news-record.com

It is very tempting for many homeowners to simply walk away from a mortgage and its related frustrations in not being able to make the payments.

However, most Americans believe walking away from a mortgage should never be an option for homeowners, even those who are struggling to make their payments, according to a recent survey conducted by FindLaw.com, a legal-information website.

No reliable figures exist to pinpoint exactly how many homeowners choose strategic default, which entails walking away and refusing to make monthly payments, but industry experts agree that it has become a growing concern in the fallout of the housing crisis, it was noted in a DS News report. According to the FindLaw.com’s survey, 60 percent of respondents believe it is “never OK” for homeowners to strategically stop making payments on their mortgages, even though they can’t afford the payments.

“Many homeowners are currently facing very difficult and complicated situations involving their home mortgage — in some cases even including the threat of foreclosure,” said Stephanie Rahlfs, an attorney and editor for FindLaw.com, as quoted by DS News.

One-third (34 percent) of respondents say it’s OK to walk away if they aren’t able to make the monthly payments. Only 3 percent say
home-owners should be able to walk away from mortgages anytime they want.

But before making any major decisions, Rahlfs stresses that homeowners should consult with financial and legal professionals. Homeowners need to be aware that any major change to a mortgage situation could lead to serious and unanticipated consequences involving taxes, contract law, credit scores, and the potential for lawsuits.

“Various government programs and tax changes involving mortgages have been enacted since the beginning of the housing crisis,” Rahlfs said. “Combined with private programs and variations in state laws, it creates a complicated web of potential actions available to homeowners, who should carefully consider the benefits and drawbacks of their decisions.”

The FindLaw survey was conducted using a telephone survey of a demographically balanced sample of American adults and has a margin of error of plus-or-minus 3 percent.

Jim Woodard writes for Creators Syndicate, www.creators.com.