Strategic Defaulters May Not Buy Again Soon
After the much publicized article in the LA Times where the author encouraged individuals to 'walk away from their home' this is an important note about the impact of this action.
Here is an excerpt from CNN via Realtor Magazine:
How long will it be before former home owners who walked away from their mortgages can buy again? Mortgage lenders are saying that in the future, losing a home because of illness or job loss will be seen differently than choosing to abandon a mortgage obligation for other reasons.
"If you made a strategic decision to default on paying your mortgage, it will work against you," says Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters. It will probably be seven or eight years before walkaways are able to buy another home, says Jay Brinkmann, chief economist for the Mortgage Bankers Association. "Credit scores are only one component of a complete credit decision," he says. "[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage."
Source: CNNMoney, Les Christie (05/28/2010)
If you know of someone who needs to explore options regarding their home, please introduce them to me. I understand these decisions are difficult and emotional, and it is important to get all the facts and understand the options available first.
Jeff Engle
http://www.PlacerAreaHomes.com
SFR (Short Sale/Foreclosure Certification)
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