Americans have changed their attitudes about paying their mortgages. In a new survey, real estate giant Willow found that almost half of all American homeowners who are underwater on their mortgages are now ready to walk away from their homes. The new numbers are up from previous surveys, from 41% to 48%.
For some underwater homeowners, the depressed housing market makes it virtually impossible to recover their lost value in the near future. In some cases, there is so much more owned on the home than it’s worth, recovering losses exceeds their lifetime.
Banks helped by TARP funds are posting record profits since the housing market collapse and robo-signers have made the foreclosure process faster and more profitable. Banks and mortgage loan servicing companies make money on penalties and fees added to delinquent loans. Sales from foreclosed homes also add cash to the balance sheet of banks.
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