Seven To Ten

To rescue the economy and encourage consumer spending, the US government is printing more money and increasing federal debt. But the shadow of recession continues to loom large.

Monthly mortgage payments are rising as home values plunge. This double whammy has caused some homeowners to simply abandon their homes and their loans, rather than throw good money after bad.

New tax laws introduced last year have allowed home buyers to walk away from mortgage obligations without a tax consequence. Last time, if bank forgive the shortfall when the house is foreclosed, it is considered as income and hence taxable.

Is it alright for troubled homeowners to walk away when they can no longer afford their homes? I think if you choose to walk away, you have to accept that you’ll pay more for car loans, credit cards and mortgages in the future. At least for a while. I am worried that the hard lessons of greed are not learned if the exit strategy is so easy.

What do you guys think?

A new form of marketing has been tailored for the mass of unsold home inventories and foreclosures. A Foreclosure Bus Tour….

It is a six-hour trip to showcase homes to buyers in Orlando and educate them on the vagaries of snatching foreclosures in a state where residential real estate has stagnated over the past two years.

The foreclosure bus tours are good value for visitors. A cost of $45 per person or $65 per couple covered the tour, house information, teaching sessions, a continental breakfast and lunch at Applebee’s. A mortgage broker, attorney, home inspector and agent are on hand to advise; for newbies, you get a feel of the team you need to set up for your first foray into real estate.

Real estate agents have also organized foreclosure bus tours in California, where the idea seems to have originated, and cities such as Phoenix, Detroit, Kansas City and Jacksonville.