I get a lot if people asking me if I feel moraly wrong walking away from my mortgage. So in this post I will let you decide if I should feel wrong about walking away.
The facts:
Purchased the townhome in 2005 for $252,000.
Down payment: $50,000
Interest paid to date: $12k a year @ 5 years equals $60,000
Total cost to date: $110,000
Current value of Townhome: $90,000 ($112,000 upside down of current mortgage)($162,000 underwater from original purchase price)
At the middle of 2009 I asked the bank for a loan modification and was told twice that they wouldn't do anything until I miss my payments. I have given them over $100,000 in 5 years and they aren't willing to help me out after they recieved a bailout from the government! If this was any other business wouldn't they work with a client that has always paid on time?
When purchasing the house I signed a contract stating if I do not pay, they will get the house. Isn't that fullfillment of contract?
So you tell me, is it wrong to walk away from your underwater home? Sounds more like a business decision, like when the banks decided not to work with me and many others.
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