This can have a domino effect on a neighborhood as foreclosures will devalue the comparative market analysis of homes sold in an area. Many people look at this as selfish, and unruly towards your fellow neighbor, in the sense that you are just bailing on the mortgage. Fannie Mae and Freddie Mac have implemented new rulings on these jingle mailers, in that they will not approve a loan to anyone who has done this in the last 5 years from walking on the mortgage. People are not really too concerned about having a foreclosure on their record, since the pain of paying for a mortgage that is upside down a couple hundred thousand dollars, pales in comparison. For example, this problem is predominant in Phoenix AZ, where many people bought at the height of the real estate boom a couple of years ago, and now, there property is much less then what it was worth then. A $525,000 house purchase in AZ in 2005, might be worth $325,000 in this market.

For a frustrated homeowner, who might not even be behind on his payment, the thought of throwing their money away to catch up on a mortgage that might take 20 years to correct itself, hardly seems like the dream of home ownership. They are sending in their keys instead.

In conclusion, if you think about turning in your keys, and walking on your mortgage, talk to your lender first, and see what they can do. You do have options, but walking away from your property is a selfish thing to do. You can do short sale, deed in lieu of foreclosure, and many other options that will benefit both parties, instead of jut walking away from your financial obligation.

More info on your stop foreclosure information search:

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