I read an article that was essentially about people who are in over their heads on mortgages and how the new mortgage-relief plan might or might not help them. One thing jumped out at me from the article, mostly because I’ve been hearing similar statements a lot lately:
“I want to stay in my home – it’s perfect for me,” Martinez said. “But I don’t want to make payments on a $200,000 loan when my house is worth $70,000.”
Why does it matter what your house is worth now, if it’s perfect for you and you agreed to the price when you bought it?
Why does it matter if the houses around you are selling for half of what they were 3 years ago, if you don’t want to move?
I don’t think it’s acceptable to decide that you just “don’t want to” make payments on something you agreed to. And this is a big part of the problem, at least in this area.
I’ve heard people talking about how their neighbors walked away after buying a new house, because they got a larger house for so much less. I don’t think that’s right, and I think it’s a good part of the reason why housing values have dropped so much here.
I don’t get any of that. But mostly, I don’t get why it bothers people so much to be upside down on their house (if they have no plans to move) when it doesn’t seem to bother them one whit to drive a shiny new car off the lot and instantly be upside down.