Foreclosures: Don't Walk Away From Your Mortgage - short sale options for home owners in mortgage crisis
Some may consider that walking away from your home mortgage is nothing more than an "efficient breach" - a legal deal when parties agree to sunder a contract if the cost of breaking the deal is less than the cost of maintaining it. Gather some new enegery and patience and read our avoiding home foreclosure tips and help for finding alternatives to foreclosure.
Don't short change your future by avoiding a deserving look at both short-term and long-term consequences FIRST. However frustrated you may be facing foreclosures, don't walk away from your mortgage. Walking away or "strategically defaulting" on your mortgage is not the answer. You will find that there is nothing strategic about foreclosure, especially when there are solutions to avoid it. Even if your house is now "underwater" and has a home value of less than your home mortgage loan, there are several good reasons not to default.
Home Buying:
You may want to buy another home, and you will be adding to your challenges.
Personal Integrity:
Stop and thinking of it from a lender's perspective: would you ever want to lend your money to someone who walked away from a mortgage? Would you consider them as someone you could "count on" or "too big of a risk"? Get Professional advice FIRST. There are penalties for violating your mortgage contract, and yet, sometimes, it just adds up financially and in business sense to break it.
Your Credit Score:
Are you set for the next several years with your major needs, like autos, home appliances, etc.? When homeowners take the route of walking away from their mortgage. expect that it will drop your credit rating by 150 points. Keep the big picture in mind. As much as you are weary in the moment, know that it will take years to recover. If your credit is already terrible, the impact may be less. If you are a homeowner, like so many, who fall in the range of reasonable - great credit, lowering your credit score so dramatically is a huge loss. FICO, a credit-scoring firm, estimates that someone with a 680 score would see that number sink between 85-100 points after a strategic mortgage loan default, and someone with 780 could crater 140-160 points.
Increased Financial Burden:
Many other services use your credit ratings to determine what to charge you, or even, whether to do business with you at all. For example, insurances use declining credit scores as a reason to increase your insurance rates. Or if you are looking to rent your next home, some landlords screen out potential candidates if they have bad credit. When lenders are ready to take a chance on you again, business reality is that you may well have to pay for the privilege, with stiff interest rates due to your default history.
Hiring Decisions:
Some companies consider who has gone though foreclosure or "just walked away" as a determining factor in their hiring decisions. Remember, many are looking for jobs or better jobs these days, and there may be many fine lines between those who get hired and those who don't. Because this may strongly effect your means of income, Home Destination encourages you - do not walk away from your mortgage.
Tax Consequences:
Home Destination strongly encourages you to check with a tax account in advance so that you are prepared for your future.
Moving Costs:
Packing, renting a moving truck, or paying for storage, all can add up to costing you more money. Think it through carefully. You may find that your king size bedroom set won't fit in a small rental interim property. Will you be facing new home furnishing costs?
Act Now To Have More Options
You should know that you have options, and that you are not alone. More than 25% of American homeowners now owe more than what their homes property values are worth, and millions more are having a hard time paying their mortgages.
I've developed a free, detailed report on foreclosure alternatives you can download below. Download it today and give yourself a green light for a solid financial future.
The sooner you take this step, the more time you'll have to act and move toward a more promising tomorrow.
HOMEOWNERS OPTIONS REPORT
Foreclosures: don't walk away from your mortgage!
Read important information to protect yourself against home mortgage relief scams.
Request Your FREE Report by contacting Jenna Thuening
Homeowners You Have Options
Foreclosures Dont Walk Away From Your Mortgage
"Walking away from one's home should be the absolute last resort," says Gail Cunningham of the National Foundation for Credit Counseling. "However desperate a situation might become for a homeowner, that does not relieve us of our responsibilities." But there is one category of homeowner, she says, where foreclosure does make sense: people who bought their homes "with their hearts and not their heads." If it is clear that you will never be able to afford your home mortgage loan, then walking away may possible be a viable option of desperate means. You don't want to go on in a impossible situation fooling yourself. Take action and move on to life within your means.