The sobering news earlier this week that Indianapolis home sales have plunged more drastically than anyone expected might have some Indianapolis homeowners wondering if a strategic mortgage default is their best option. After all, there’s a good possibility that stalled sales and a huge inventory of Indianapolis homes for sale could lead to further price declines, meaning many more borrowers will owe more on their homes than they’re worth. Why not just walk – make that run – away?
Because, experts warn, no matter how dire your circumstances, a strategic default (purposefully walking away from your mortgage debt) will probably only create additional pain and problems for you and your family. The consequences of a strategic default are long-lasting and include:
- Ruined credit
- Inability to get another mortgage
- Tax liability
What might seem like the less painful and easier route might prove in the long run to be the most destructive. Instead of walking away, homeowners should contact their lender to seek mortgage modification or to negotiate a short sale. Mortgage modification allows you to stay in your home and should lower your monthly payments, while a short sale allows you to sell your home for less than what is owed the bank. Both these options also have consequences, so be sure to research what you’re getting into.
Indianapolis homeowners in danger of foreclosure can get free help at the Indiana Foreclosure Prevention Network (IFPN) workshop to be held September 1, 2010. Visit http://www.877gethope.org/ or call 877-GET-HOPE for more information.
Indianapolis short sale information
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