November 1st, 2009 
Uncle Sam The following information is some of the most important advice I can recommend for homeowners who are in a negative equity situation:
“…The other night I meet some friends for dinner. When a got there a lady I used to work with came up to me and told me her situation. In 2007 she bought a condo in Arlington, Va. for $300,000 and its value had dropped to $200,000. She still owed $295,000 on it. She told me she could afford the payment, but was considering walking away. I asked her what was her mortgage payment and condo fees were. It came to $2,300/month. Then I asked how much would it cost to rent a similar apartment. Her answer was $1,200-1,300.
I said the answer was easy, walk away. In fact, I told her I would stop paying the mortgage and see how long it took them to foreclose. She might be able to live there 6 months or more rent free….”
But also consider this:
“…I occasionally have people ask me what they should do about their underwater mortgage. I sometimes give them an opinion as to what I think might be appropriate but I always tell them to consult an attorney or You Walk Away (the latter has attorneys for the states they do business in).“Strategic Defaults” a Mortgage Broker Comments on Fear and Shame Tactics which in turn was in response to …”
The reason I say this, and it came up Friday before I did these recent pieces, is because I cannot possibly know what the laws and nuances are in every state.
Today I received another email in response to
You DO have options. Weigh them carefully, then execute. Don’t be afraid. Any damage to your credit WILL recover. Do for you and yours while you still can!
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