Financial struggles and trouble making the mortgage payments is common, what is the right decision continue to use up what money they have left in reserves or save the reserves for their families. There is a negative impact to credit with that option and can put you at risk of foreclosure. So the burning question when faced with this dilemma is “Should I stay or should I go” or should I refi my home?

The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. World markets are in chaos, we are all finding it increasingly difficult to make the payments, and they have run out of options. When a borrower decides to vacate the property the bank is just taking the house through foreclosure. Is this the right move?

I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.I can understand that you may look at that as a traditional frame of mind, but it’s a fact of our present situation.Seven percent a year increase on values for the national average came around in the 90s.  Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Can you lift your finger?Credit rating?  Well then you clearly must be able to pay for a house.By then home prices were lower and stated incomes supported those prices; with that in mind it could have been okay for stated incomes.Then the temptation comes in to play with values skyrocketing and homeowners using that money to buy expensive items. These items were usually paid for with the home’s equity, creating a false sense of financial security.

Fast forward about 10 years to 2008 we are all faced with the dilemma should I stay or should I go.With current lending standards I can just walk away and in theory buy the house or another house lower than what the value is now in 2 years.  This is all true you can walk, you could buy your home for less, but do you really want to?Borrowers are as much to blame as anyone else; news coverage of the decline in home values is only prompting people to leave their homes.   Again You knew what you were doing when you took the cash out home refinance, you knew what you were doing when you bought the home, don’t bring everybody else down even further as somewhere along the line we must just stop this madness.I hope your reading this article right now with a renewed sense of hope; it is everyone’s responsibility to pull up their boot straps and save our economy and you can start with your mortgage.