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April 13th, 2010

Have You Considered Walking Away?

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We’ve talked a lot about walking away from your mortgage (strategic defaults) on this blog. We’ve asked readers to weigh in on the subject (both in the comments section and in our poll), and we’ve had some differences of opinions over whether or not borrowers are obligated to stay in their homes.

The May 2010 edition of Money Magazine published an interesting poll that asked readers, “Would you ever consider walking away from your home loan?” We wanted to share their results:

Never: 42%

Only if I had to: 38%

Yes: 16%

Already have: 4%

We’ve defined walk aways, or strategic defaults, as borrowers who voluntarily defaulted on their home loan (even though they could still afford to make monthly payments). According to the May edition of Money, 26% of homeowners “defaulted when they could afford to pay their loan.”

Here are some other really interesting stats we found in Money’s latest issue:

Question = Say your credit score is 780, how would a short sale impact your credit score?
Answer = It would drop by 150 points.

Question = How many U.S. homeowners have a mortgage balance that exceeds the value of their home?
Answer = 11.3 million.

Question = What credit score do you need to qualify for the best mortgage rates?
Answer = 760

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One Response to “Have You Considered Walking Away?”

  1. Home Affordable Foreclosure Alternative (HAFA) Program | Saratoga Voice Says: April 14th, 2010 at 8:08 pm

    [...] Have You Considered Walking Away? [...]

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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