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Walk Away From Your Home And Mortgage If Your Home Is Underwater...

By
Services for Real Estate Pros with Eric J - Dream Home Financing

That is exactly what some self proclaimed experts would want you to do. There has been a lot of buzz coming from a few individuals (with the means to reach millions) who posted that walking away is something homeowners should seriously consider. I refuse to name them or post a link to that source because I do NOT want to help them receive any additional publicity.

Can you potentially escape from what may "appear" to be a losing situation? Maybe.  However, advising homeowners to walk away is irresponsible...especially without outlining all of the negatives associated with that course of action.

Those negatives are as follows...

* The housing market would continue to decline.

* Banks would have additional non-performing assets on their books and would be less willing to lend.

* The foreclosure would remain on the homeowners' credit report for 7 years.

* Fannie Mae will not back another loan for that borrower for at least another 5 years after the foreclosure.

* In my opinion, you didnt actually lose money until you walk away or sell. Once you walk away or sell, you realize the loss.

These are just a few of the negatives that would be associated with walking away from an underwater home. On the surface, there MAY appear to be a short term savings. However, long term it just does not make sense.

Over the next few days I am going to think about a positive twist on the concept of walking away. A scenario where it makes sense for the housing market. I will post that argument if there is one.

What do you think?

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 Have a great day .....Eric - Dream Home Financing

 

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