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.
Barbara P. Fernandez for The New York Times
Benjamin Koellmann paid $215,000 for his apartment in Miami Beach in 2006, but now units are selling in foreclosure for $90,000. “There is no financial sense in staying,” he said.
“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?”
After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration’s loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.
New research suggests that when a home’s value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying.
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5 comments:
Must be the broken dream two step.
this is what is wrong with america people not paying for their bad investments. this should follow them their whole life and be mad to pay it back the whole country pays for the stupid investments these people make ( why wont they give me back all the money i lost investing in the 401k that the goverment wants us to put into )so i can start over what a joke
I agree totally, Anon 10:47am.
Me too!
me 3! They signed on the dotted line. Just like when you buy a car if they repo it you are made the pay the difference. It should be the same way for homes.
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