Default, Then Rent? What is wrong with people?
The Wall Street Journal had a recent article titled, “Default, then Rent”. What is going on with people values?
What is truly interesting about this article is that people just see it as no big deal to walk away from their obligation. There are no morals. The stories that are highlighted are not the kind that will break your heart. These are not about people that had medical bills, huge unforeseen expense, dry wall problems like those in other parts of the country. No these are people who didn’t care.One of the people highlighted is a School Teacher. Yes she is teaching your children. So what lesson is she teaching? She bought her big house on a “No Money Down” loan. Then she and her husband proceeded to spend thousands on upgrades.
Ms. Richey, the teacher, arrived in Palmdale in 1999. In 2004, she and her husband, Timothy, bought a two-story home on Caspian Drive, near Avenue O-8, with a no-down-payment loan. They took pride in the amenities they installed: a powder room with granite countertops, a backyard pool and play area, and the purple-and-turquoise fantasy playroom upstairs for their three daughters.
They had a $430,000 mortgage and their lender cut them a deal to offer them a payment of $3,300 per month. They felt this was too high. Maybe they should have thought about his before they bought the house? So they decided to walk away and stick the Lender with a foreclosure and the
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