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: Closing Real Estate in Chicago

Should Ya Be a "Mortgage Walker"??

By Peter Olson, Esq.

The WSJ had an Op-Ed on the subject Friday. The point of the article is essentially that an increase in people just leaving homes once they get behind on a mortgage is sort of the proper flow of the "market." In the author's view it's rational behavior:

Borrowers acted rationally in response to market forces and incentives during the bubble: Buy a house because prices always go up; you can't lose. Many are acting rationally now: Mail the keys back and un-borrow the money, because prices are sinking fast while the debt isn't. When the house was purchased not as a first home but as a rental investment, the decision is even easier.

If it's not a place you want to live and you don't expect the price to ever bounce back (can you say Detroit), I think the wise move is to leave.

Full post as published by Closing Real Estate in Chicago on February 09, 2008 (boomark / email).