Why Defaulting On Your Mortgage May Be Best
housing market
In an academic paper titled, “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis,” written by Brent White, a law school professor at the University of Arizona argues that those who are underwater in their loans should just leave.
By leaving, it could potentially save them thousands and it won’t be long until they recuperate themselves. Defaulting “strategically” can pull more walkaways by buying all the major items they may need in the near future such as a car or even a house right before you take a hike. As long as you stay current with other mortgage lenders, one could potentially have a good credit standing in 2 years.
Also, many believe that signing a contract with your mortgage is for life, but contrary to popular belief, mortgage lenders have either no legal rights or limited rights to pursue walkaways.
