Never thought I would here the term “jingle mail” being talked about so much again. It was a common term in the 80s.
The big worry among those in the finance circles is that “just walking away” will become socially acceptable. I personally don’t see a stigma.
If I was hopelessly underwater, knowing that housing prices are heading down and we’re going into recession, I would be very tempted to walk too!
This housing downturn may last 5 years, maybe even longer. The downturn last one in the 90s was at least 4 years. Most folks thing the peak around here in SD was late 2005/early 2006. We’re probably not gonna see any real housing appreciation for a long time.
By the time this whole housing bubble shakes out, you would have time to get your credit back up and buy your next house.
In America, entrepreneurs and investors take big risk and fail all the time. Sometimes you gotta take your losses. Walking away from mortgages may be the best financial decision for your family. Throwing good money at a depreciating asset is usually not a good thing.
