Original Posting date of: 5/26/11
In case you don't get the AARP monthly Bulletin here is a relevant quote from their May issue: #6. "Walk away. If you can't afford the house and can't sell it for enough to pay the mortgage against it, walk away and rent. Don't run through your retirement savings in a futile effort to hold on." This per Jane Bryant Quinn a finance expert writing for AARP.
This is something I have been saying for quite some time and also FYI is another quote on the subject:
If you are paying a $1,000 mortgage each month for a 3/2, you have to add in costs that do not apply to renters:
1) Taxes, 2) Condo dues, 3) Condo insurance, so your real out of pocket expenses will not be the $1,000 but more like $1,350 a month. You can rent the same unit for $850, so each month you are $500 in the hole. If I hadn't paid cash for my own unit I would have been out of here a year ago. The realities of the situation are becoming evident to those here at NCC who are upside down with their condo units and we can expect many more units going into foreclosure. Pouring $ down a rat hole makes no sense, mailing in the keys or not paying until evicted is becoming more common all over the country.
These units won't remain empty, new Owners will pick them up at 50% discounts from banks and mortgage companies.