Since I am 22k upside down in my mortgage, why shoudln't I just walk away?

You shouldn't walk away because you borrowed the money. The bank has no control of the market. they did not cause your house to lose value.

If you have ever bought a car, that has lost value. Does that give anyone the right to stop paying the car loan? If you do, the bank will take the car, sell it and come after you for any difference. The same thing happens with the house.

the bank didn't purchase the house, they only agreed to lend you the money you asked for to purchase the house. The only thing they did was get someone (appraiser) to make sure the house was worth what you were paying for it at that time.

Someone else said it correctly. What if you purchased the house and after 5 years it was worth $50,000 more than you paid for it. Should the bank get that extra money or should you? It should be you, it was you who agreed to purchase the house, it was you who took care of the property, etc.

Your net worth would not increase by 22k. You would still owe the debt to the mortgage company. If anything, you could end up worse off because foreclosures usually add about $40,000 in fees to the amount you owe.

Let's put the shoe on the other foot here, if your value increased would it be fair for the bank to ask you for some of that money?

Frankly I'm a bit sick of all the people that have your proposed mentality.

Let's try another view point too...

When dead beats "walk away" from their homes you may think that the bank is "getting what they deserve" but what is happening in reality here is you screw up the economy for all of us since the Federal Government does not get "bail out" money from a money tree, they take it from all of us taxpayers.

So in the future your kids Will live with you forever because they'll never be able to qualify for a loan and rent will be sky high because of all the other people that can't qualify.

22K is nothing, you'll recover that and more over the next five years... stay put and be proud you're a responsible adult.

What matter is whether you can afford the payments - not how much equity you have (or don't have). If you can make the payments, walking away would be foolish.

Banks don't raise mortgage loans rates "because they decide that you're a credit risk" - that's for credit cards. If its an ARM, it will adjust according to the loan terms.

Sorry your property is declining in value, that said, it is not the bank's fault. Think of it this way, maybe you would never have bought your house if you didn't get that mortgage, and the tax benefits that go along with that. Have you saved any money by not renting? Would you have spent $22,000 in rental that gave you no return?

Remember, your property may increase in value, and the bank will not ask you for any more $$$ when you sell.

Walking away from responsablity is a big deal. We are either a person of our word or not. Defaulting on a mortgage is the worst thing that you could do to your credit. Lender's would rather see late pays on everything else but a home. I believe that if you signed up for the mortgage program and you can afford the pyts. then waite the market out. when real estate improves... and it will... then sell and save your credit.

Never walk away from responsibility. Debt, Family,or otherwise.

When you signed your mortgage agreement you should have known the risks you were taking on. I hate it that so many people are losing their homes but that leaves people like me who end up having to pay for it. You walk away and that crushes your credit history. The gov't isn't really going to bail out all the mess, it comes down to the consumers who did read the fine print and knew what they were getting into. I'm fortunate that my job is pretty secure right now but I have contingencies if that changes - all on my own. I'm single, never married and I own my own home and have a great credit rating because I was careful and diligent in reviewing anything I got into. The rate changing you refer to is really on credit cards. That too is in your credit card agreement. The responsibility is on your shoulders to know and understand the risks and the rules.

Your net worth isn't going to be $22,000 higher, because the lender would come after you for the difference, plus all the associated fees.

The lenders loaned money on the basis of an obligation to repay, not on increasing value. Those that bought houses on speculation or purchased houses they couldn't afford area "sorta getting what they deserved."

Plus, your credit would be trashed and you would pay more for everything based on credit score. For YEARS.

So, that is why you shouldn't walk away.

I would not walk away, unless you can not afford the house payment, walking away, will destory your credit, and what will you do then, rent, you will just be throwing your money away then. I would try to make it work, and try to get out of that loan, and refi to a new loan, you may be able to make up the 22K some how. There are other options, I would try before walking away...

no longer to be sarcastic, yet, it kind of feels that once you're making "a number of of money", then you definately ought to be able to pay that "the different way up". if reality learn that the monetary corporation will actually come once you because variety #a million: Federal govt. money is insured, and also you'll be committing against the law. If I were you, i ought to promote the homestead, Hay, that's a consumers and sellers marketplace-you want to comprehend that. My suggestion is to analyze with a monetary adviser. notwithstanding, i do no longer imagine it must be a sensible determination to pay for a house in money, instead you need to maintain all of your money, pay off contemporary money owed-if any and performance about $10,000.00 attainable on your bank account as a down fee in route of the hot sources. in case you walk remote from the present duty no longer purely will you be in worry with the IRS, your credit status will be decreased. to purchase a house someone must be in wonderful structure to personal a house because a proprietor of a house is in charge for the upkeep and upkeep of the sources.