In our series, "No Excuses For Going Into Foreclosure or Not Making Your Credit Card Payments", we discuss there are many ways to save your home: get a second job, sell material items, or rent out a room.
CNNMoney.com had a recent article of people who were not going to just walk away from their home. Big, big, big kudos to these folks.
A basic cost cutting analysis predicts people who are underwater will abandon their homes and accept foreclosure. But there is little data measuring whether that logic holds true. In fact, Eric Johnson, a business professor at Columbia University, believes it doesn't. After years of studying behavioral economics-essentially the economics of choice-he argues that people will simply not make such rational decisions.
The next few individuals are some of those who decided to stay in their homes. My hat's are off to them.
Rich Foretich- Walking away is not in my nature. I borrowed the money. I built the house. I owe the money. As long as I have the means to pay it back, I plan to do so.
Pat Conroy- If I walk away, I would look at it it as a business decision. But I also look at it from a responsibility viewpoint, and as long as I can afford my mortgage, I'll pay it.
Ben Franklin- While it seems like the government is only helping the irresponsible folks who are able to stay in their homes while not paying their mortgage, families like mine are equally affected but our moral standards don't allow us to not send out that monthly check.
Mike Files- I'm sure I'm underwater, but I would never walk away due to the damage that would do to my credit score.
Those of you just walking away from your homes need learn from these individuals. These homeowners and others like them seem to still have morals and pride. So many homeowners are just walking away and contributing to the continuing downward spiral of the economy. Do what you have to do and save your homes. Stop making things worse.
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