There’s a very interesting article from ABC news that suggests it’s ok to walk away from your home. This is certainly controversial advice. While some may want to stick it to the lenders, it is better in the long run to short sale your home. FHA recently stated that they will allow you to purchase again immediately to take advantage of this market. If you do go through the foreclosure route, you will be effectively out of the market for at least 3 years per FHA guidelines. You can read this article here: http://abcnews.go.com/GMA/mortgage-defaults-expert-brent-white-tells-borrowers-walk-away/story?id=9802435
There is also a big lesson in this story. Do NOT touch your retirement to placate the lenders. The banks cannot touch your retirement in a short sale or a foreclosure, so why ruin your future? As long as we are working towards your short sale, they will not foreclose on your home. I hope that this provides some insight into the business, and if you need help, I want to help you.
Wow. I can’t believe that would come from National News. We do a lot of research at http://www.gohoming.com and feel that foreclosure mods are becoming more favorable. We see the market not only for REO homes for sale but short sales as well in 2010
Wow. Didnt hear anything about this till I read this article. Def. something that I want to learn more about. I am kinda with Jay also in that I am dumbfounded that the national news would say something like that.
interesting real estate blog and I will do some research to learn more – keep the good work
The last thing our economy needs is more people to walk away from there homes. Banks don’t want to be home owners and most are willing to make loan modifications to help prevent foreclosures. There are a few markets that people are so upsidedown on their mortgage that it might be in their best interest to walk away, but it is not something that should be taken lightly.
Real Estate Professionals will benefit greatly by building their business in 2010… I appreciate this post. Thanks
This is such a tricky situation which we are currently in. I hope people make the right decision in the long run.
We had a government minister in the UK saying repossession was the best course of action for some distressed owners. Bizarre!
A very informative article and very useful.
Foreclosures can get messy, you are right about short sales being better. Get what you can while there is still an opportunity. It is a difficult situation to be in and unfortunately many people are still stuck with this debacle.
ABC seems to be advocating foreclosure as the easy easy of of a difficult situation, but I’m glad you pointed out that this may not be the best advice for people who want to buy back into the market in a year or two when the market rises.
to make loan modifications to help prevent foreclosures. There are a few markets that people are so upsidedown on their mortgage that it might be in their best interest to walk away, but it is not something that should be taken lightly.
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