2.4 million homeowners in the U.S. have less than 5% of their own money in the house. And we wonder why 1 million houses last year went to short sale or foreclosure. 60,000 in Phoenix area alone!
Unemployment is about 6-7% usually with about 50% of that not intending to work and not looking. When unemployment goes up to 8-10% that really for me does not correlate with repossession. Over 1/3 of all houses are owned without a mortgage.
I am willing to say that once the house became only a house, the owners walked on it just because the downside was not severe enough to stay. Too bad they didn't buy a home.
Is there a difference between walking on a debt you can afford and walking away from me if I lend you 20 bucks? I think not. Both were promises right?
20 years from now when they look at the house they walked on, many will kick themselves really hard for that boneheaded move.
There are tragic exceptions but the home is special. My daughter comes to the house and you can see her blood pressure drop and her smile get a little bigger. It becomes more than just a building for many. Its like your fort, when you were a kid. It represents an anchor, a place where you belong. A place where you are you and everybody there loves you for exactly who you are. It is where you store your memories.
My house is way to big for us now. The kids are not here. My house is not for sale. Every room has so many memories. So much love. My house is not just a building.
Anyhow, I digress. Sell everything else first and keep the house as long as you possibly can. You need a place to live anyhow, why not there?
