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Lots of people are walking away from their mortgages these days for various reasons such as losing a job, or if they locked into a variable interest & now find their mortgage payments even higher & the value of their home has plummeted. Many people are finding it is better to walk away. It's happening all over the place, all over the country. What you lose first is any money you put down initially; however if you bought a home for say $300K, you put $100K down & the house is valued at $200K or less, if you sell the house, you've lost that money anyway. If you were lucky to sell your house, you might even owe money at closing. So you've lost your initial down payment, have to bring more money to closing & pay some closing costs. That doesn't make sense. If you do that the bank will love you. You also have to factor in that you did get a tax break for the interest you deduced off of your income for income taxes. So sometimes it makes economic sense to walk away because it will take years for the market to get better (10 years or more).
We all know that this is a risk all banks take when they finance mortgages anyway & they take all their interest upfront when you make your payments & very little of your mortgage payments actually goes towards bringing down the mortgage.
Your only risk is that your credit rating will be shot for a few years. If you have credit cards, make sure you make the minimum payment every single month and pay all your other bills (utitlity, phone, etc) on time. The mortgage company rarely will come after you because you surrendered the property back to them & defaulted on the loan. They now have your house.
They only time you really get into hot water is when you don't pay taxes, that is when the State or Government can get after your assets. Since you surrendered your house back to the bank, they now have possesion of it (you didn't steal it) and they are liable for the taxes because it's now their house.
If you bought a car & you can't pay the payments, the dealer or finance company just comes & reposesses the car & TAKES BACK their property. They don't come after you because they now have their property back and again, this hurts your credit rating.
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∙ 11y ago
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What services are available to help determine if one should simply walk away from a home mortgage?
One should contact the bank or mortgage company where one obtained the mortgage. This institution can provide all of the information needed to determine if one should simply walk away from a home mortgage.
What is the solution of house foreclosure?
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
Is it possible to still get a reverse mortgage loan with bad credit?
You can get reverse mortgage, but you must also realize that if you pass away or sell your house you do not get all of the money. They will take it and all the interest that goes with it.
How does it take for a you to get kicked out of your house under a foreclosure?
That depends what state you reside in . There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
What is the foreclosure process on your house?
That depends on your state. The laws for foreclosure are set by state. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
How can you buy a house that someone has walked away from?
Buying a house that someone walked away from may seem inviting. Contact the bank that funded the mortgage to see if you can take over the mortgage or see if there is a realtor who can help you.
What services are available to help determine if one should simply walk away from a home mortgage?
One should contact the bank or mortgage company where one obtained the mortgage. This institution can provide all of the information needed to determine if one should simply walk away from a home mortgage.
Could my home be taken away if i am on mortgage but not house loan and husband dies?
If you are on the mortgage, you are on the house loan. If you mean you are on the deed, but not the mortgage, then there may be an issue. Many states have a homestead or dower right that could protect you. Consult a local attorney for help!
What is the solution of house foreclosure?
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
When I pass away and my daughter inherits my home will the home mortgage increase?
If the mortgage is not in her name as a joint tenant, the house will have to be made a part of the estate. The estate will have to satisfy the mortgage. The bank may allow the new owner to assume the existing mortgage, but they are more likely to want to establish a new one. You should really consult an attorney in your area for estate planning purposes.
Why should Halloween be banned?
that's it you cant it is an actual holiday you cant take away the privilege
Can you walk away from mortgage if husband not paying mortgage and you are separated?
You cannot "walk away" if you also signed the note and mortgage. In that case you must pay even if your husband doesn't. If the mortgage isn't paid, the property will be taken by foreclosure and your credit will be ruined. You should consult with an attorney who can review your situation and explain your options.
What should you do if you find a fire in your house?
Get Out Of the house right away
Filed chapter 7 bankruptcy is second mortgage gone?
If you are keeping your house and you have a first and a second, your second will not go away. If you are letting your house go, then the first and second will go. If your house is more than or equal to your first mortgage and you file a chapter 13, then your second will be "gone" in the end.
Is it possible to still get a reverse mortgage loan with bad credit?
You can get reverse mortgage, but you must also realize that if you pass away or sell your house you do not get all of the money. They will take it and all the interest that goes with it.
How far away from a house should a grave be?
9000 feet away
How does it take for a you to get kicked out of your house under a foreclosure?
That depends what state you reside in . There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
