Are people really walking away from their homes? *

It's one of the dire details making its way into stories about the mortgage meltdown -- desperate homeowners walking away from houses they can no longer afford. Dramatic? Sure. True? Not so much, says The Times' Michael A. Hiltzik.

...there's a major problem with all this talk about the phenomenon of solvent homeowners "walking away": There doesn't appear to be any hard evidence that it's actually happening.

When pressed for the number of borrowers who could afford their mortgage payments, major banks and lender groups could not produce numbers figures.

Nor could the Mortgage Bankers Assn., the leading trade group for housing lenders. Spokesman John Mechem said he believed that walkaways by homeowners who could afford their payments were "becoming more prevalent." But he said that was based on "anecdotes we're hearing from our members and what we're reading in the newspapers."

Let's get this straight -- news stories are citing banks and lenders who, in turn, are getting their info from news stories? More on the convoluted logic in Hiltzik's full story.

One person not walking away is Alicia Cardenas, whose mortgage payment on her $410,000 home jumps by $462 next month, bringing it to $3,291. She's taking a stand to save the house, and keep a roof over her mother's head. The details of her battle plan, and her chances of success, are here.

-- Veronique de Turenne

Photo: Associated Press

* A previous version of this post misstated Alicia Cardenas' original mortgage.

Comments

[cyndy]

Why I don't feel sorry for Alicia Cardenas:

Ms. Cardenas income is 80,000 per year and owning home should no be a burden for her if she took the time to READ the paperwork. I am a single parent with three kids and an income of 55,000 per year. I make ends meet because I do not over spend and I rent. I rent because I cannot afford to buy a house with a conventional mortgage. I could afford to buy with a variable rate and my name would be added to the foreclosure list. My advice to Ms. Cardenas is to try to save her home but please stop acting like you are a victim. You are not the victim. You caused your own suffering. I am against any bail out for irresponsible home owners. Maybe you should consider selling your home and rent. :)

[ThrifyMom]

I am sorry, but people living beyond their means on money that doesn't belong to them doesn't inspire sympathy in me. I work 40+ hours a week, am a single mom and spend the rest of the time ferrying teenagers to their many events.
I live on a shoestring. I pay my bills and necessities first, and have very little left. I put 15% of my check into my 401K and stock options. I also increase that amount with every raise I get. I do things on the side to make extra money. My child support is also 300 a month, but it is rarely on time. My teenager is graduating and I have saved each month to pay the expenses related to that. I use recycling to add to my income.

I don't want to use credit cards because I am attempting to pay them off. People who don't want to face reality about finances don't deserve to have the government bail them out.
Nobody has ever bailed me out and a foreclosure bail out will eventually tax everyone. Read; government is not some nebulous entity..it is you and I. The taxpayers.
Thanks,
Thrify Mom