JKirk

Wells Fargo Downgraded: Oppenheimer's Whitney Goes Too Far

The talk of people "walking away" from their 1st mortgages is getting a little overblown, in my opinion. People seem to forget that walking away from that mortgage means walking out of your home... and deciding to rent. I bought my home in August 2005 - I timed the top quite well - but I'm still better off paying my mortgage than walking out on it and paying rent (in excess of my mortgage interest) to live in a smaller, less comfortable dwelling. I'll keep my home, thanks. People walking away are either speculators, people that bought too much house or didn't understand how financing their home worked, or those unfortunate enough to have suffered loss of employment or a costly personal (health) crisis. The rest of us can't walk away from our 1st and 2nd mortgages without some serious consequences- and to me that means that, negative equity or not, we're going to keep paying our mortgage to keep living in our home.