The Associated Press came out with an economic stress index of the 20 most economically stressed counties consisting of 25,000 or more. San Joaquin County where we live makes it at #11. Pretty sad, but that’s the story here, and that’s why we knew that for our financial well being we had to walk away from our house because it will never come back to being above water. I’m 63 years old and my husband is 65; we don’t have a lot of time to sit around and wait for the market here to come back anyway.
Then there is the New York Times article I’ll attach about foreclosures being higher in the over 1 million dollar homes now. The article hits a few salient points about the richer folk not having any shame about dumping a property that is a bad investment where a lower economically disadvantaged person will keep writing the mortgage check until they’ve emptied out their bank account and have nothing left. Even the president and CEO of Freddie Mac said that walking away might be a better idea for some people.
My husband and I aren’t rich and we aren’t poor, but we knew we had a very bad investment on our hands and so decided to give the house back to the bank before we did become very poor. The bank can re-sell it for what it’s worth.
Biggest Defaulters on Mortgages Are the Rich
By DAVID STREITFELD