A New York Times article describes how more people are walking away from their mortgage. It seems that the common decision point by a home owner is once your home value reaches 75 percent of the mortgage people walk. When you look at the estimates now coming out that home appreciation will be in around 2 percent per year once the market stabilizes, it will take a number of years to get back to where your home value and mortage owned are equal.
According to an article on REALTOR.org there are 4.5 million homeowners now with their home value equal to or less than 75 percent of their mortgage. This number is expected to grow to 5.1 million by the middle of this year.
Our prior posts about walking away are these;
Don Grafues
Resource: The New York Times & REALTOR.org
Resource: The New York Times & REALTOR.org
