WHEN IT MAKES SENSE TO WALK AWAY FROM YOUR HOME
As the mortgage crisis grows worse and the number of foreclosures continues to rise, homeowners are taking measures to rid themselves of their homes and to free themselves from having to make mortgage payments. The first step in this process is retaining the services of a mortgage modification attorney.
If you bought during the peak of the real estate market, the value of your home may have decreased anywhere from 10 to 40% or more. If this is the case, you are most likely losing money by remaining a homeowner. As a result, many are making a sound financial decision by choosing to “walk away” simply because their home is worth so much less than what they paid for it. This is called a strategic foreclosure; it is not recommended that you attempt this process without first consulting with a mortgage modification lawyer.
Here are a few questions to ask yourself or go over with your mortgage modification attorney:
Are you stressed out about your mortgage payments?
Do you have little or no equity in your home?
Have you had trouble trying to sell your house?
Is your home sinking under the waves of the real estate crash?
What if you could live payment free for up to 8 months or more and walk away without owing a penny?
It is important to contact a qualified mortgage modification lawyer to discuss potential consequences of “walking away” from your home. Consequences vary case-to-case. However, in California the law is generally favorable to the homeowner/borrower.