There are a lot of different scenarios that find people in a position where they are unable to pay for their house. Some lost their job and simply don’t have the money. Some agreed to mortgages that had rate adjustments built in that they never thought would happen, but did. Then there are those few who find they could pay, they have the money, but they don’t want to because the house isn’t worth it any more. The attitude that created this last little niche of the mortgage meltdown can go away immediately.
Newsflash: The house is worth whatever you think it is worth until the moment is sold. If you aren’t in the process of selling it, who cares if your neighbor got less for their house than your mortgage balance? Your house is your house; your mortgage is your obligation. The only thing in this scenario “worth nothing” is your word if you decide to not pay when you have the ability to do so but don’t feel like it.
Look at it this way. Imagine you buy a gallon of milk at the gas station on the way home. You leave the gas station and realize you need a couple more things and need to stop at the grocery store too. You run inside and see milk is cheaper at the grocery. All the sudden your gallon of milk isn’t worth what you paid at the gas station. Are you going to call your bank and stop payment on the check you wrote to the gas station? Maybe you’d try explaining to them that the milk you got just isn’t worth it any more and the bank can just take your jug of milk if they don’t agree. I doubt anyone would seriously consider this an option.
So here’s a suggestion of what to do instead. Go buy a gallon of milk. Maybe get some cookies to go with it. Go home to your nice little house, sit at the kitchen table with a glass of milk and some cookies and write the check to cover your mortgage. Repeat this each month and you’ll start to feel better about your house in no time.
