You will notice considerable information on this blog regarding this topic, this is something that several owners have taken advantage of and others will also do this.
Throwing good money after bad simply makes no sense at all. Once upon a time it was considered disgraceful to default on a debt, today that stigma no longer exists and the theory is simple - the banks and mortgage companies created this mess, and to walk away from an underwater condo presents no stigma in todays society, most people think that the banks deserve it.
"If you own a home that is 50% underwater, 70% underwater, it will never ever, ever come back to where you purchased it." said Suze Orman, consumer advice columnist, who continues, “Do the calculations everybody. How much is it costing you to actually stay in that house? How many years will it take for you to pay more than that house is worth? If it’s 3 years, 4 years, 5 years; are you kidding me? That’s a house you really need to say bye bye. It’s not worth the money.”
Why pay a mortgage when you can rent the same unit for 2/3rds of the mortgage cost, PLUS not pay taxes, quarterly dues, and insurance? Of course your credit will be dinged for 7 years but that seems a small cost to pay to get out from under a major monthly payment that really has no benefit for you. Banks and mortgage companies are in no rush to toss out non-paying owners, they don't want the units either and letting them go for a year or more is not at all unusual. You can usually continue to live in the unit for 12+ months after you have stopped paying.
Sites below are The Consumerist and CBS TV Sacramento:
http://tinyurl.com/5rk4l76 and http://tinyurl.com/3jbanrd
