Owners walking away from homes

With mortgage payments through the roof and house prices dropping, some homeowners are simply walking away from their homes.

More homeowners are making a drastic decision as they watch the values of their homes sink.

Many borrowers are simply abandoning their homes and mortgages rather than trying to keep up with rising payments — according to the Mortgage Bankers Association.

A new term has been coined for it: jingle mail.

It’s estimated that more than 5 million people have negative equity in their homes — in other words it’s worth less than their mortgage.

Defaulting on a mortgage can have terrible consequences on your credit record. Though the experts differ about whether foreclosure or bankruptcy has a worse effect on your credit score.