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Walking Away From Homes and Mortgages Becoming All
Wednesday, February 6, 2008
With the real estate market taking a steep decline, it is obvious to everyone home prices have declined. You either know someone who is going into foreclosure or is starting to fall behind on payments. You could know a friend, coworker or even a family member who is in default on their mortgage.
Many people purchased houses at the peak of the market or purchase houses with no money down. No their mortgages are adjusting and they can no longer afford the payments. The down turn in the real estate market has not helped either because now they owe more for their house that what it is worth.
With more and more people loosing their house to foreclosure the option of just walking away from a house that will not sell is becoming more accepted. Just this week I met a real estate investor who is walking away from 2 houses he purchased at the peak of the market. I also met a family who purchased a 3 bedroom, 2 bath, middle income home in a nice neighborhood who thought their only option was to accept foreclosure and walk away from their house.
If you own a house and have a larger mortgage balance that what it is worth you do have options. If you have a house with mortgage payment that you can not afford, again you have options. Do not make the mistake of walking away from your house, even though you may know someone who walked away from theirs.
If you need to sell your house fast to avoid foreclosure you have selling options. My advice is to contact a local home buying company who specializes in creative real estate transactions. A local home buying company can conduct a short sale or lease option your house at no cost to you. Your lender does not want your house back. They are in the banking business no real estate.
Local home buying companies negotiate with your lender to accept less than what you own on your house. They then purchase your house from you so you can get on with your life.
Bottom line: Walking away from your house leads to bad credit that will follow you for many years to come. Working with a local home buying company could allow you to sell your house fast, keep your credit and at no cost to you.