“Underwater” Mortgages – How Many Would Walk Away? – Survey Results
Arising out of the foreclosure crisis, there is a new phenomenon causing concerns all around and putting the US government under pressure – Home owners just walking away from their homes, leaving the premises have a ghostly look deserted. This happens in all parts of the country, especially where the foreclosure crisis has hit hard.
It is really a daunting experience for a home owner to desert it – after living there for years happily and enjoying the fruit of his or her savings and investment in life to acquire that property. Sorrows and joys, ups and downs, child birth and death of kin all would have happened while in residing there, as the proud owner of the premises called “Home”. Invariably the attachment one has with the own-house needs no elaboration.
The foreclosure crisis, where home owners used financial assistance from mortgage lenders and become suddenly unable to meet their repayment commitments, are uprooting millions of home owners and pushes them to this brink of desertion of their beloved homes. When the property value becomes less than what is owed on mortgage of that property, it is said to be “underwater” – tersely meaning that the flood is running above their heads and make them sink.
Trulia.com and Realtytrac jointly conducted a latest survey among these “underwater” distressed home owners. In the given situation of their inability to meet the mortgage, even by selling the home – known as negative equity – 41 percent of those polled the online survey said they would walk away from their homes, while the majority are not yet ready to leave their homes.
Walking away would be the first choice of only 1 percent of the survey participants while 69 percent of them said they would attempt alternative ways, including refinancing first.
Peter Flint, CEO of Trulia.com says the Home Affordable Modification Program announced by the federal government has not had the desired effect on the problem, since for every borrower who avoided foreclosure through HAMP plan last year, another 10 families lost their homes, showing that the government programs will never reach the overwhelming majority of troubled home owners.
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[...] Arising out of the foreclosure crisis, there is a new phenomenon causing concerns all around and putting the US government under pressure – Home owners just walking away from their homes, leaving the premises have a ghostly look deserted. This happens in all parts of the country, especially where the foreclosure crisis has hit hard. Read More.. [...]