Can We Get Long Beach Homeowners To Pay Back Their Mortgages?Have we lost the moral stigma associated with foreclosure?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?
http://www.longbeachrealestatehome.com/0090F8 Posted on May 04, 2008 12:54:07 by Laurie Manny
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