Financial Planning: Foreclosure?
February 12, 2008 by Miranda Marquit
Filed under Mortgage and Loans, News, Personal Finance, Trends
I came across something I found rather interesting today. A report that foreclosure is becoming a mortgage trend that is based on financial planning. This isn’t the sort of foreclosure by Americans in bad financial positions (the folks “economic stimulus” is meant to help). This new foreclosure trend actually includes middle to upper middle class Americans who can afford their mortgage payments. Inman News reports on this rising mortgage trend:
Meanwhile, the homeowners can avoid the risk of more negative equity and eliminate the cost of owning and maintaining their home from their household budget. And since the property now belongs to an institution rather than another family, why not strip the fixtures and sell them for cash on your way out of town?
The home is now no more than another consumer item. Or perhaps an investment like those on the stock market. Cut your losses and leave. It seems like a rather irresponsible mode of financial planning, much like the craze to get rid of debt a few years ago by filing for bankruptcy.
Do you think foreclosure is a viable financial planning move?
