Archive for October 17th, 2008

Should I Stop Paying My Mortgage and Buy the House Across the Street Instead?

October 17th, 2008 Categories: Random Thoughts, Real Estate Chatter

It may sound like a nonsense question, but in today’s Miami real estate market, there are folks pondering this very same thing.

Faced with owning a house that has declined in value by 40% or more since they bought it a couple of years ago, people in Miami are wondering why they don’t just let the bank foreclose on them and then buy the house down the street at the new, lower price.

Hmmm! Can someone actually pull this off? I bet with a little creative thinking, it could be done. I don’t know anyone who has actually done it, but I’ve heard people pose the question. Not directly at me, expecting an answer. But as a “what if” scenario.

I’m not here to provide an answer to this question, by the way. But I think banks must be aware that this is a possibility and they’re more motivated to help homeowners stay in their present homes by restructuring their current loans. A lower loan payment can certainly provide the relief needed so a person doesn’t have to think about doing things like this. Even, if thinking is all they’re doing.

I’m sorry we’ve even gotten to the point where questions like this pop up. Bummer.

Spoken by Maggie Dokic | Discussion: 5 Comments »