Can We Get Long Beach Homeowners To Pay Back Their Mortgages?

HR 5830: The FHA Housing Stabilization and Homeowership Retention Act of 2008 , is designed to provide relief for homeowners in trouble by refinancing their loan to reflect lower housing valuations.  If the current lender ˜forgives 10% of the loan balance, it allows a homeowner to enter into an equity sharing type of arrangement for a refinanced loan.

I offered my analysis of and support for this bill, on BloodhoundBlog.  A discussion arose about a change on social mores, most often associated with younger, first time home buyers.  It seems that the compunction that comes with a mortgage default has disappeared.

My questions for discussion are:

1- If your property value has dropped below the amount owed on the home, are you inclined to walk away from the loan (s) ?

2- Does the prospect of not being able to obtain real estate financing for 4-7 years dissuade you from walking away from the loan.

3- Do you feel a moral obligation to pay back the full amount of the loan regardless of the value of the property?

4- What do you think will happen to loan guidelines if compunction towards loan default disappears?

Related Posts

Posted on 2008-05-04 @ 4.54:07 pm by Brian.Brady

Comment from: Cyndee Haydon [Visitor] · http://www.clearwaterrealestatetampahomes.com

Interesting questions - I agree I am seeing the “social pressure” to repay has changed - not sure how that will effect things in the years to come.

Permalink 2008-05-05 @ 12.37:22 am

Comment on this article

Name:

Email:

Your email address will not be displayed.

Site/Url:

Your URL will be displayed.

Your vote:

Poor Excellent

Comment text:

Standard HTML is allowed in posts

Options:

Line breaks become <br />


Remember me


Allow users to contact you through a message form.

Captcha:

Please enter the characters from the image above. (case insensitive)

Captcha code:

This post has no comments awaiting moderation.