But remember, it’s immoral, wrong, and VERY bad for a homeowner to execute his contractual right to relinquish property to a lender:
Morgan Stanley, the securities firm that spent more than $8 billion on commercial property in 2007, plans to relinquish five San Francisco office buildings to its lender two years after purchasing them from Blackstone Group LP near the top of the market.
If you’re underwater on your mortgage, strategically defaulting and walking away from your property is not only your legal and contractual right, in many cases it is the financially responsible thing to do. Worrying about impaired credit hardly makes sense when the banks don’t want to lend to anyone regardless of how good their credit is. And recent history demonstrates that once the banks decide they want to start lending again, they’ll lend to anyone with a pulse.