Walk Away from Your Home? But Who’s Chasing You?
Monday, March 29, 2010
Walk Away from Your Home? But Who’s Chasing You?
Is walking away really an option when facing foreclosure? A recent opinion piece in the Wall Street Journal; When It’s Ok to Walk Away From Your Home, gives advise that could lead down a scary alley.
If you walk away, who might be chasing you?
Unless the deficiency is released in writing by the lender, it can haunt you. Just because lenders are overwhelmed right now, doesn’t mean that a new industry of debt collection won’t be the next wave in this foreclosure crisis.
A recent New York Times Opinion piece; Underwater, But Will They Leave the Pool? addresses the social pressure to stay current in a mortage that doesn’t make sense.
While I agree with the emotions addressed by both articles, suggesting lenders won’t pursue the deficiency is down right scary.
As homeowners are recovering, getting new jobs and back on their feet, deficiency collection efforts can come out of the shadows like a scene from Halloween 3.
So what’s the answer? Don’t be like teenagers in a scary movie that relax and forget to lock the door. Make sure to protect your financial safety by consulting a CPA and attorney.
Short sales can be a positive alternative to foreclosure. Part of short sale lender negotiation is a written release of the deficiency judgement prior to closing. You receive a 1099 from the lender. But your CPA can help address the impact on your taxes using the Mortgage Debt Relief Act of 2007.
By doing a short sale, you can avoid foreclosure and possibly prevent bankruptcy. Walking away cuts off the opportunity to explore options to avoid foreclosure, such as a short sale. Even if it comes to the last resort, there are advantages to staying in your home;
“Throughout the country, many people continue to default on their home loans — but lenders have backed off on forced evictions, allowing many to remain in their homes, rent-free. Squatters in Their Own House: When Banks Don’t Foreclose, Washington Post”
Free reports and answers on how to prevent foreclosure;
Foreclosure Solutions
Short Sale FAQ
Free Resources and White Papers
It’s never to late to find a positive solution. For more information on how short sales work, be sure to visit www.KauaiHelp.com or feel free to contact me. I’m here to help.
Is walking away really an option when facing foreclosure? A recent opinion piece in the Wall Street Journal; When It’s Ok to Walk Away From Your Home, gives advise that could lead down a scary alley.
If you walk away, who might be chasing you?
Unless the deficiency is released in writing by the lender, it can haunt you. Just because lenders are overwhelmed right now, doesn’t mean that a new industry of debt collection won’t be the next wave in this foreclosure crisis.
A recent New York Times Opinion piece; Underwater, But Will They Leave the Pool? addresses the social pressure to stay current in a mortage that doesn’t make sense.
While I agree with the emotions addressed by both articles, suggesting lenders won’t pursue the deficiency is down right scary.
As homeowners are recovering, getting new jobs and back on their feet, deficiency collection efforts can come out of the shadows like a scene from Halloween 3.
So what’s the answer? Don’t be like teenagers in a scary movie that relax and forget to lock the door. Make sure to protect your financial safety by consulting a CPA and attorney.
Short sales can be a positive alternative to foreclosure. Part of short sale lender negotiation is a written release of the deficiency judgement prior to closing. You receive a 1099 from the lender. But your CPA can help address the impact on your taxes using the Mortgage Debt Relief Act of 2007.
By doing a short sale, you can avoid foreclosure and possibly prevent bankruptcy. Walking away cuts off the opportunity to explore options to avoid foreclosure, such as a short sale. Even if it comes to the last resort, there are advantages to staying in your home;
“Throughout the country, many people continue to default on their home loans — but lenders have backed off on forced evictions, allowing many to remain in their homes, rent-free. Squatters in Their Own House: When Banks Don’t Foreclose, Washington Post”
It’s never to late to find a positive solution. For more information on how short sales work, be sure to contact me. I’m here to help.
"Unfortunately you are not alone. It's more than an outcry. The powers that be really need to come down harder on Bofa than they already are. Working on these short sale for over 2 years now I've uncovered down right fraud happening on the lenders parts. If they cared more about moving this country forward than protecting their own wallets then they would cut the red tape and approve these short sales in a timely manner. Our team made the wise decision to get BofA loans which were FHA or Freddie Mac backed, approved prior to listing on the market. Then we can list the home as "Price Approved" and close in 30 days. In this instance BofA does a full appraisal, rather than an incompetent "Broker Price Opinion" (nothing against agents but they have no idea how to make adjustments on comparable homes) and then the bank issues an "Approval To Participate" letter which dictates what price we can go on the market and take anything north of 88%. I really do hope your situation improves. " about Congressional Bill to Speed Up Short Sales
on Tuesday, August 30, 2011 @ 9:15 AM
Lisa Zeiner said
"We made an offer 4 months ago to BofA, and have heard nothing. It was a cash offer which is better than the zero money they are collecting now. And since the people don't care they are trashing the place, by the time BofA gets around to it our offer will be gone as the place is a mess!! Septic issues now, garbage being dumnped. All of this could have been avoided if BofA really wanted to correct their cash flow problem and sell these properties in a timely manner. They cry about cash but then do nothing intelligent to fix the problem" about Congressional Bill to Speed Up Short Sales
on Tuesday, August 30, 2011 @ 9:06 AM
aluminum composite panel said
"Every time i come here I am not dissapointed, nice post." about Bank of America to Offer Principal Reduction to Underwater Borrowers
on Sunday, April 24, 2011 @ 9:11 PM
Jones Ramirez said
"Thank you for the work you have done into this post, it helps clear up a few questions I had." about How do appraiser’s determine a homes value?
on Tuesday, April 19, 2011 @ 10:07 PM
HollyRobsonf said
"Hey - I am certainly happy to find this. great job!" about Bank of America to Offer Principal Reduction to Underwater Borrowers
on Wednesday, April 13, 2011 @ 6:45 PM