A few days ago, I blogged about the morality (and psychology) of walking away from a mortgage. The situation is pretty common these days, and unfortunately, we’ll be saddled with far more questions than answers for quite some time. Yesterday, The New York Times published an article that explored the issue in more depth. Their lede, as usual, sets the stage perfectly:
In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.
“People like me are beginning to feel like suckers,” Mr. Koellmann said. “Why not let it go in default and rent a better place for less?”
It’s a pretty fascinating analysis of what home owners go through in determining whether or not to walk away, and at what point people typically make the decision to do so. To read the article in full, click here.