Quote:
Originally Posted by fintstone
I know a guy that moved for a new job in a less expensive area and bought a home assuming that he could sell the the old one in the area where he previously worked. His timing was perfect (perfectly bad). He has not been able to sell it for about two years. The value of his "for sale" home has dropped from about $700K to about $350K...if he could sell it at all. In the meantime, he has already poured amost $100K into the payments while it sits vacant. It is costing him $50K per year in carrying costs and he is underwater almost $350K. His intentions were good...and he can still make both payments...but the cost is staggering. He lives frugally, has a significant income, owns his currrent home and likely will never need credit again...as he has some cash saved and owns his new home already. At what point (if ever) would this guy be justified to sell short, get a loan modification, or just walk away?
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Never.
He screwed up and bought a second house without selling the other one first, and he knew he couldn't afford both. Why would anyone in his right mind buy a second house before he sold the first unless he was speculating?He gambled thinking he could get away with it.
If he walks away from it, the rest of us have to pay for his mistake. I'd prefer he pay for it instead.