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.
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.