Walk Away from mortgage

[samantha_lynn]

Need some advice.

 

Has anyone successfully "walked-away" from their mortgage? If so, what are the implications? (besides the worse credit report)

 

I am currently at KCAP and am considering just turning in the keys whether we transfer to Kentucky or not.

 

I am not late on a payment yet I am underwater and have absolutely no desire to make repairs, show my house and then bring thousands and thousands of dollars to the closing table. (that's even IF I could find a buyer.)

 

BTW, regardless if we do get a new product, I think that Ford still will offer us a transfer to KY and I would take it. I want a fresh start.

 

Furthermore, If I anticipate a move next year, why not stop making payments now?

 

I keep hearing people live in their home for a year or two before getting the actual boot. I think it's a smart [strategic] financial decision.

[nvsked]

Hi Sam,

 

No doubt some difficult questions. You have a few options, none of them are great..... You can rent out current home, take the transfer of operation money and buy a new home in Ky.

Mortgage rates are low, but you'll have to have at least a one year rental agreement to obtain new mortgage. If later on you were to default on old mortgage they can't come at your new house for the old one. If you default on your current mortgage, you can save all those house payments for a nest egg, but you won't be able to buy another home for 5 years or so, new lending practices will preclude a new mortgage for at least that time. The bank can still come after you for default mortgage amount but unlikely especially crossing state lines. A short sale is an option, but it will mess up credit and prevent a new mortgage as well. Your state's consumer credit division has determined the amount of time from the first missed payment until the bank can take possession of the home. In some cases, it can be short depending on your states lending standards (red state or blue state) Hope the info helps good luck with the move....

[forddaughter]

A year or two? Who told you that?

 

6 months is more like it.

[995]

A year or two? Who told you that?

 

6 months is more like it.

 

Whenever the men in blue decide to put the papers on your front door that's when you get the hell out.. lol

 

I know a guy in Westland that gave up his house about 6 months ago and he's still living in it. He cleaned out the house but he still resides there I guess you could call that "squatting". lol

 

Go for the short sale, so you can get out from underneth the house then go buy another one in another state. Before the paperwork from the old house catches up to your credit report you'll already be in the new house.

 

Ask a lawyer about loop holes and tactics.. If you owe 35k or more on your home, I would rent it out and pay off the deed. If it's more then 75k run and run very fast..

 

Why did our gov take away first time buyer tax credits?? wow.. they really dropped the ball on that. They should also keep doing cash for clunkers.. Those programs seemed to work well.

[PFA]

If you quite making payments, it will take about 6 months to go to a sheriff sale. You then have about 6 months after that to reconcile your defaulted loan, or get out. So there is about a year or so that you can live there without making payments.

 

A year or two? Who told you that?

 

6 months is more like it.

[Racin' Rick]

Consider an auction with a reserve price equal to the amount due to the bank...any amount over the reserve is YOURS! Good luck!

[fmccap]

Need some advice.

 

Has anyone successfully "walked-away" from their mortgage? If so, what are the implications? (besides the worse credit report)

 

I am currently at KCAP and am considering just turning in the keys whether we transfer to Kentucky or not.

 

I am not late on a payment yet I am underwater and have absolutely no desire to make repairs, show my house and then bring thousands and thousands of dollars to the closing table. (that's even IF I could find a buyer.)

 

BTW, regardless if we do get a new product, I think that Ford still will offer us a transfer to KY and I would take it. I want a fresh start.

 

Furthermore, If I anticipate a move next year, why not stop making payments now?

 

I keep hearing people live in their home for a year or two before getting the actual boot. I think it's a smart [strategic] financial decision.

I have nothing against people who do this. Think about the banks and corporations that got bailed out with our children's money. Here are a couple links that might shed some light.

 

Walking Away Revisited - Reader Mailbag - Moral Dilemma

 

Should you decide to walk away, I would advise you to consult an attorney specializing in these matters, such as the ones at YouWalkAway.Com. For the record, I get nothing for this referral.

 

Walking Away Goes Mainstream; Yes It's OK; Moral Obligations Yet Again

 

If Morgan Stanley can give back properties "to get out of the loan obligation" so can you. Some might suggest two wrongs don't make a right but where's the wrong?

 

As is always the case Before Walking Away Consult An Attorney. Thinking about bankruptcy instead? Here's How to Find a Bankruptcy Attorney.

[FANTASTICFORD]

Need some advice.

 

Has anyone successfully "walked-away" from their mortgage? If so, what are the implications? (besides the worse credit report)

 

I am currently at KCAP and am considering just turning in the keys whether we transfer to Kentucky or not.

 

I am not late on a payment yet I am underwater and have absolutely no desire to make repairs, show my house and then bring thousands and thousands of dollars to the closing table. (that's even IF I could find a buyer.)

 

BTW, regardless if we do get a new product, I think that Ford still will offer us a transfer to KY and I would take it. I want a fresh start.

 

Furthermore, If I anticipate a move next year, why not stop making payments now?

 

I keep hearing people live in their home for a year or two before getting the actual boot. I think it's a smart [strategic] financial decision.

 

Look at all your options and base your decision on what's best for you and your family because only you know your financial situation.

I personally would file bankruptcy if I had too, I know people that walked away and filed BR. I hope it all works out for you, God Bless.

[TANGO4224]

Need some advice.

 

Has anyone successfully "walked-away" from their mortgage? If so, what are the implications? (besides the worse credit report)

 

I am currently at KCAP and am considering just turning in the keys whether we transfer to Kentucky or not.

 

I am not late on a payment yet I am underwater and have absolutely no desire to make repairs, show my house and then bring thousands and thousands of dollars to the closing table. (that's even IF I could find a buyer.)

 

BTW, regardless if we do get a new product, I think that Ford still will offer us a transfer to KY and I would take it. I want a fresh start.

 

Furthermore, If I anticipate a move next year, why not stop making payments now?

 

I keep hearing people live in their home for a year or two before getting the actual boot. I think it's a smart [strategic] financial decision.

 

 

You sure do need some advice----Here it comes!!!!!Stop acting like a low life P.O.S!!! From what you have posted you have not been late on any payments---you are not suffering Any hardships! You just want fresh start??? It is people like you that are just throwing gas on the fire! Prices are never going to increase as long as we have all these forclosures..My next door neighbor works for GM and has never been out one day---splits with his wife(also working) and they both just walk away from the house for a fresh start---- the house goes into forclosure---what do you think that did to the value of my house????? If it were not for low life people like you the values could start coming back----as long as people have this OH IT'S TO HARD ATTITUDE I GUESS I WILL JUST RUN AWAY MENTALITY things will never rebound... I think the laws need to be tougher on forclosure--not easier!!! Don't get me wrong---alot of people have lost due to no fault of their own--and it's those people who fought like hell to hang on as long as they could---You my friend are PATEHETIC Soooo heres the best advice-----Man up---Suck it up-----rent it out----set a good example for your children!!!! REAL MEN OR WOMEN DO NOT JUST WALK AWAY!!!!

[chassisgrunt]

Need some advice.

 

Has anyone successfully "walked-away" from their mortgage? If so, what are the implications? (besides the worse credit report)

 

I am currently at KCAP and am considering just turning in the keys whether we transfer to Kentucky or not.

 

I am not late on a payment yet I am underwater and have absolutely no desire to make repairs, show my house and then bring thousands and thousands of dollars to the closing table. (that's even IF I could find a buyer.)

 

BTW, regardless if we do get a new product, I think that Ford still will offer us a transfer to KY and I would take it. I want a fresh start.

 

Furthermore, If I anticipate a move next year, why not stop making payments now?

 

I keep hearing people live in their home for a year or two before getting the actual boot. I think it's a smart [strategic] financial decision.

 

 

OR, you could just be a responsible adult and pay your freaking bills.

[KC BOB]

OR, you could just be a responsible adult and pay your freaking bills.

 

$28 / hr. + benefits and you're bitching....get real.

[deflep1]

You first need to know if your home state is a "recourse" or "non-recourse" state, meaning if it's a "non".... the mortgage company can not come after you for the difference you owe them on your primary residency. (Missouri is listed as a recourse state) If it is a recourse state, they can come after you for the difference you owe vs. what they sell it for. Each recourse state differs on how long they can wait to come after you, (up to 5 years to file, and some are up to 15 years to collect!) They can wait until borrowers are financially stable, then tell them they owe the balance, PLUS interest! A lot of banks are not going after people right now, because there are too many strat. defaults, but some banks are trying to make an example of some borrowers, and Fannie & Freddie are now imposing much tougher rules on defaults. A foreclosure will destroy your FICO score (it drops 200-300 points). A short sale will hurt your score by 100-150 points, but the bank agrees to take less than you owe and not place a deficiency (money you still owe) on your mortgage. You are then free of your mortgage & house and can hopefully rebuild your FICO score in a few years. Only YOU can decide if you should just walk away from a contract you signed in good faith. If you are really underwater on your mortgage (20% or more..example: your house is worth 100k and you owe 120k or more), then it should at least be considered. If you're less than 20%, really try to do a short sale and repay as much of your debt to the bank as possible. If you just walk away and you don't have considerable other debt and still make $28 an hour... guess who the bank might try to make an example of?

[uaw supporter]

www.daveramsey.com

 

I used his system to payoff over $70,000 in two years and did not have to spend more than 10 bucks for his book. It's not for everyone but it worked for me and a few of my friends at my old plant.

 

Good luck and remember the bankruptcy never goes away. If you ever apply for anything you will always have to check the bankruptcy box and explain what happened.

 

The lawyers will tell you to go ahead but they have a vested interest in you filing so they can get paid.

 

Check it out and see for yourself, the program may work for you if you stay focused.

[uawxlt]

You sure do need some advice----Here it comes!!!!!Stop acting like a low life P.O.S!!! From what you have posted you have not been late on any payments---you are not suffering Any hardships! You just want fresh start??? It is people like you that are just throwing gas on the fire! Prices are never going to increase as long as we have all these forclosures..My next door neighbor works for GM and has never been out one day---splits with his wife(also working) and they both just walk away from the house for a fresh start---- the house goes into forclosure---what do you think that did to the value of my house????? If it were not for low life people like you the values could start coming back----as long as people have this OH IT'S TO HARD ATTITUDE I GUESS I WILL JUST RUN AWAY MENTALITY things will never rebound... I think the laws need to be tougher on forclosure--not easier!!! Don't get me wrong---alot of people have lost due to no fault of their own--and it's those people who fought like hell to hang on as long as they could---You my friend are PATEHETIC Soooo heres the best advice-----Man up---Suck it up-----rent it out----set a good example for your children!!!! REAL MEN OR WOMEN DO NOT JUST WALK AWAY!!!!

:happy feet: Thank You Tango

My thoughts exactly Americans have lost the will to survive no matter what

For all you numnut idiots out there that think your getting back at the banks for pulling some bullshit by not paying your bills think again WE ALL PAY

I'm not a fucking socialist so quit looking for Obama taxpayer bail me out money I'm sick of paying for deadbeats playing the system

This Poor Me Shit has got to stop

You Bought It Now Pay For It

Thank You

[FANTASTICFORD]

Thank You Tango

My thoughts exactly Americans have lost the will to survive no matter what

For all you numnut idiots out there that think your getting back at the banks for pulling some bullshit by not paying your bills think again WE ALL PAY

I'm not a fucking socialist so quit looking for Obama taxpayer bail me out money I'm sick of paying for deadbeats playing the system

This Poor Me Shit has got to stop

You Bought It Now Pay For It

Thank You

 

 

People that are still working are experiencing self-inflicted financial problems(POOR MONEY MANAGEMENT) that goes deeper then underwater mortgages but there's a dark side. They will not get back at the banks nor will they get away with anything! There are consequences to all our actions. Credit is very tight and will be for a long time...it will be much higher % for them IF they get approve for credit in the future.

 

Everybody I know that made the decision to file or walk away are suffering the repercussions now. People don't care anymore so why should I care if a person makes a decision to ruing their credit, either pay now or later but they will pay!

[samantha_lynn]

You first need to know if your home state is a "recourse" or "non-recourse" state, meaning if it's a "non".... the mortgage company can not come after you for the difference you owe them on your primary residency. (Missouri is listed as a recourse state) If it is a recourse state, they can come after you for the difference you owe vs. what they sell it for. Each recourse state differs on how long they can wait to come after you, (up to 5 years to file, and some are up to 15 years to collect!) They can wait until borrowers are financially stable, then tell them they owe the balance, PLUS interest! A lot of banks are not going after people right now, because there are too many strat. defaults, but some banks are trying to make an example of some borrowers, and Fannie & Freddie are now imposing much tougher rules on defaults. A foreclosure will destroy your FICO score (it drops 200-300 points). A short sale will hurt your score by 100-150 points, but the bank agrees to take less than you owe and not place a deficiency (money you still owe) on your mortgage. You are then free of your mortgage & house and can hopefully rebuild your FICO score in a few years. Only YOU can decide if you should just walk away from a contract you signed in good faith. If you are really underwater on your mortgage (20% or more..example: your house is worth 100k and you owe 120k or more), then it should at least be considered. If you're less than 20%, really try to do a short sale and repay as much of your debt to the bank as possible. If you just walk away and you don't have considerable other debt and still make $28 an hour... guess who the bank might try to make an example of?

Thank you everyone but especially Deflep1.

This post has been the most informative and sincere. I have made my decision contemplating what you wrote.

[8A4RE]

www.daveramsey.com

 

I used his system to payoff over $70,000 in two years and did not have to spend more than 10 bucks for his book. It's not for everyone but it worked for me and a few of my friends at my old plant.

 

Good luck and remember the bankruptcy never goes away. If you ever apply for anything you will always have to check the bankruptcy box and explain what happened.

 

The lawyers will tell you to go ahead but they have a vested interest in you filing so they can get paid.

 

Check it out and see for yourself, the program may work for you if you stay focused.

 

DITTO!

 

Dave Ramsey stresses not to let your house go into defalt. The bank will sell your house for what ever it can get and sue you for the difference owed to them. You end up paying anyways and now you have no credit.

[Twincam Harley]

Thank you everyone but especially Deflep1.

This post has been the most informative and sincere. I have made my decision contemplating what you wrote.

 

Go ahead and walk away from it. Ruin your credit and get sued for the difference. Duh!! You might as well quit your job and get on one of Obumbles programs for the weak and lazy. Please don't breed.

[theoldwizard]

A short sale is an option, but it will mess up credit and prevent a new mortgage as well.

I don't think so.

 

A friend of a friend did a short sale late last year/early this year and was able to get a mortgage on a new place no problem.

 

The big issue with shorts sales is the amount "forgiven" is considered by the IRS as "current income". OUCH !

[uawxlt]

Go ahead and walk away from it. Ruin your credit and get sued for the difference. Duh!! You might as well quit your job and get on one of Obumbles programs for the weak and lazy. Please don't breed.

thank you twincams

problem is there breeding like rabbits there called poor me i'm stupid weak and lazy please bail me out Obumis

[Furious1Auto]

They knew the housing market was going to collapse, that's why they changed the bankruptcy laws to protect the banking institutions. However people walking away is causing the housing prices to fall to the levels they should have been in the first place. Nothing is worth any more then people are whiling to pay for it, and it was allot harder to set decent terms when other people were whiling to pay the outrageous prices. This needed to happen, and should have long before the banks artificially inflated housing sales, by suckering buyers with sub-prime mortgage rates!

 

It is a matter of personal preference, however I think that if your house is worth10's of thousands less then what is owed, then let the lender keep it. There are so many foreclosures that at this point, the people know who have let theirs go have not yet had action taken against them.

Edited July 26, 2010 by Furious1Auto

[samantha_lynn]

Go ahead and walk away from it. Ruin your credit and get sued for the difference. Duh!! You might as well quit your job and get on one of Obumbles programs for the weak and lazy. Please don't breed.

 

 

How snobberish, condescending and outright retarded. You think you know everything Twincam. You think everyone's life is as smooth as yours and you are just so damn smart. You please don't breed. I was simply trying to point out that some of us (I) have been required to take on new responsibilities (i.e. kids/grandkids/parents moving back in etc). I must now decide on accepting the fact that I am underwater LITERALLY tens of thousands [home price collapse not my fault] or ridding other responsibilites.

 

As I also implied, this could be a STRATEGIC decision.

Edited July 22, 2010 by samantha_lynn

[OAC_Sparky]

How snobberish, condescending and outright retarded. You think you know everything Twincam. You think everyone's life is as smooth as yours and you are just so damn smart.

Please don't breed.

Not everyone has it as good as you do, either.

 

By your own admission, you make nearly $30 an hour, you're not behind on your mortgage; and now you want to shirk your responsibilities and walk away because it's "convenient".

 

There are people out there that actually lost their jobs, lost everything, but still try their hardest to live up to their responsibilities. That's why some people here give you a hard time. There are people out there that wish they had half the opportunity you have.

 

And why it pisses people off is because it's not only "fat cat bankers" that lose money on mortgage defaulters. It drags down the property value of your neighbours. It means average Joe investor that put money into mutuals and CDs lose money, It means that kids starting out can't get the credit they need at a reasonable rate for their first mortgage because the credit requirements are too high.

 

Nobody has sympathy for deadbeat dads who spread their seed across the neighbourhood and then skips out not supporting their kids. If they didn't want kids they should have kept it in their pants.

 

The same can be said for "deadbeat mortgagees". You signed the mortgage, pay it back. Or sell the house and take the loss. Just because you can legally walk away doesn't mean it's morally right.

 

Or don't be surprised when people mock your lack of scruples. Suck it up, Buttercup.

[feegsit]

Sammi-Lynn, You never should have left the trailer park. At 30 bucks an hour, it sounds like you have a lot more money than sense.

[Twincam Harley]

How snobberish, condescending and outright retarded. You think you know everything Twincam. You think everyone's life is as smooth as yours and you are just so damn smart. You please don't breed. I was simply trying to point out that some of us (I) have been required to take on new responsibilities (i.e. kids/grandkids/parents moving back in etc). I must now decide on accepting the fact that I am underwater LITERALLY tens of thousands [home price collapse not my fault] or ridding other responsibilites.

 

As I also implied, this could be a STRATEGIC decision.

 

Just because you owe more on your mortgage than the home is currently worth isn't license to quit paying. Your mortgage payment hasn't changed since you signed the note and if you continue to pay, the market value of your home will eventually rebound. You're upside down as soon as you drive a new car off the lot but you don't quit paying on that, do you? Same should be for your home.

 

Apparently you think eentitled to just shirk your obligation since it's convenient to do so. Who cares if your home's present maket value "isn't your fault"? What, property values are only allowed to go up according to you? Get real.

 

Like I said, quit paying the note and walk away. You'll be sued for the difference and owe that debt on top of all of your other debt and obligations. They'll garnish your wages when you don't pay up, as they should!!!

Edited July 23, 2010 by Twincam Harley