I am hearing this more and more, especially in our market where the fall was hard and the recovery slow. It is a tough place to be...knowing that you can continue to make your house payment for years and never see the lightat the end of the tunnel. I have conversations with people that have a great deal of integraty but struggle with this issue. They start to rationalize it as a "business decision" and maybe they are right.
Is there a solution...? I don't know. My thought on it is that for those who can afford to purchase another home...Do It...purchase another home but keep the one you are upside down in. Let a renter offset as much of the payment as possible while you are catching the bottom of the market (we hope) on the new home. If you have children plan on letting them inherit the home that you are upside down in. By the time they need a home for a family of their own there is a good chance you will be back to even or possibly even have some equity.
What's to be gained...? Doing the right thing while maintaining your credit and integrity. You end up owning two homes instead of one and get the tax benefits that go along with it. You don't add to an already overwhelming problem and you don't do more damage to your neighbors values.
It is a tough spot to be in but maybe my suggestion is also a "business decision".
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