Editor`s note; I fail to see why any homeowner should not walk away and purchase the house in his neighborhood that is much less expensive and maybe in better condition, for much less of a price and more in keeping with the real value of the asset. I do not think that the time is just yet to buy a home however as the value did not get to the bottom yet.
Max Gardner said the following;
Some of those mortgages are simply walking away from homes because the outstanding principal on the mortgage is higher than the home’s value. Adding to the problem are mortgage companies, which also walk away from homes because of back taxes, lawyers’ fees and homeowners’ association fees.
“The problem is working its way up in income levels,” said Gardner.
Overall, he expects the number of foreclosures to increase at least until 2012 as they extend into wealthier neighborhoods, targetting professionals such as doctors, accountants and lawyers, he said.
And because of that Gardner has a simple message for consumers: The worst is yet to come.
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