Posted on: 02nd Jun, 2010 07:41 am
Walking away from a mortgage seems like a good business decision and a bad moral decision.
Once decided it sounds like there is a lot of rules, regulations and paperwork. And, different states have different rules.
On the other hand getting advice sounds expensive. I just read yesterday where a company was charging $1,500 per year for advice. That's a mortgage payment.
I stumbled onto this forum (mortgagefit.com) and this looks like a great place to ask questions for a Do-It-Yourself solution. But I've always felt you can not be your own lawyer - of course affordability is a question.
I also have run into websites like youwalkaway.net and leaveyourhomewithmoney.com and a bunch of other similar websites that charge in the $300 or less range. They claim to walk you through the whole process. But I did not see an emphasis on paying your credit cards off. (That's what I would do first - and try to keep them open.) The emphasis seems to be leaving with money in your pocket. I guess that means you stay in the house until the bank kicks you out.
The key to crack is how do you survive housing wise over the following decade when your credit record may be ruined?
Why doesn't the government just cut programs, pay down taxes and reduce debt to get this economy moving again? Just buying votes I guess. The Democrats are just criminals. I feel terrible even thinking about not paying a mortgage.
Once decided it sounds like there is a lot of rules, regulations and paperwork. And, different states have different rules.
On the other hand getting advice sounds expensive. I just read yesterday where a company was charging $1,500 per year for advice. That's a mortgage payment.
I stumbled onto this forum (mortgagefit.com) and this looks like a great place to ask questions for a Do-It-Yourself solution. But I've always felt you can not be your own lawyer - of course affordability is a question.
I also have run into websites like youwalkaway.net and leaveyourhomewithmoney.com and a bunch of other similar websites that charge in the $300 or less range. They claim to walk you through the whole process. But I did not see an emphasis on paying your credit cards off. (That's what I would do first - and try to keep them open.) The emphasis seems to be leaving with money in your pocket. I guess that means you stay in the house until the bank kicks you out.
The key to crack is how do you survive housing wise over the following decade when your credit record may be ruined?
Why doesn't the government just cut programs, pay down taxes and reduce debt to get this economy moving again? Just buying votes I guess. The Democrats are just criminals. I feel terrible even thinking about not paying a mortgage.
Welcome jeff,
In my opinion, walking away property is not a good option. If you walkaway from the property, the lender will foreclose it. This will not only affect your credit, but you will also be responsible for paying off the deficient balance resulting from the sale. In my opinion, rather than walking away from the property, it will be better if you could contact your lender and apply for a deed in lieu of foreclosure. If the lender accepts your request, then you won't remain liable for the balance dues.
In my opinion, walking away property is not a good option. If you walkaway from the property, the lender will foreclose it. This will not only affect your credit, but you will also be responsible for paying off the deficient balance resulting from the sale. In my opinion, rather than walking away from the property, it will be better if you could contact your lender and apply for a deed in lieu of foreclosure. If the lender accepts your request, then you won't remain liable for the balance dues.
I got in touch with Randy at the website and he said the following:
"If you have already missed mortgage payments you credit record is shot anyway. If you do a deed in lieu of foreclosure your credit is still shot. You assigned agent at the Leave Your Home with Money (http://www.leaveyourhomewithmoney.com) website will show you how to stay in your home for 12 to 24 months. Banks are overloaded with foreclosures and empty houses lower the value further. This literally puts $25,000 to $50,000 in your hands. These days if you can not pay your mortgage its better to have savings to start over. Get everything but the mortgage paid down to the 10% level.
This is not a moral issue. It is a business decision pure and simple. The banks are not modifying mortgages like they should. Unfortunately their hand needs to be forced in these tough economic times."
Also, my research on the Internet seems to disagree with your last statement "you won't remain liable for the balance dues." Sometimes yes, sometimes NO seems to be the answer. Personally I am leaning towards having someone that has done it before hold my hand through the process. There are tens of thousands of dollars on the line. I feel so bad.
"If you have already missed mortgage payments you credit record is shot anyway. If you do a deed in lieu of foreclosure your credit is still shot. You assigned agent at the Leave Your Home with Money (http://www.leaveyourhomewithmoney.com) website will show you how to stay in your home for 12 to 24 months. Banks are overloaded with foreclosures and empty houses lower the value further. This literally puts $25,000 to $50,000 in your hands. These days if you can not pay your mortgage its better to have savings to start over. Get everything but the mortgage paid down to the 10% level.
This is not a moral issue. It is a business decision pure and simple. The banks are not modifying mortgages like they should. Unfortunately their hand needs to be forced in these tough economic times."
Also, my research on the Internet seems to disagree with your last statement "you won't remain liable for the balance dues." Sometimes yes, sometimes NO seems to be the answer. Personally I am leaning towards having someone that has done it before hold my hand through the process. There are tens of thousands of dollars on the line. I feel so bad.
Walking away from your home is a bad moral decision in my opinion. Trying to stick with it and pay for what you obligated yourself to pay prior is a much more responsible choice.
Imagine if everyone was irresponsible and walked away from their mortgage obligation, that would be devastating to the mortgage industry and our economy. Someone has to stand up and find viable ways to get out of their mortgage mess. There are lots of free websites out there that assists homeowners like mortgagecrisistips.com , hud.gov among others. If you seek you will find help, and free help at that. why would you shell out thousands to a lawyer/company to help you modify your loan when you can research and do it yourself for free. I understand it is less work, but you have to give up some much money just to get a little help with no guarantee. It makes little sense to me.
Imagine if everyone was irresponsible and walked away from their mortgage obligation, that would be devastating to the mortgage industry and our economy. Someone has to stand up and find viable ways to get out of their mortgage mess. There are lots of free websites out there that assists homeowners like mortgagecrisistips.com , hud.gov among others. If you seek you will find help, and free help at that. why would you shell out thousands to a lawyer/company to help you modify your loan when you can research and do it yourself for free. I understand it is less work, but you have to give up some much money just to get a little help with no guarantee. It makes little sense to me.