Personal Finance, Bargains/Deals and My Misc Ramblings
With the real estate going upside down, some homeowners are already thinking of walking away from their huge mortgage and foreclose even if they can afford the payments. Economically, there are no differences between the renter and a homeowner whose making monthly payments on a home that is having a negative equity. Both are just throwing money away but the renter will come out ahead because a renter would just throw away $875 versus a homeowner whose throwing away $3,500. The renter can actually invest the difference in something else such as stocks or just CD or treasury bonds and they will still come out ahead. The renter can even use the difference to buy jewelries such as a Hublot or other things.
Gary
January 27th, 2008 at 9:04 pm
My brother, who is a bankruptcy trustee, said the recent changes in law made it more sensible to walk away that file for bk. I thought that was an interesting take. It puts alot of burden back on banks and mortgage companies, who should not have made certain loans in the first place, now it appears.