Deciding to walk away from a mortgage is not an easy decision, but if you’re ‘upside down’ on your loan, there’s not much economic motivation to keep your house unless you can get a modification or ask foreclosure lawyers in Topeka, KS to negotiate with your lender. If your house’s value has declined by 25% or more, walking away is a viable decision, as housing values can take years to recover.
Whether you bought your house without a down payment, or got an interest-only loan, the lack of home equity means that walking away would not be too costly. While you would not lose equity, you could still be held liable for your debt, and you could be taxed on the lender’s losses.
If you do decide that walking away from your mortgage is the wisest decision, there are even more decisions to be made. How you decide to move ahead can have a significant impact on your future finances. Your choices are:
Short sales: Here, you would have the lender’s permission to sell for less than the amount owed
Convincing your lender to retake the deed to the house, while agreeing to cancel the foreclosure proceedings
Allowing the foreclosure to progress, while living in the home rent-free until you receive an eviction notice (allowing you to save money)
Filing for either Chapter 7 or Chapter 13 bankruptcy, which eliminates most (if not all) liabilities related to foreclosure, and can delay proceedings for several months or longer. With the assistance of foreclosure lawyers in Topeka, KS and the bankruptcy option, you can extend your non-paid stay in the home.
It’s painful to give up on a house and walk away from a mortgage, and before doing so you should remember that it will likely make life easier for your entire family. You can probably stay in the house for several months without making any more mortgage payments, which will allow you to save enough money to move. It also may be comforting to realize you are not alone–you’re just one of millions of people who are facing the same decision. If you need help deciding whether to walk away from a mortgage, consult foreclosure lawyers in Topeka, KS. Visit the website for more information.
