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Thursday, May 13, 2010

Strategic Default - "because everyone else is doing it .."

60 Minutes did a segment last Sunday night that centered on strategic defaults - people walking away from their house even though they could afford to make the payment!

There has been considerable discussion on this topic and I am sure it will continue. I wrote a short post about strategic defaults about six months ago on this blog as well. 

Some say is it simply a business decision.  A very rational  case can be made for walking away when you look at the numbers. I am not sure this is taught at Wharton School of Business or Harvard Business School, but businesses have employed this practice for years.

Some say it is a moral decision. Perhaps a dichotomy does exist. 

It is a tough call.  I remember as a child being told  that "because everyone else is doing it is not a valid reason?"  I think my folks were a bit more dramatic as I tried this excuse and it usually cost me.

Strategic defaults and short sales will cost but I am not one to judge motives.  I understand that behind every short sale and foreclosure (and standard sale) is a person (or family) with issues I am not qualified to judge.

If you are having a difficult time making your mortgage payment due to job loss, income loss, illness or whatever reason, a short sale may be an option to consider rather than a foreclosure.

Call me, Gary Waters, Florida licensed real estate agent/Realtor, Century 21 Baytree Realty, Rockledge at 321-693-3850 or drop me an email if you prefer.

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