Who do people just leave their house and move elsewhere and dont care if they pay the mortage or not?

Question

my friend or i thought she was ... had money problems and thought of moving then one day she told me that her husband and her were moving... they just packed and left the house without finding a seller.. she had once mentioned letting it go belly up. she didnt care... why would people be so immature to just quit paying their house and start a new payment on another house. the house looks horribe now . its been like two months and it just sits there.do you think they are waiting for it to go compelely forclosered and then its the banks problem.... wont it hurt her credit history. is it like bankruspsy. sorry i cant spell. she could have told me maybe i could have helped her in some sort of way. any help would be apprecitated. thanks :)

Answer 1

Would you have paid her house payment?  Would you even be able to?  I didn't think so.  I imagine she considered it "her business" and didn't care to share that bit of embarrassing information with you.  My question to you is, why is she not your friend anymore simply because she had financial difficulties?  She didn't do anything to you.  Then again, it looks like she's better off without you as a friend.  P.S.  Instead of apologizing for your spelling, how about using that nifty little spell check that pops up every time you misspell something?

Answer 2

You're right. This is going to ruin their credit.

As far as starting a new payment on another house, not likely to happen when noone will give you a loan.

People do this when they can't sell it for what they've got into it. They buy a home, it goes down in value, and they panic. In today's market it's hard to sell, foreclosures are everywhere, and if you can't get what you owe on it...

Another reason people do this is they're adjustable rate mortgage is about to go up, say their payments are going from $1,500 a month to $2,500 a month and there's no way they can even come close to paying the extra $1,000 a month. They know they're going to lose the home to foreclosure so some just bale out before that happens.

It's a risky move because they're still liable to the lender for the home and a vacant home is open to vandalism, for which they are responsible. Better to do it through foreclosure. It still hurts but the risk is less. You're right, it is also immature.

Answer 3

If they owe more than the house is worth, they may find it not worth the effort to keep it.