses do |
| a moral obligation. Even the Mortgage Bankers | | | | with bad investments? They walk away from them! |
| Association, which wouldn't hesitate to call any actual | | | | We hope that what you've read here and what you'll |
| human being who defaulted irresponsible, defaulted on | | | | read elsewhere on our website will help you realize |
| its mortgage on its own headquarters in February | | | | that walking away from your underwater mortgage |
| 2010! | | | | may be a sound business decision. And morally, you're |
| So why are more people walking away from their | | | | not responsible to your mortgage lender-the lender |
| underwater mortgages? We like to think it's because | | | | gets your house, after all! But you are, ultimately, |
| we're all getting wiser to the double standards being | | | | responsible for yourself and your family! |
| pushed by mortgage lenders and the banking industry. | | | | |