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FACING FORECLOSURE? According to Website, "Just Walk Away!"

By Dean Moss

Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

June 25, 2008 01:54 AM

Good Morning, Everyone!

The angst, the turmoil, the depression of those facing possible foreclosure has, supposedly, just gotten easier. One option - "Just Walk Away!"

Started in California, and geared at homeowners who owe more than their home is worth, YouWalkAway.com provides a "do it yourself" kit to plan walking away from your over-leveraged home. For a $995 Fee, the company will hook you up with a licensed attorney, knowledgeable in foreclosure laws in your state, plus provide written tips and unlimited staff help to help you simply pick up and leave your property.

Some state laws prevent your lender for harassing you for payment during this process, if you follow the program's advice. Further, you can continue to stay in your soon-to-be-foreclosed home, payment free, until the foreclosure process is final. This could take up to eight months - possibly more - depending on state law.

JustWalkAway.com also has affiliations with credit counselors, to potentially reduce the sting of a foreclosure on your credit report. They also promise possible moving credits - up to $5,000 - through state agencies and possible income tax credits.

According to Jon Maddux, co-founder of YouWalkAway.com, "We don't give legal advice, we give legal information. We help the homeowner use the law to their advantage and get back on their feet before they're out on the street."

Illinois Foreclosures can take up to six months, perhaps longer with legal representation. After the foreclosure is recorded, the foreclosed homeowner has an additional 30 days to vacate their home, before forced eviction from the county sheriff.

Here in Chicago, companies similar to YouWalkAway.com are not common. Despite a sluggish market here, high inventories for sale, and reduced home equity levels, skyrocketing price increases were not as dramatic here as they were in other areas of the country. Fewer homeowners, on average, actually owe much more on their mortgage than their home's market value.

We offer more information, as well as a link to Chicago Tribune Real Estate Editor Mary Umberger's column last Sunday's newspaper, via BlogChicagoHomes.com, our Team Blog Center.

As a disclaimer, Dean's Team Chicago is not advocating this process - that's a decision between you, your family, and your legal counsel. We're simply reporting its presence.

DEAN & DEAN'S TEAM CHICAGO

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Hope Goss

Ventura Property Shoppe - Ventura, CA

Ventura Real Estate

I just took a short sale listing yesterday and I received a message already this morning that they think they will just let it go to foreclosure and "walk away". I'm not sure I want to argue with them - not even sure what the argument would be.

Jun 25, 2008 01:59 AM

Steve Dawson

J. Rockcliff Realtors (#01723588) - Walnut Creek, CA

I feel that if you are going to walk away from your home, at least do your own research as to the foreclosure laws and implications. Don't be so lazy as to pay a company.

Jun 25, 2008 02:04 AM

DALIA KIBBY

One Sothebys International Realty - Cooper City, FL

Selling Florida Homes with Passion!

I knew that with the skyrocketing levels of borrowers "upside down" on their mortgages that foreclosure would lose its stigma. This doesn't bode well for the economy as a whole. Lenders are not a 'non-profit' organization; their stockholders & future borrowers will suffer. That website is actually advocating lack of personal responsibility. What will happen to this country when walking away from a financial responsibility becomes socially acceptable?

Jun 25, 2008 02:32 AM

J Perrin Cornell

Coldwell Banker Cascade Real Estate - Wenatchee, WA

Broker, ABR, VAMRES

It is a hot topic with a lot of scammers out there. I believe that ratehr than paying these folks the 995 then reading their stuff and getting an atty you would be money ahead to just get the atty first.

Because of all the 80/20's or variants thereof you don't hear much about a deed in lieu of foreclosure which given the right circumstances would way beat these folks. But each state is different let alone the documentation and finally the particular lenders attitude. But as Pogo sez..."we have met the enemy and they is us"... many time the bad situation is made much worse by the borrower not facing reality and hanging on.

If you happen to live in Washington the idiot lawmakers have just made your life much more difficult (and I do mean idiot). Many homeowners that may have had an opportunity to sell or to sell short have just lost it. Intending to protect the homeowner the law of unintended consequences kicks in and now many REALTORS will not handle properties in foreclosure or in danger of going into foreclosusre. By the way if you are from Washington and this upsets you the guy theat wrote the legislation and rushed it through is named Weinstein (I believe that is correct and if not I apologize and will change it)... take time to thank him. (in my opinion only)

Jun 25, 2008 02:43 AM

FACING FORECLOSURE? According to Website, "Just Walk Away!"

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