With all of the press these days about people walking away from thier under water mortgages, one might conclude that most every one with mortgage problems is closing the door as they leave turning their home back to the lender.   Such is not the case.  What is true is that most of the people with underwater mortgages have a hard time turning their homes back to the bank because they feel a moral responsibility to play by the rules.
If you were to rely solely on the headlines, you might think that all mortgage-holders whose home loans were underwater were walking away from their mortgages and allowing the property to go into foreclosure. However, the National Foundation for Credit Counseling's (NFCC) 2010 Financial Literacy Survey revealed that the overwhelming majority of consumers, even those in financial distress, still consider their mortgage payment a priority.
 
When asked if they were unable to meet all of their financial obligations, would they be more likely to keep their mortgage current, or their credit cards current, 91 percent of respondents said they would pay their mortgage first.
 
The survey also asked under what circumstances, if any, they would consider it justifiable to default on a mortgage. Only 23 percent of respondents answered that foreclosure is justifiable if the property is now worth less than what is owed on it. Further, 15 percent replied that there is no justifiable circumstance under which it would be acceptable to default on a mortgage.
 
 
 TRUST - LONG TIME TO GAIN, minutes to lose. The Schaller Family earns it, one client at a time.  http://www.truckeehomefinder.com 
 
Don Schaller
The Schaller Family Realtors
Dickson Realty Truckee
Broker Owner