harveyc

Okay, Mitchel, I've got it. I was basing my comments on your statement that your friend could still afford the payments. Many people "walk" simply to transfer their loss in value to the lending institutions.

A good friend of mine bought his house near the peak and I warned him against it. He was so eager to buy a house that he bought one that requires a two hour commute to work. His father-in-law sells real estate and told him he couldn't lose and I told him his father-in-law apparently hadn't been in real estate long enough to see how people had been wiped out before. I sure didn't predict it would get as bad as it has, though. In any event, my friend has been tempted to walk away since his home is now worth about 60% of what's owed on it but he realizes he made a commitment and still is fortunate to have a good job and can afford his payments and continues to do so. I believe society would be better and, possibly, real estate prices might not have declined as much if more folks were responsible like my friend.

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