I’ve previously blogged in favor of toughing it out and not walking away from your upside down/underwater mortgage if you could afford to maintain your payment. Been there, done that. In my scenario, it was a hurricane that drove prices down for about five years, but they did come back to original levels and more.
An article in New York Times Magazine in the last few days somewhat said for some it was o.k. to abandon their mortgage commitment. I posted a good bit of that article yesterday because I agree that everyone is unfairly putting this decision burden entirely and unfairly on the shoulders of the Borrower. If Lenders have been given a big slice of the Stimulus Package Pie, why can’t they meet Borrowers half way or more, and modify their mortgages, specifically lower their interest rates ?