When you default and have no job….there IS NO MODIFICATION SOLUTION and YOU WALK.
The next wave down will be due to unemployment and this will take us down further….
If your buyer’s are comfortable with these things and still want to pull the trigger for whatever reason then that is there decision.
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Yes, true, without any income you can’t pay the mortgage, but can you pay rent either?
If someone gets a place for $536/month as in Urban Realtor’s example, wouldn’t that be pretty close to rent, even with HOA and property tax?
Maybe the one big thing is the level of commitment and penalties. If you walk out of a lease and move in with folks, the credit hit is not as bad as if you move into foreclosure.
(I’m just trying to explain this to myself out loud. ) 🙂