Others view their upside-down mortgage
as a bad investment, and although they may have financial capacity, their willingness to resolve their issues is low so they opt to sit at home rent-free until they are forced to leave.
Such lenders' rights provide discipline to our housing market--Canadian borrowers think twice about buying more house than they need knowing their future earnings could be clawed back if they wash their hands of an upside-down mortgage
The program would pay a civilian or a Soldier the difference between his home's selling price and 95 percent of its value on the BRAC announcement date, or pay off an upside-down mortgage
, whichever was higher, and also pay the closing costs.
The nation's housing market is slowly improving, but many Americans continue to struggle with upside-down mortgages
-- owing more on their homes than they are worth.
Cash-strapped homeowners are staying put in their homes or taking a loss on their upside-down mortgages
and moving back in with their parents to raise their families.
Additionally, it is believed that to the extent that this stimulates investments in home improvements, it will enhance home values and help close the gap on upside-down mortgages
and shrinking home values that are a major cause of our current economic problems.