AS VALUES DROP MORE HOMEOWNERS WALKING AWAY FROM MORTGAGES
Benjamin Koellmann
In 2006  Benjamin Koellmann bought a condominium in Miami Beach. By his calculation  it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.
 "People like me are beginning to feel like suckers " Koellmann said. "Why not let it go in default and rent a better place for less?"
 "There is no financial sense in staying " Koellmann said. With the $1 500 he is paying each month for his mortgage  taxes and insurance  he could rent a nicer place on the beach  one with a gym  security and valet parking.
 Walking away  he knows  is not without peril. At minimum  it would ruin his credit score. Koellmann would like to attend graduate school. If an admission dean sees a dismal credit record  would that count against him? How about a new employer?
 Koellmann applied last fall to Bank of America for a modification  noting that his income had slipped. But the lender came back a few weeks ago with a plan that added more restrictive terms while keeping the payments about the same.
 "That may have been the last straw " Koellmann said.
In 2006  [TGT] bought a condominium in Miami Beach. By [TGT] calculation  it will be about the year 2025 before [TGT] can sell [TGT] modest home for what [TGT] paid. Or maybe 2040.
 "People like me are beginning to feel like suckers [TGT] said. "Why not let it go in default and rent a better place for less?"
 "There is no financial sense in staying " [TGT] said. With the $1 500 [TGT] is paying each month for [TGT] mortgage  taxes and insurance  [TGT] could rent a nicer place on the beach  one with a gym  security and valet parking.
 Walking away  [TGT] knows  is not without peril. At minimum  it would ruin [TGT] credit score. [TGT] would like to attend graduate school. If an admission dean sees a dismal credit record  would that count against him? How about a new employer?
 [TGT] applied last fall to Bank of America for a modification  noting that [TGT] income had slipped. But the lender came back a few weeks ago with a plan that added more restrictive terms while keeping the payments about the same.
 "That may have been the last straw [TGT] said.