Quote:
Originally Posted by sammyg2
Answer, I wouldn't get into a situation where I would have it consider it but if it ever happened, I would never walk away. I would make payments as long as it was physically possible and would not miss a payment if i had money to pay.
Your friend signed legal binding contracts to pay back the money he borrowed and that is exactly what he should do, no matter what.
Walking away is just a legal punk out, a way to get out of facing up to your responsibilities.
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I agree, but it's not like he was a subprimer or a flipper. He put X% down, lived in the place and then rented it out a few years later. Even before the bubble was obvious, no one ever thought they'd be upside down on a house they put money down on and so then would be unable to refi. I think the worst thing about this situation is that the bank won't negotiate with my neighbor unless he starts missing payments. They don't seem to take someone seriously if they have perfect credit and have never missed a payment, but then call in to ask for some kind of deal. Once you're 90 days behind or so, it seems the bank gets willing to negotiate. Obviously, you have hurt your own credit score to start playing this game. But I'd think banks would be more pragmatic, especially when they have someone they know can and will pay if they cut a deal, as opposed to having that person just mail in the keys.