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.
"Running out to my recycle container right now to check. Helpful article. " about Recycling: A Refresher Course
on Monday, July 19, 2010 @ 9:50 PM
Shirley said
"I heard they are considering extending this credit past November. Heard anything like this?" about Six Critical Things You Need to Know to Get the $8000 Buyer Credit
on Wednesday, September 30, 2009 @ 7:57 AM
Steven said
"Well, time will tell I guess. For my sake I hope it's true but I have a feeling the high end market is going to come down in price for the next several years. " about
on Wednesday, September 30, 2009 @ 7:56 AM
Micah said
"Keep posting more articles like this. Question, does a short sale offer delay the foreclosure process??" about New Foreclosure Rules In Washington Assist Homeowners
on Wednesday, September 30, 2009 @ 7:54 AM
Jessica said
"This will be even more true when the price of gas jumps to seven dollars a gallon!" about Homes with High Walk-ability Worth More
on Wednesday, September 30, 2009 @ 7:52 AM