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Why Walk Away from my Mortgage?
People consider abandoning their mortgages for numerous reasons. Some have predatory lending agreements that are smothering them in debt with hidden escalation clauses. Others invested in either a number of homes that no longer have renters, or homes where the rent is below the payment. You've likely also heard the terms "under water" and "upside down" -- meaning your house is appraising much lower in a crashing real estate and banking market, and you're "carrying" a payment based on a $400,000 valuation for a house worth $200,000. Some were encouraged to "buy more house" than they could afford, and inflation caught them unaware of usurious banking practices in this era of no regulation.
Some people call this a typical "down cycle" that happens every 9-12 years in real estate, others are calling it "the perfect storm" due to the vicious downturn that has happened in both real estate AND banking at the same time, which has never happened before. In the past, during the S and L meltdown, numerous buyers jumped in to buy distressed properties, such as GE Capital, strengthening real estate prices as the banks collapsed and were bailed out or reformed. This time, due to an extremely bad economy, soaring gasoline prices, deep national debt and deficit spending, BOTH banking and real estate are in trouble at the same time, unable to help slow the spiral.
When you consider a walkaway-- leaving your home, and abandoning your mortgage, the worst mistake you can make is deciding too quickly and not doing your homework. Simple research can save your credit, change a dire situation to one with cash for a fresh start, or even keep your home with an all new, low rate you can afford, including forgiveness of past missed payments, penalties and interest.
We know the pressure can be unbearable with mounting debt and no seeming way out. But without research, advocates, and understanding the many options you really have, it is possible to make a bad situation much worse than it has to be. You HAVE rights, many the banks don't want you to know about, and Local, State and Federal agencies are coming up with new rights, new options and new programs almost daily.
At ETI/PSU we STAY ON TOP of these developments, to be sure you know about EVERY option, including those that will preserve your credit, let you leave or stay with additional cash, and come to the table with ALL your options out in the open. Estate Transactions (ETI) has been advocating for, and arbitrating on behalf of consumer property rights, for over 40 years. Phoenix State University Press (PSU) has been publishing consumer guides and courses since the 1950's.
We've teamed up to make YOUR life easier, less stressful, and your cash position, credit and finances sound even in the midst of the difficult walkaway decision. Let us help you with the pros and cons, but more importantly, with ways you can take cash out, preserve your credit, save one home if you have two, and be able to secure a fresh start in your current or new home!
Even if you don't get help from us, GET HELP, as you'll be amazed at the options you have that lenders don't want you to know about, including FREE resources that don't require an attorney. We believe we're the best there is, and we're helping thousands find relief each week, but even if you don't use our help, please do your research BEFORE making that final decision!
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