Blog Should You Just Walk Away?

Should You Just Walk Away?

Some folks reach the ultimate level of frustration with their home and are so far behind on their mortgage payments that they feel like fleeing far away! They may have been unemployed for awhile, or are just underwater for many reasons. For their personal financial plan to work, they must make a change in their housing costs. Simply walking away will result in a foreclosure, which stays on your credit report as a black mark for at least 7 years!

That’s a major comeuppance! An orderly solution could be a short sale whereby an expert negotiates a reduced payoff with your secured lender[s].  Lenders today would rather have the majority of their money back and re-lend it, rather than living with a foreclosed property, or as it’s called, an REO property which stands for “real estate owned”. The impact of a short sale on your credit report is akin to a grey mark that lasts for 3 years, after which time, you could utilize an FHA loan, if the rules stay the same. A Short Sale requires expertise that typically goes beyond your typical Realtor’s experience, training and interest. You don't ask a medical general practitioner to do the work of a specialist like a brain surgeon, as a comparison! If well-executed, a short sale could be a valuable solution that accelerates your financial plan.

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