I’ve got to say that it really frosts me that the stereotype of people who “choose” to walk away from their mortgages is that they are irresponsible, credit card toting shop-aholics with sub-prime mortgages who never should have been allowed to buy a house in the first place. Certainly some of you must know one of the countless young couples for whom this just doesn’t fit!

If not, let me tell you about one young couple I know well. Family consists of father employed full time, mother now employed full time, and 1 y.o. baby. Conventional mortgage, car payments for 1 car (the other paid off), student loans, and medical bills for a c-section that was not fully covered by medical insurance.

He was downsized about a year and a half ago – got another job right away, but there were medical insurance issues – thus one of their bills. He now commutes 2 hours each way. Then her job moves. She now commutes 2 hours each way. They would like to move closer to work but can’t sell their house for enough to cover remaining mortgage. Figure they would still owe almost $40K. Both jobs are vulnerable to the economy, so both take second jobs. Now child care is an issue and another big expense.

Bottom line is stress is taking a toll on their health, their marriage, and the baby is spending way too many hours in day care. They are both discouraged and don’t see any way out. They are not planning to walk away from their mortgage but I wonder what they will do if either or both of them lose their jobs.

And the really sad thing is I know 3 other young couples in a similar situation. All are good solid responsible people who were doing what they were supposed to do. The details change but the impact of having a house that is worth lots less that what you bought it for doesn’t. So, please, spare me the stereotype.