With one in four mortgages said to be underwater there are many homeowners who aren’t looking at refinancing their home mortgage but rather they see defaulting as the best option. This comes off the heels of a professor’s publication at the University of Arizona who, though he claims he doesn’t advocate willfully defaulting on a mortgage, speaks of homeowners defaulting who have a home mortgage that is underwater.
If a home mortgage is underwater then what is owed on the home is more than the value of the home. Looking into willfully defaulting is a terrible option due to the hit a homeowner’s credit would take and getting a mortgage loan in the future would be more difficult if a homeowner defaults.
The housing market is on the mend but some analysts say it will take months or years to recover, so should someone who owes more on their home then it’s worth default rather than refinance their home mortgage? No!
Refinancing a home mortgage at the present time is in the spotlight of the government and is an option that can easily be taken advantage of by anyone having trouble making payments.
If a homeowner simply doesn’t want to pay their mortgage on a home because it is valued less than their home mortgage loan then responsibility must outweigh madness if defaulting seems like a good idea.
The housing market will rebound, homes will rise in value, and homeowners will once again have worth in their homes. If you’re considering defaulting just to default then rethink your strategy. There are a variety of options out there for anyone who is in trouble with their mortgage. Many seeking bad credit home loan mortgage rates have seen higher rates over the last few years making refinancing not such a good idea. It is always a smart decision to contact mortgage lenders before making a final decision.