Sunday, June 28, 2009

Why Throw Good Money After Bad?

That is the question of the day, as many underwater home owners are deciding to walk away rather than continue to pay their mortgages.

Case in point, Richard ''Rick'' Rochon's Boca Raton estate is scheduled to go on the auction block next month after failing to sell for $21.9 million. A lender started foreclosure proceedings in December on the 25,000-square-foot estate in Boca Raton's Royal Palm Yacht & Country Club community. The mansion features six bedrooms, seven bathrooms and three half-baths.

In an interview with The Miami Herald in April, Rochon conceded he stopped paying on the mortgage loan because the house is worth less than the loan. The lender claims it's owed about $12.5 million. Rochon insisted the foreclosure action was not a sign of personal financial problems.

''My position is, you know what, why throw good money after bad?'' he said. ''I'm treating this as an investment. This is not my house.''


At 3:20 AM, Anonymous commercial real estate said...

they should consider first if this would benefit or good for them..


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