Tim writes a hypothetical question.
Regarding moving — at what point does it make sense for someone to walk away from a house (i.e. deliberately letting it go into foreclosure) in order to be able to move somewhere for a job? Is it worth the subsequent trashing of one’s credit? Would you hire someone who had done this?
I think a lot of people *are* willing to move, considering how dire the employment situation is, but there’s the issue of what to do about their homes. People may not necessarily have a place they can stay for free or be able to afford two residences.
This is a great question that my husband and I talk about almost every day. We left our home in Michigan and moved to North Carolina for his job, and our home has been on the market for over a year. Many people cannot afford two mortgages, and traditional borrowers of fixed rate loans are strategically defaulting on home loans because it’s a better financial decision.
Most rational people, like my husband, think it’s nuts. I’m not so sure.
Anyone have first-hand experience with this situation? Have you decided not to relocate because you can’t unload your home? Have you walked away from your home? I’d love to hear your thoughts.