My Clients said..."We are glad we didn't walk away!"

By
Real Estate Broker/Owner with WHISPERING PINES REALTY 20398180

I received a call yesterday from clients that will be working with me in the future.

I met with them 6 months ago and talked about the possibilty of walking away from thier home as they were like many people...upside down.

WE talked about the ramifications of walking away. 

Destroying perfect credit.
The increase of interests on current bills
The increase in insurance rates because of the credit risk.

ECT ECT.

Having the pride they did, they decided to wait for a few months and not make such a snap decision.

The call I got yesterday was of very deep gratitude.

The Wife came was diagnosed with cancer a few weeks later.  Car issues made the repairs to costly so they needed  to purchase a different car.  Plus some other issues, like they said "When it  rains it pours."

The reason for them being so happy was that if 'they' had walked away from their home, they would not have been able to purchase another car, (because they still had great credit) at least not one that was not ready for needed repairs.  Family are not able to finacially help so they would have been in a tough spot.

Homes in their neighborhood are seeing a slight increase in values.  3 of the last 5 sold for above the list price and 2 were above the appraised price.

This family is poised to be in great position as the economy starts to turn around.  They still have thier pride intact and to them that meas a lot.

They wanted to thank me for helping them understand the problems of walking away.

Walking away from a home because you are upside down in a mortgage is NOT always the best thing to do, especially if you can affoard the paymments.  Bad credit will eat you alive on other bills and issues for years to come.  Even finding rental housing can be very hard in tight rental market when you have ba credit.

Think hard before just walking and get some GOOD financial advice.


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Topic:
ActiveRain Community
Location:
Minnesota Chisago County Rush City
Groups:
Realtors®
"Whacked"!!!
Diary of a Realtor
Square Pegs
Minnesota Real Estate
Tags:
advice

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Rainmaker
197,258
Carmela Jacobs
Carmela Realty - Thousand Oaks, CA
Ventura Co., Los Angeles Co., CA, & Global Realtor

William,

Great advice, I have a feeling they will be calling you in the future when they need your services.  

Dec 22, 2011 03:09 AM #1
Rainmaker
320,000
Randi Brammer
Randi Brammer, Acctg. - Hinckley, MN
Accountant & Tax Preparer

Bill, there are a lot of people who just WALKED away that are now wishing they had not.  Many are living with Relatives because they can not get into different housing because of bad credit.

Dec 22, 2011 03:19 AM #2
Rainmaker
3,983,633
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This is a problem for some people.  they are told to walk away but they have no IDEA of the problems involved in doing so.

Dec 22, 2011 06:58 AM #3
Rainmaker
631,662
Vern Eaton
Askov, MN
Realtor 651-674-7449

Bill, My cousin walked away because he was $20,000 upsuide down.

In 3 months, not even in foreclosure he was seeing higher interest rates on his credit cards.

After the sherrifs sale He was paying close to $500 a monoth more in extra costs, and he was not able to get into any kind of a decent rental.

He figures he will lose more than what he had gained.  He had no problem paying the mortgage, just a neighbor told him he should walk.

Dec 22, 2011 07:02 AM #4
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Rainmaker
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William Feela

Realtor, Whispering Pines Realty 651-674-5999 No.
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